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Re: The learning cycle for a newbie trader
Greed?
I know several people who make several hundred percent a year and do it consistently. Its called ambition if you do it the right way, with skill, greed if you do it the wrong way.
Please everybody - we can not compare ourselves to funds - and I mean that in a good way. Maybe in fx we can given liquidity, but not stocks (which I mainly trade). Anyone who has worked in the finance world knows that funds dont usually do that great as a) they move a lot of money - they cant jump into a dip, and sell on the spike the next day; and b) they make decisions by consensus (with the odd exception like Tudor Jones who does about 100% a year but would do more if he had smaller size - and he has admitted that); and c) they are risking their jobs if they underperform the indices and that makes them conservative.
ANY individual moving relatively small amounts of money (i.e. less than $5m) and not making decisions by consensus and who isnt being compared to a benchmark should way outperform managed funds.
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Dave
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