Hi everyone, this is my first post here. This is a question I've been asking myself for a long time now. I know that theoretically it should be possible to beat the market, but why hedge funds don't make it? Can an average person beat the market with trading? I've seen some videos of Ben Felix who says that beating the market consistenly for years is nearly impossible and not even Warren Buffet has beaten the market in the last years. The thing is, hedge funds have everything available: smart people educated in the subject, supercomputer etc, but they still fail. I don't want to discourage everyone, I'm just a newbie.
Hi Abubble, welcome ! Hedge funds and retail traders are something completly different. Both have their advantages and disadvantages. A retail trader cannot manipulate and control a market like some HF have done (are still doing?). But as a small retail trader, you can be in and out of the market within seconds, with huge size relative to your account balance, which allows your account to grow at vastly different rates than the returns of your average HF. But even if I prove to you that there are countless retail traders out there who make a good living from trading, it still wont help you alot. The only one who can can prove to you that YOU can beat the market are... YOU. So here my advice: if you want to do this as a hobby, or just try this stuff and see where it takes you... better look for something else. But if you are a person who can really work hard, who is willing to put in hour after hour (after hour) of work into this (and it still can take many years), then you should go for it. You will go on a crazy journey on which you will learn so much about trading, the markets, the world, humans, and, most important,... about yourself ! Enjoy your stay in the world of trading !
Thank Callumbus! I know it takes a lot of work, that's why before diving into it I wanted to see if it's at least worth it. The thing is I don't know where to start, I also have other problems right now let's say, but since there is a pandemic it's all kinda frozen right now so in the next months I should have time to dedicate to this. You're right, that's a big advantage, I also thought about the fact that hedge funds care more about commissions than performance. But anyway, from where I should start?
1 Objectives 2 know yourself. Personal issues must be resolved. You need to know how you think, feel and react 3 big picture market knowledge 4 finding low risk ideas 5 manage the business