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An honest take on the idea of a personal active trading should always mention the opportunity cost. Doing the necessary research is a job. One that takes signif

An honest take on the idea of a personal active trading should always mention the opportunity cost. Doing the necessary research is a job. One that takes significant time to learn, and one that will continue to take significant time once you've mastered it. So, like any job, you better either like it better then the other things you'd be doing instead, or you'd better be confident you can make it pay more than the other things you'd be doing instead.

dsacco 9y ago
> An honest take on the idea of a personal active trading should always mention the opportunity cost. Doing the necessary research is a job. One that takes significant time to learn, and one that will continue to take significant time once you've mastered it. I agree - this is why it’s a particularly important caveat that even if you have the skill and wherewithal to beat the market, you’ll need to also do it without a team or software infrastructure. I’d generally recommend that people interested in this learn as employees of an established firm, then go out on their own if it makes sense.
- closeparen 9y ago
  I have read arguments that if you believe you have the skills to beat the market, a job on Wall Street is the best course of action - Other People’s Money means no risk to you, and the expected value of your incentive pay exceeds your own returns unless you have a ton of personal capital to play with already. If it turns out you’re right, take your saved bonuses and strike out on your own. If you’re wrong, being a Wall Stret alum opens plenty of career opportunities.
- njwi332 9y ago
  What are some examples of established firms that would be good places to learn?
ternaryoperator 9y ago
That's exactly right. You might be able to beat the market if you put a lot of time into your stock picking research, but can you beat the market and pay yourself more than minimum wage for your time? Almost certainly not. And unfortunately, doing it as a hobby for the fun of it, isn't a workable compromise, precisely b/c beating the market requires so much work.

dsacco 9y ago

> An honest take on the idea of a personal active trading should always mention the opportunity cost. Doing the necessary research is a job. One that takes significant time to learn, and one that will continue to take significant time once you've mastered it. I agree - this is why it’s a particularly important caveat that even if you have the skill and wherewithal to beat the market, you’ll need to also do it without a team or software infrastructure. I’d generally recommend that people interested in this learn as employees of an established firm, then go out on their own if it makes sense.

closeparen 9y ago
I have read arguments that if you believe you have the skills to beat the market, a job on Wall Street is the best course of action - Other People’s Money means no risk to you, and the expected value of your incentive pay exceeds your own returns unless you have a ton of personal capital to play with already. If it turns out you’re right, take your saved bonuses and strike out on your own. If you’re wrong, being a Wall Stret alum opens plenty of career opportunities.
njwi332 9y ago
What are some examples of established firms that would be good places to learn?

ternaryoperator 9y ago

That's exactly right. You might be able to beat the market if you put a lot of time into your stock picking research, but can you beat the market and pay yourself more than minimum wage for your time? Almost certainly not. And unfortunately, doing it as a hobby for the fun of it, isn't a workable compromise, precisely b/c beating the market requires so much work.