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Yes -- Fund managers will generally track a broad index and charge a fee. Short term self directed traders mostly do even worse than this however. It's a question of relative underperformance & not losing an entire yacht. Edit: With interest rates so low, a secure investment that pays...

*Agreed* Key phrase "without a real edge". All strategies without an edge converge to random minus costs.. disciplined or not.

Paper trade for a long time & be prepared to accept paper trading ruin as a relative success.

Get professional advise from a licensed advisor. Do not take advise from the internet(s).

Figure out the likely next dividend for each index constituent. Weight it by the stock's market cap. Have hours of fun trading the ETF against the Index Future against the Basket of Stock... Ah .. except that's already been done.

And you think that this works when flipping a coin too? If you are betting heads, and you get 2 heads in a row, you should keep betting heads .. but if you get one tail, you should stop? And you think that this "leaves you with many small losers, many small winners, a moderate amount of...

Which results in a large number of small losses, and a small number of large gains. If you're edge is zero, then you net to nothing, minus transaction costs. Of course, if you cut winners short and let losers run, with zero edge, you still net to nothing minus transaction cost. Perhaps...

* Some people might just spend the money.

Argh .. understood .. Can leverage technology, but not compliance frameworks.. I stand corrected. Cheers.. :)

Timber Hill != Global market maker?

A broader question might be: what do you expect charts to do for you? or Do you believe that low-cost-off-the-shelf charting is the secret to wealth, that "they" don't want you to know?

Only interesting if you can hedge it, or get out of it reliably. Any limit order that does not cross the spread is passive. Range bound when price trades around a mean. Not range bound when trending. [And trading trending prices is reserved for morons, liars, lucky punters, and insiders ...

Wait for the ack.

getting keen here for some hot "natural spline" mean reverting action. good times.

mean

Any super-secret tips for determining a trad-able mean?

hahaha .. got pairs?

Sure .. Quote 1.51/1.69. Why go narrower? Just pip the other guy. If you get evenly hit, you make ((1.69-1.51) / ((1.69+1.51)/2.00) = 11% Which is a lot... Buy if you get stuck on one side, you're kind of screwed .. but, you're in at 5.5% better than the midpoint. Ideally you...

And yet some "traders" use technical analysis to exploit repeating patterns, and apparently become extraordinarily wealthy, driving fast cars and attracting beautiful women .. because they such savvy financial geniuses. Big swinging di*ks even. But, of course, TA does not work in backtest...

- Do you need to be a marketmaker to earn the spread? No. But no commissions & easy short sell rules would help. - Whats the risk in trading in such a way? That price moves before your hedge is done. - how do you do it? Is it easy? Limit orders around fair value & fast market orders to...