31–40 of 392 posts
What tax do these type of companies pay? I'm gonna guess they aren't paying the "retail" short term capital gain tax.
Why haven’t their gains been arbitraged away? Conceptually what they do seems simple enough; and presumably you just need capital to do it. Hell, their own former employees could theoretically compete against them - as could many traders who would pay to learn those strategies.
So why are they still making so much? I don’t understand why their “advantage” hasn’t been arbitrated away into a commodity business.
1. It's realllyyyy hard to get hired. So many stories are along the lines of "I applied...blah blah... didn't get in" 2. You have to solve over the phone very hard math questions to make it past the initial screening stage. I dunno what comes after that. The highest-stakes gambling events in the world are typically very discreet, invite-only affairs. One that might be close to the top in terms of available winnings h…
So you are doubling your money each year? Do you have a forward strategy to keep that up? Looking for people with good track records is a terrible way to choose traders. See: https://m.youtube.com/watch?v=zv-3EfC17Rc Tldw: meets a person, picks 5 horse winners, gets then to invest. How did he pick 5 winners? Emails 1000s of people, using a permutation per person. The person who sees the 5 wins thinks he has a system.…
But all you need is a bull market to 50-100x your money with 3x funds https://i.imgur.com/PF7XEaR.jpg
If 7/10 past decades are a bull market then odds are you will make good money.
Market neutral strategies are different though.
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https://www.wolframalpha.com/input/?i=3000*%28%28integrate+1....
A calculation i ran to answer this problem shows that if you have $10k and split $3k of into cash that yields 3%/year and the $7k is put into TQQQ, which generates a long-term CAGR of 53%/year, approximates the actual returns of TQQQ .
So this turns the $10k into $1.5 million over 12 years, which is close to the actual result (100% or $10k invested in TQQQ at the start), assuming a crash happens every 8 years (modeled by exponential distribution and based on empirical evidence going back the past 100 years) and and then after TQQQ falls about 70% the $3k cash is then put into tqqq. After crashing, the above formula assumes that TQQQ races higher in order to maintain it's long-term CAGR, so buying the dip helps a lot.
So generally speaking, keeping 30% in cash/bonds equals the result of 100% fully invested if you buy the dip. The downside is if there is no crash you will lag.
There are various tweaks like above to improve risk adjusted returns. It's not that hard to do if you have a basic knowledge of calc and stats.
Earlier quoted context omitted.
It sounds like you aren't really interested in a rational discussion by the second half of your post, but the typical arguments (incl in the post) for are that market makers reduce inefficiencies in the market & provide liquidity that significantly reduces the bar (i.e. make trading cheaper) for retail investors (like you or me) to trade. I think it is generally accepted that society does benefit from a modern and ef…
I don't do stock market trading, but even those who do that I know of, are doing so via companies such as: Robin Hood, E-Trade, Fidelity, Charles Schwab, Vanguard... Are these "market makers" working behind the scenes to facilitate the operation of those retail facing companies? Is Black Rock buying all the real estate also good for (potential) retail investors like me? Because it's starting to feel like we're being…
You probably do, indirectly through an agency agreement, for example a pension fund that manages your money. Or even whenever you just buy an ETF to invest. The costs you're indirectly paying are lower due to the newer generation of market makers that have reduced transaction costs for you.
> Is Black Rock buying all the real estate also good for (potential) retail investors like me?
Investing in real estate for years is not related to market making stocks with a holding period of 5 minutes.
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Earlier quoted context omitted.
With all due respect, what do you do for society?
At my job? I take food ingredients and perform some manual manipulation to arrange them into enjoyable edible form (although the natural gas powered grill and the electric element powered heating elements, via cooking oil perform the bulk of the "work" in terms of watt-hours), and contribute to the maintenence of the facility and equipment that allows that to happen. Per shift (along with 1-4 coworkers) I think I am…
Earlier quoted context omitted.
With all due respect, what do you do for society?
At my job? I take food ingredients and perform some manual manipulation to arrange them into enjoyable edible form (although the natural gas powered grill and the electric element powered heating elements, via cooking oil perform the bulk of the "work" in terms of watt-hours), and contribute to the maintenence of the facility and equipment that allows that to happen. Per shift (along with 1-4 coworkers) I think I am…
Something I don’t understand: Why haven’t their gains been arbitraged away? Conceptually what they do seems simple enough; and presumably you just need capital to do it. Hell, their own former employees could theoretically compete against them - as could many traders who would pay to learn those strategies. So why are they still making so much? I don’t understand why their “advantage” hasn’t been arbitrated away into…
Sooooo hard to get hired here. I’m convinced it’s impossible without a referral or something
