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Yes, that is the definition of active trading. I suggest you do more research. Active trading is contrasted to passive trading (index funds). It’s akin to roul

by et2o 7y ago

Yes, that is the definition of active trading. I suggest you do more research. Active trading is contrasted to passive trading (index funds). It’s akin to roulette in that it’s statistically non-optimal, not that the level of risk is the same. HN readers tend to be focused upon evidence and mathematically inclined.

tempsy 7y ago
If that were true literally no HN reader would work at a startup, but we know that isn't the case. Or take any compensation in the form of equity in one company, even at a large one.
- pm90 7y ago
  That would be true iff compensation were the only reason for joining startups.
- RussianCow 7y ago
  First of all, financially and statistically speaking, working at a startup almost never makes sense compared to working at a FAANG or similarly high-paying company. (There have been countless articles and discussions about this on HN, so I won't rehash the arguments.) Second, there are other reasons for working at a startup that have little or nothing to do with money (it's more fun/rewarding, you learn more, work/life balance, etc). The latter doesn't really have a parallel in investing unless you only invest in sustainable/ethical companies or something like that, but then the conversation about maximizing profit and beating the market is kind of moot anyway. > Or take any compensation in the form of equity in one company, even at a large one. Public stocks are liquid enough that you can sell them as soon as possible and immediately "cash out", so any equity-based compensation at a public company can reasonably be treated as cash. The same applies to a private VC-backed company with an upcoming IPO, though obviously there is a little bit more risk involved there.
- greglindahl 7y ago
  That doesn't follow at all. I work at a tech startup because it's a business in which I think I can add value. I don't think I know enough about finance to move the needle. As for big-company equity, I'm happy to take RSUs in a FAANG , and sell them the day they arrive. Nothing radical there.

by et2o 7y ago

tempsy 7y ago

If that were true literally no HN reader would work at a startup, but we know that isn't the case. Or take any compensation in the form of equity in one company, even at a large one.

pm90 7y ago
That would be true iff compensation were the only reason for joining startups.
RussianCow 7y ago
First of all, financially and statistically speaking, working at a startup almost never makes sense compared to working at a FAANG or similarly high-paying company. (There have been countless articles and discussions about this on HN, so I won't rehash the arguments.) Second, there are other reasons for working at a startup that have little or nothing to do with money (it's more fun/rewarding, you learn more, work/life balance, etc). The latter doesn't really have a parallel in investing unless you only invest in sustainable/ethical companies or something like that, but then the conversation about maximizing profit and beating the market is kind of moot anyway. > Or take any compensation in the form of equity in one company, even at a large one. Public stocks are liquid enough that you can sell them as soon as possible and immediately "cash out", so any equity-based compensation at a public company can reasonably be treated as cash. The same applies to a private VC-backed company with an upcoming IPO, though obviously there is a little bit more risk involved there.
greglindahl 7y ago
That doesn't follow at all. I work at a tech startup because it's a business in which I think I can add value. I don't think I know enough about finance to move the needle. As for big-company equity, I'm happy to take RSUs in a FAANG , and sell them the day they arrive. Nothing radical there.