While researching I also read that 40% of the clients with a highly successful fund making double digit growth, year on year for 10 years lost money. How does that happen? Simple.....40% of people left the fund because they joined during a peak and saw their investment fall and quickly left. The 60% who remained continued to make profit year on year.
So back to the stock market and why do more people lose than win. The simple answer is human nature. We are all sheep and the majority of us are followers. We buy something because other people have bought it and told us how good it is. The followers buy shares when they have already gone up in price. The followers buy shares because someone down the pub told them and didn't do any of their own research. The funny thing is, as followers we often don't sell our shares on the way down because we are scared of making a loss and hang onto them in the hope of the price returning. On the stock market - I have always been a follower!
I'm sure by now you can clearly see where I am heading with Sports betting and my little service SoF. I recently gained an influx of members on the recommendation of SBC, word of mouth, twitter and obviously cracking results. Everyone wanted to buy shares in SoF at their peak performance and then we hit a downturn. However unlike the stock market my new followers quickly left the scene and may not return but it will be an interesting percentage for me to work out come the end of the year. How many of my members lost money despite triple digit bank growth?
Personally I don't know if the saying 'buy low, sell high' applies to tipping services and would be interested to hear people's thoughts that manage portfolios or have tried this in the tipster community as we would certainly be a clev