Anybody did a research on this subject ?
I read crazy numbers like 80% but it seems a bit exaggerated.
I read crazy numbers like 80% but it seems a bit exaggerated.
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DislikedAnybody did a research on this subject ? I read crazy numbers like 80% but it seems a bit exaggerated.Ignored
Dislikedyeah jmn, but they are far more prepared than me and you. I think one has to invest years in training/education before starting a hedge fund.Ignored
Disliked{quote} Nope. All you need is the capital to get the needed certifications and the ability to build a client base, and you too, can be a hedge fund. I would also submit to you that it takes years in training and education to be a good trader as well. Look at some the questions on some of these threads.Ignored
Dislikedjust like any profession; you always find 80% or more losers not all bakeries profitable; eventhough we are eating that bread ! of all trades (including hedgies) farmers are the one paying the deer price of failure. waiting for a year for the crop; only to go belly up; is hard.Ignored
DislikedThere is other stuff but i have probably bored anyone reading this already Im just tossing up whether or not to delve into win rates, and leverage in hedge funds etc, as they are very very different to what i see on this forum.Ignored
Disliked{quote} You should expand more on these areas.... It will be an insight to us retail traders... IF we listen... IMO the one reason most funds of any kind fail is due to poor performance (Duh!). But not the blowup your capital kind of performance. Rather, its more like a few consecutive years of negative returns and investors lose confidence and pull out their money.Ignored
Disliked{quote}.. Ok. win rates.. i talk winning days agst losing days not winning trades agst losing trades. (if one has a large s/l and a small t/p then it is easy to have a high winning trade percentage and not be profitable). I have seen countless traders track records and i reckon i know what performance profiles look like. I think i can see what is unusual and what outliers look like etc etc.Ignored
Disliked{quote} I agree with most of what you say. And I feel that main killer is that most retail traders do not have proper risk managment (Which encompasses SL, leverage, diversification). Followed second by extreme short-termism. And lastly, trading without a proper strategy/plan. Conversely, funds and institutions have policy safeguards in all these areas. E.g Policies such as when you are down X% for the month you stop trading till the next month, trade to take up no more than Y% of portfolio, well defined strategy, some have a team of traders each...Ignored
Disliked{quote} or alternative, retail traders would need also capital, and a lot....Ignored
Disliked{quote} Yes I fully agree with you that most retail traders are undercapitalized as well as have unrealistic goals. However for the education aspect I do stand my ground. Basic knowledge such as economics, finance, maths are essential to becoming a profitable trader. Of course there might not be a need to have a phd. But I do view that many retail traders will stand to benefit if they have some of these knowledge combined with pratical trading knowledge. On unrelatd topic, I noticed that you have quite an impressive trading record. Impressive max...Ignored
Dislikedas for the education part: i dont think there is that much practical difference there. one doesnt need to have a PhD in economics to make money trading, maybe a reason why most PhDs make there living teaching, etc.Ignored
Disliked{quote} I include self-education. as retailers we need to educate ourselves, since 99.9% of the "education" out there is garbage. but as I understand what makes us fail as traders (both retailers and institutional) is the lack of TRAINING. we think we're ready because we learned some good strategy, but practically we s**k. as for the rest... sad truth it's high risk business for the average retailer. I wouldn't say it's 100% gambling but close to that.Ignored
Disliked{quote} high risk business...the "education" should then be more focused to open up the retailers eyes that the risk is relative easily adjustable most case. all matter of tuning down the greed, and getting slightly more realistic on what likely and unlikely to achieve with different risk profiles.Ignored