Re:Don't Steal Money from Day Traders Before They Lose It
by vlasev on Friday September 07, 2018 @02:37AM
(#17932309)
If you reduce the Formula 1 car's performance by as little as 25%, you would be able to get a much much higher mileage. Those things are so optimized that they break down much faster and easier.
Re:Don't Steal Money from Day Traders Before They Lose It
by saosebastiao on Friday September 07, 2018 @09:48AM
(#17934186)
That's exactly the point. If I were trying to beat the infinitely compoundable returns of the whole market over a long period of time, I would have to make monumental changes to how I operate, and those changes would drastically alter the level of returns that can be realistically achieved.
Comparing returns between income-oriented day traders and compounding-orieted mutual funds is like comparing top speed between f1 cars and endurance cars. You can certainly do it, but you're not doing anything worthwhile with your time by doing so. My strategy has high returns but low capacity and no compounding potential...simply put, I'm not competing against the S&P 500, I'm making an income. In fact, most of my excess returns end up in SPY.