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I was always under the impression that the reason retail investors can succeed lies in the difference in volume. A retail investor finding a niche that earns th
by xboxnolifes 3y ago
I was always under the impression that the reason retail investors can succeed lies in the difference in volume. A retail investor finding a niche that earns them, say $100,000 in a year with moderate risk, is great for them. This may not he worth looking at for an institutional investor if that's the cap for the volume and they're trying to invest $100,000,000.
A retail investor may only need a small, fertile, family farm. An institutional investor isn't even looking at something under 100 acres.
I don't really know, not my field.
- sidlls 3y agoThe people GP was talking about--keeping super complicated Excel spreadsheets and whatever--are almost certainly not investing. They're day- or swing-trading, playing "technical analysis" games, and engaged in all manner of snake-oil "strategies".
- xboxnolifes 3y agoI'm also talking about day-trading here. A retail investor might find worth in being a market maker for a few things which each have a daily volume of $25,000 and 1% margins. An institutional investor may see that $25,000 volume as a rounding error.
- jterrys 3y agoYou're on the money. Strategies don't scale. This is an observation many outsiders (and disenfranchised people with the market) often miss. You can do really dumb things as a retail investor and get away with it because you don't impact order flow. It's arguably harder to generate 1% of 100,000,000 than 1% of $100,000.
- deleted 3y ago[deleted]