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The third education post 11-27-2025 (continuation of the previous article)


The third education post 11-27-2025 (continuation of the previous article)

EGX 30 Index EGX_DLY:EGX30



Hello
Continuation of the previous article and the second article
The summary of what we talked about is that technical analysis is not magic, nor is it a supernatural phenomenon that predicts the future with uncertainty.
Now comes the important question: Since analytics alone are not enough to achieve sustainable profits, how do we make a profit?
Answer: You must first answer the following question in your mind (What percentage do you expect to gain from the stock market in one year – then in two years – then in five years?)
I won’t answer the question but I will try to help you answer it
It is understood that if you read the company’s financial statements and reports, you will find that if the company succeeds and achieves sustainable profits (the company here is considered a landing project), then within 5 to 10 years, the company’s average profit will be about 20% per year (5% more or 5% less).
You may find that some years the company’s net profit exceeds 100%, just like the previous two years, some years it makes a profit of 20%, and some years it may reach 10%, or have a net loss.
(So, if you look at the financial reports of any company in the past 10 years, as long as it is a very successful company in the local area, you will find that its average net profit is between 15-25% (note that it is the cumulative average for one year)
Note: These are commercial projects that have been implemented and have their own risks, debts, expenses, crises, etc.
I will answer you in another way to help you
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We will calculate based on bank certificate
In the past 10 years, you will find that bank interest rates range from 11% to 27% (the cumulative average per year in these ten years, if the calculation is accurate, will be between 15% and 17%).
You can calculate the average cumulative returns of gold and the stock market over the past 10 years and compare them to each other
In summary, you will find a very important result:
“The shorter the comparison period, the greater the deviation and the difference between the returns of different assets – and the longer the comparison period, you will find that ultimately the returns of all assets are getting closer and closer – there will be differences, but not as big as you think.”

A simple example to clarify
Gold has returned about 50% so far in 2025 – compared to the stock market’s returns (you’ll find about 40% on the 30 to this day) – compared to 27% for certificates
Coming up in 2026 (you may see gold fall, stocks fall, certificates fall)
The average returns for these three in 2025 and 2026 are as follows
For example, Gold = 35% – For example, Stock Exchange = 20% – For example, Certificates = 23%)
Pay attention to whether assets fall in 2026 (the two-year average returns of the three assets are close)
Count the same way for 10 years, then 15 years, then 20 years past. You’ll find that the return differences are very close, cumulatively around 15% to 30% each year.
So in the next few years
(I outline the idea to you – you think about the rest and answer the question (how much do you expect or need to profit from the stock market in one year – then 5 years – then 10 years))
A final simple example (equity funds that spread like wildfire – most are currently profitable, even if the stock market declines in subsequent years – most of the fund profits previously earned will evaporate, and investors who continue to hold the fund over the long term will end up with an average profit of 15 or 10% of the cumulative average over the last 5 or 10 years, maybe even less (similar to the rectangular pot theory).
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Let’s return to our topic
Because we’ve known before that technical analysis isn’t magic, nor is it the only way to achieve sustainable profits
How do we make money in the stock market? Is the profit over time at least equal to or greater than the asset’s profit?
I have the solution, but no one knows how to apply it except the person who understands the basics first. So if you haven’t read the previous articles, please read them and I will tell you the solution and answer in the next article because this article is too long.

Today we answered an important question, which is the expected profit amount + short-term and long-term profit comparison of assets

One final note – it has nothing to do with the topic of the post
Recently, the stock market has fallen for a week in a row. Apart from commercial banks, Eastern banks and telecoms, there is almost no one supporting the index anymore – naturally everyone loses – if you lose money during a general correction in the stock market (don’t be sad, it’s normal, it’s no shame for you – I also lost money last week, everyone lost money, and the fund itself started to fall – what’s not normal is that you lose money during a massive rise)
If you fail during group climbing – wait for the next article and I will tell you the solution
Please forgive me for the uncoordinated writing and random writing.
I wish you all success



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