ValueNZ I know you are just starting out so I go easy on you but age doesn't mean you should jump to poor conclusions as you have on several occasions or take things out of context.
Don't go easy. My age is irrelevant I just mentioned it in an earlier post because I didn't want Joshuatree taking what I said as fact since I know younger people can be quite ideologically driven, leaving it up to him to decide what he believed in my post.
I will answer your 5 points above in order.
1) I didn't say it's not fair I said it's not relevant as the S&P 500 is just one asset class. Most prop traders trade multiple asset classes.
It's totally relevant since if you are a trader and unable to beat the SP500 over the long term then theres zero point of trading. I would suggest most traders (also investors) fit into this category. The fact that proprietary traders trade multiple asset classes is totally irrelevant, it's all about the opportunity cost associated with not being invested into the index. If you're making 5% p.a trading soybean futures, the opportunity cost is the difference between what you would make in the index vs trading.
2) Those returns are expected of prop traders within institutions. Question it all you like but you just don't understand it. I worked on four different trading floors around the world over 20 years and these returns are conservative and common place.
I understand it perfectly well. If you were able to make 100% returns consistently without risk of total loss of capital you'd be richer than Elon Musk in 18 years starting from a million 1,000,000*2^18= 262 BILLION. Why would anyone in their right mind work for an institution if they could make 100% returns. Seriously.
3) Yes for some it is, for most it's not & again you obviously don't understand what a prop trader does otherwise you wouldn't question this.
IMO short term direction of prices in markets are practically impossible to predict. We'll just have to disagree
4) Everyone can get lucky some of the time. But if you make a decision & that decision works out, no that's not luck, that's a good decision.
I made the decision to put my paycheck on black it worked out. That was a good decision!
5) You are misquoting me. The information I referred to mentioned data. I.e macro economic data which quite often isn't reflected in a chart or sometimes stocks or other markets are slow to react or don't react enough etc.
Quote:
Originally Posted by
Daytr
More often than not I ride an index higher until the chart or data is telling me its maxing out & I will take my win, sit back for however long it takes to correct within the chart pattern then go long again. Or I'll halve my position and reset in full lower.
You really need to change your attitude. Happy for you to ask questions, but you make some very poor assumptions & also paraphrase out of context. I am happy to be challenged on anything but at least be accurate.
You are basically suggesting I am making things up. Get some real world experience before perhaps thinking you know what happens in an industry you have never worked in.
Behavioural economics alongside basic math is good enough for me to know that anyone who can make those sorts of returns you claim would NEVER work at an institution.