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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 sign
by 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 agoI 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 agoWhat are some examples of established firms that would be good places to learn?