So let's assume that a trader has indeed

[Overnight]

I'm sure there are plenty of retail, private, traders in the world....who are able to generate much greater than 20% annualized returns all throughout there trading careers/lives.

Oh, you are SURE about that. But there are no names you can come up with. So stop shittin' on Buffet.

 

[DaveV]

I ... $25mm with 2/20 and a 10% return is about $3mm/year before expense. Would you manage a business with investors for that?

How does that that calculate to $3mm/year? Shouldn't that be $1mm/year, or am I missing something?

 

[Jzwu2017]

she was the cio of alliance.
She left to start arkk. She’s literally made a billion in management fees. If that’s a one trick pony, What are you?

You don’t understand Wall Street.

LOL all the mutual funds make billions from management fees and yet very few beat the stock market index. Sounds like you admire those fund managers. You can invest with them.

I have heeded Buffett’s advice and put all my retirement money in the SP500 index with a 0.1% annual fee and I am doing better than 90% of the mutual funds out there.

 

[vanzandt]

You don’t understand Wall Street.

"you just don't understand how the stock markets work".


https://elitetrader.com/et/threads/the-robinhood-rally-continues.345342/page-2#post-5120929

 

[M.W.]

You lost me right there. What a bunch of crap. If you wanted to do primarily good in this world you would have never considered doing it in finance. You would right now be helping to build an irrigation system for free or minimum wage or build a school in Mongolia.

Good question. And very valid reasonable points btw.

I guess initially when I started trading it was just about me. But as someone who has bettered themselves as a person in order to become a better trader. Yes, you read that correctly. I basically became the opposite of an ugly, mean, selfish person not the exact polar opposite but I'm still working on getting better.

Now. It's about having a bigger platform to do some good and help people.

I want to be the first billionaire hedge fund CIO who donates 10% of his net profit to "small communities" in need and as a stipulation, this would have to be agreed upon by all incoming investors, of course. Long story short: I expect to beat Simons' ROC track record.

That would be so fucking awesome.

 

[M.W.]

Lol, 20% over such long period IS great AND magical. If you don't recognize that then you seem to be ill informed. Can you name even 3 other titans who beat his record?

Warren Buffett's fame and recognition is greatly overrated.
He has generated an annualized return of 20%...while that is good, it ain't great or magical. He manages money and buys/invests in companies. Nothing divine or supernatural about his talents.
Why are we talking about an investor anyways on a trading forum?

Cathie Woods too is also overrated. She boasts about her one or two year track record during a bull run when everything was rising delusionally. Then her record crashed horribly.

All of these types of people got rich by managing money, and recruiting more and more public money. And more money coming in.
In an actual trading/investing competition....I doubt they would be anywhere near spectacular,

 

[Handle123]

I was working toward starting a hedge fund with a buddy of mine few years ago, he would run most of it and me in background doing automation and theory. He is horrible trader but people person, am very risk adverse, do far better than averages for past 30 years but horrible with people. The more I got involved, less partner would do, my hours nearing 100 a week and his be 10. WTF was I thinking, ended it. My 401k LLC is decent size hedge fund as it is, nice to not have to pay taxes yet.

But it was a wonderful way to run numbers of scaling, I learned a great deal, even some weeks taxed my brain on how to be creative on putting hedges on large positions.

So difficult to day trade size, sort of easy to get in, so difficult to get out when wrong, can't keep tight stops as 2,000 lot during lunch will push markets and get much slippage.

At some point, why get 20% in fees when use to making 100% profits. Didn't make sense so....

 

[newwurldmn]

LOL all the mutual funds make billions from management fees and yet very few beat the stock market index. Sounds like you admire those fund managers. You can invest with them.

I have heeded Buffett’s advice and put all my retirement money in the SP500 index with a 0.1% annual fee and I am doing better than 90% of the mutual funds out there.

the question wasn’t “where should I invest”

the question was “what do I need to start a hedge fund”

two VERY different questions.

 

[Lucas_Paul]

I agree 100% with SunTrader. A minimum of 12 months of trading just that strategy and then get it verified.

it's not so much about time as it is about trade count.

Time is different for different traders. Some make 1M trades during a year, some make maybe 12 only.

 

[Robert Morse]

How does that that calculate to $3mm/year? Shouldn't that be $1mm/year, or am I missing something?