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You can do it by yourself, if you create any algo that is able to perform above 50% hit, you can get infinitely rich. Why work for a company if you can do it? O
by thiago_fm 8y ago
You can do it by yourself, if you create any algo that is able to perform above 50% hit, you can get infinitely rich. Why work for a company if you can do it? Or why would a company that does it would exist if somebody solo can do this?
I'm a fundamentalist, so I hardly believe anybody can reliably make money doing this. Maybe with HFT or insider information, which both are fields I don't really wanna compete in, as they both feels like cheating to me(and the second, illegal).
If anybody could reliably make money doing trades of any kind, which doesn't either abuse insider information or latency of systems, they could as well predict the future, the lotto ticket etc.
The people I think work on this field are working for big companies and investing other people's money, which generally got a huge amount and by themselves can sort of try to manipulate the market, usually have a taste of inside information and generally get outperformed in the long term by somebody that just reads balance sheets.
But this is a comment from an outsider, which has been making constantly more gains than S&P(by a tight margin, dunno if this will last, maybe I'll just regress towards the mean) for a decade, just checking balances sometimes. I just invest in companies which are well managed, by my criteria, while I work fulltime as a software dev.
Just try to imagine how many companies with open capital exists, and how bad management can be, if you could find the good management in good markets, also try to understand more how the government will influence it, you could create much more powerful methods.
I've done a fair of trading though, mostly flipping IPO's, but I don't believe somebody can make money doing trades.