right, that's exactly the sort of investment that'll blow up eventually.
check out the 3yr history of the Bear Credit funds before their implosion. relative high returns and no volatility. steady line up right untill they plunged into the abyss.
risk and return will always be related...
because the risk is much lower???
the return from holding a t-bill is lower than that of holding stocks.
do you think everyone should put all their money in stocks when investing for the long run, even if they get very disturbed by short term losses?
what surprises me actually is that margins haven't been raised on VIX futures since the beginning of their rapid ascent. come to think of it, nor are ES margins.
Actually, talent only accounts for 10%. I have to agree with OP that difference between well enough, talented player and top player is 90% persistence.
Although the way they handled the situation seems a bit harsh (IB perhaps?), they are well within their rights.
Also, you seem a little bit naieve to think that calendar spreads on VIX (which are largely correlated to cash VIX movements) do not require substantial margin.
if a man is drowning because he cannot swim what do you do? rescue him and then teach him to swim, or do you shout at him you should have learned to swim, move your arms like this?
because if they didn't a crisis like this would/could developed into a 1930s style depression and/or a Japan 1990s scenario.
do you really think your own short term trading gains/losses are more important than the jobs and lives of millions of other people?
this is why I hate being...
then don't ask these questions here. check with cftc how regulated commodity accounts are protected. find a broker that's reliable and well capitalized (don't look for the cheapest and/or the broker that gives the lowest margin requirements - the latter would be a negative sign actually) and if...