Real Conversations: How the Smart(est) Money Invests
- Thread starter dealmaker
- Start date
Your statement has nothing to do with the video. Video conversation is value vs momentum if, and where they should intersect....
PS TradeCat I noticed you have recently joined elitetrader and have been responding to many threads with one theme, negativity. Are you marketsurfer?
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The average smart money/investors...kind of essentially get nowhere in the long run.
They barely break even after inflation, fees, taxes, etc
If someone wants real performance, they have to take the risks -- and have the skill, wisdom, experience; Not just gamble.
Thank you for sharing. Always great to hear what other traders do.
Instead they buy-and-hold where a 50%+ drawdown could happen at any time? Something that could be avoided by prudent use of options and futures?
You're right. And every successful investor (read "not gambler aka trader") is wrong. You do you.
Actually hedging downside risk of a buy and hold portfolio using options has been pretty clearly shown to be suboptimal in the literature. You pay exactly what the fair value of those options are, plus spreads and commissions which are where your losses come in over simply buy and hold. No free lunch in that part of the markets.
Not sure what your second sentence means, but I expect your knowledge of trading is on par with your command of the English language. And by your logic, Jim Simons is inferior to a naive investor who let his portfolio suffer two 50% drawdowns and basically no return over a 10 year period.
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