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This is a very simplistic view of the markets and there is nothing ridiculously easy about turning information into piles of cash, its not like a light bulb goe
by philipodonnell 10y ago
This is a very simplistic view of the markets and there is nothing ridiculously easy about turning information into piles of cash, its not like a light bulb goes off and your bank account instantly has $1M in it. Here are some examples where I might be able to develop an edge based on an algorithm but not be able to monetize it without help.
- The strategy may require trading access to markets or software that I do not have because I lack capital/connections/education required, like large capital requirements for heavily leveraged strategies or market-making strategies that require one of a limited number of seats.
- The strategy may require very active trading but I am not in a personal situation to be that active because of job/family/prison. Many options strategies are here.
- The strategy may be profitable on a small dollar amount but will require a trader with more experience to scale that up to a larger amount of capital. This happens a ton, dealing with scale is much more difficult that most people realize.
I'm not saying you should accept anything at face value, I'm just saying you should not dismiss them because they aren't already rich.
- bluetwo 10y agoI'm not talking about "information", I'm talking about the ability to predict. And I'm setting a very low bar.
- philipodonnell 10y agoPredictions are information. :-) In any case, I was just responding to the maxim of "if it works why aren't you already rich?". I have a options strategy in front of me that is definitely profitable over the last 10 years, no question. Up in every month over that time-frame except 3 times. I'm not rich because it needs nearly constant monitoring and large starting capital and I can't do that with my day job. But, if I ever try to raise that capital, I will be very sad if all I hear is "if it works why aren't you already rich?"...
- bluetwo 10y agoBest of luck.