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> Professional traders presumably make their living trading, so their returns far exceed 5%. In theory, sure. But most do not "far exceed 5%", and instead have
by dsacco 10y ago
> Professional traders presumably make their living trading, so their returns far exceed 5%.
In theory, sure. But most do not "far exceed 5%", and instead have the fees of their employing funds to subsidize their strategies.
For traders who are working independently, or in prop shops, I suppose it might be true by definition (if they last in the market they are either re-upping and gambling, or at least profitable). But that's still not the rule.
More importantly, retail investors are not professionals, and Robinhood is basically catering to /r/wallstreetbets with this sort of product offered to them.
- rl3 10y ago>More importantly, retail investors are not professionals, and Robinhood is basically catering to /r/wallstreetbets with this sort of product offered to them. I agree with this and never asserted anything to the contrary. The scope of my reply was addressing a single point concerning margin in context of professional traders. Also, the statment that most returns "far exceed 5%" probably wasn't the best choice of words. I've edited my original post accordingly.