Most traders know this one simple truth: the stock market goes up over time. It's been happening for over a century. The market has a positive drift, largely because the U.S. government is constantly injecting money into the economy and driving value-added growth.
This means that if you want to make money in the stock market, you can simply invest in quality companies and wait. Over the long term, the market trends upward. In fact, the average annual return of the S&P 500 over the past 30 years is 10.52% (assuming dividends are reinvested). Even adjusted for inflation, the return is still a healthy 7.78%.
But if you’re reading this, I’m guessing you’re not here just to ride the wave of positive drift. You want more. You want to beat the market—not just coast along with it.
Sure, we could all put our money into ultra-low-risk vehicles that passively benefit from the market’s upward trend. Over time, we’d accumulate wealth by simply taking advantage of positive drift. For many, that strategy works, with no need for fancy strategies or technical analysis.
But if you're here, you likely aren’t interested in doing just that. You enjoy playing the game—testing your skills and finding ways to beat the average market returns. You understand that markets don’t go straight up in the short term, and those who know how to navigate volatility can capitalize on opportunities that buy-and-hold investors miss.
That’s why Good Kids use math, probability, and technical analysis. We’re not chasing secrets or looking for get-rich-quick schemes. Instead, we want to build a simple system that stacks the odds in our favor.
The market’s positive drift is only part of the story. Yes, the market has averaged around 10.52% returns over the last 30 years, but for those willing to go beyond holding and waiting, there are opportunities to outperform.
We aim for more by:
Selling puts during periods of high volatility.
Timing entries and exits based on technical patterns.
Adding uncorrelated products to our portfolios to reduce risk and boost returns.
Overweighting and Underweighting sectors according based on market cycles
Managing Delta based on short term market direction
In a world where the market’s beta (or baseline return) is enough for most, we’re looking for that extra edge—something that pushes our performance beyond positive drift. And here’s the thing: it’s possible. Research from firms like Tastytrade shows that adding strategies like options selling can improve long-term performance compared to passive investing alone.
If you’re ready to move past the simple concept that “markets go up over time” and start stacking probabilities in your favor, then it’s time to dig deeper. Whether it’s:
Using volatility to your advantage.
Analyzing patterns for reversals.
Leveraging uncorrelated assets to diversify risk and optimize returns.
There’s more to trading than simply following the positive drift.
I talk strategy here in the blog, share trades in our Discord, and provide even more specific details to my Mr. Money Maxwell Inner Circle. While I believe there is an edge to be found, the truth remains: over time, buying and holding is historically profitable.
Happy trading, good kids!
-$Maxwell
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