Key insights
- The author's six-year attempt to outperform the market through active stock trading resulted in beating the S&P 500 in only two years. This experience led to a shift towards passive investing in index funds (VTI, VXUS) and a reduced focus on active trading. The piece suggests that for many, admitting the index is the primary investment plan can lead to greater enjoyment of markets and a more sustainable approach, rather than a constant struggle to outperform.
I tracked almost every trade for six years. Around 400 trades and mostly are individual stocks. I beat the S&P 500 in two of those years. The other four were either worse or close enough that the effort didn’t really justify it.
Once I looked at it that way, the whole thing felt kind of ridiculous. I wasn’t just underperforming an index fund and was spending a second part-time job trying to underperform it.
I still hold a few individual names I genuinely believe in long term. But most of my portfolio went into VTI and VXUS last year, and I’ve barely touched it.
The funny thing is I enjoy markets more now. I can read about companies or macro stuff without feeling like every opinion needs to become a stock trader. That’s also how I’ve been thinking about prediction markets on moomoo. If I have a specific view on a specific event, I’d rather keep it small and separate there than pretend every market opinion belongs in my long-term portfolio.
Does anyone else make this shift? From trying to beat the market to just admitting the index is probably the main plan?