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It is difficult to make a living but you can make money day trading. Market isn't the fastest. You can capture value on big events like the Boeing issues and other events. If you have risk appetite you can write options and pick up nickels in front of a steam roller.
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Poker isn't gambling, but a game of skill. Are there many people making a living actually gambling on something like craps or roulette.
Making a living on poker? Absolutely. Making a living on craps or roulette? Not mathematically impossible, but highly improbable. How do they get their edge?
It is difficult to make a living but you can make money day trading. Market isn't the fastest. You can capture value on big events like the Boeing issues and other events. If you have risk appetite you can write options and pick up nickels in front of a steam roller.
They have a reason to make that article: there is a lot of companies fooling the Brazilian people over this. I'm a Brazilian software developer for the financial market. I also made some financial courses on the same university that the authors. Brazilian stock exchange market has exploded in the last years and most of my friends decided to 'work' as traders. None of them with prior knowledge or experience in the mar…
You’re assuming a complex strategy is needed when a simple one can easily suffice: simply pretend that you executed the trades, give the clients their profits, and keep the losses. In other words, the broker can take the opposite side of every deal and keep the spread and commissions. If, indeed, the client is trading based on no information whatsoever, then the broker wins and the client loses.
To improve this, the broker can throw out the best performing clients, since they might genuinely know what they’re doing.
I’m not suggesting that this is what any particular broker does, but it’s a strategy that works very well, at least in principle.
So while certainly not easy, it's possible.
Trading suffers from some of the same problems of web development: few barriers to entry leading to an abundance of low-quality participants, and the mostly autodidactic nature of skill development.
Like 10x engineers, 10x traders exist. But getting there requires thousands of hours of deliberate practice, discipline and conscientiousness - traits typically not found among the get-rich-quick crowd who discovered trading after clicking a Youtube ad for forexbillionaredaytrader.scam
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That's not so simple because swing trading is not looking for Arbitrage. 90% of traders lose but a good portion of us make money. It is about building a system which works in bull and bear markets.
My firm uses a similar system that hedges long and short baskets and can confirm that hedging is really the only way to swing trade profitably in the long term.
My returns are not too high, but much better than bank interest rates and probably much below professional traders. The only thing stopping me from earning my EMIs or more income is the allocated capital, which is limited to stay in the game long term without losing my shirt. Even though I had a profitable strategy even before I started trading profitably, it took me 2.5 years to align my comfort/tolerance level with risk management. i.e. its not just about having a profitable strategy. I did minor tweaks on my strategy only 2 times in all those years.
I do not doubt that many fail with day trading. In my case, day trading is stressful and takes anywhere between 5-8 hours of my time daily including time spent outside market hours. It is stressful, exciting and frustratingly boring while waiting for opportunities. And to add to the stress I freelance too, mostly before trading hours and some after. Doing both feels like slogging everyday and on some days I have an internal struggle about increasing the trading risk. And there are times where other traders will (unintentionally) gaslight by telling me how their monthly returns are equal to my annual returns.
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Because that is not a representative sampling of the day trader population. Assuming the techniques of the study were sound, at best we can conclude whether or not day trading Brazilian futures is a sustainably profitable undertaking.
Wouldn't you need a basis for believing that day trading Brazilian futures has unique properties not present in other markets to assert this? E.g. the volatility or spread is significantly larger than European futures or the information flow is more tightly de/regulated etc. Is there a basis for believing this?
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Renaissance Technologies did not use algorithms to beat the market... they used tax schemes to do so: https://www.bloomberg.com/news/articles/2019-04-10/renaissan... When you factor in the money they saved from dodging taxes and how they managed to compound the growth on that money, their returns end up being no more impressive than any other hedge fund. Even if it turns out that what they did wasn't illegal, the bul…
The article says that this scheme occurred during specific years. During the 1990’s they also beat the market. “Medallion, which is open only to current and former Renaissance employees, has generated returns of about 40 percent after fees for decades by using computers to spot market patterns. It’s distinct from the funds Renaissance makes available to outsiders, such as the Institutional Equities Fund. Medallion ea…