Gathering intelligence here:? that's be a short task! Actually buying at the top is precisely what fund managers are instructed to do-which is why Wall St rips off Joe public
Interesting theory but I am not buying it. Fund managers are rewarded by performance, so unless they are paid a good amount by someone, they are unlikely to deliberately under perform. The real reason they under perform is that they are manipulated by the banks the same way banks manipulate the retail joes. Banks take the other side of hedge funds, same as they take the other side of retail joes.
I once asked a fund manager from a very very large UK fund who was stupid enough to buy at the top of the market and he told me that's what they do- just sayin' -pension funds are rubbish and massively underperform - the whole industry is a joke, totally reliant on dumb new money coming in as a constant flow because people think the tax advantage makes it a good idea
I worked with a hedge fund manager. He was a loser. Fund managers are like retail joes, except they get close to 0 commissions and have more money to play with. Otherwise they gamble like the people here. The banks are the real winners and the real evil in this game. All assets belong to them and they rent them out to you to speculate. But they are on the other side of the speculation and anyone going against them will have a large chance of failure. They can either wait you out or flush you out. Fund managers are not excepted.
Pity the greed machine is killing wages for main street. I make money trading UK options so I don't mind what the market manipulators do,when I'm wrong, I adjust, but when I see 40 years of pension contributions amount to peanuts(not my money) it gets me miffed.
The money is lost one way or another. If you kept it in the bank, the inflation would have reduced it to nothing. There's always the state pension and government support. So even if you have no money, you don't necessarily have to go live under a bridge. It is a system you can't change. Maybe go live in China. They have a different system.
http://www.optionseducation.org Click on that link. Learn. Its free. You will get all your answers. They even offer a free number to answer your questions. Now tell me what industry offers such a free education and support? Talk to Options Professionals Questions about anything options-related? Call or chat with an options professional now. Call 1-888-OPTIONS
But is there another industry that would grab your money as they do ? Mafia, perhaps. But they are not an industry.
I read "Market Wizards 1/2" ages ago, unless there is something I missed, just mostly generalizations than much of anything else, but what it will keep repeating is have a Trading Plan. The elusive "Edge" most talk about thinking have to have one, I never heard of this till last few years actually, LOL. It certainly isn't trading method, more like confidence that been built with education of the markets traded, and years of study of human emotion and catalog that. I think writing down your emotion when first learning how to trade, watching the market and write down what you want to do trading Price Action, cause the 95% are trading this way. By better understanding yourself, you will learn what others "feel" as well and why. People get out of trades cause of fear usually. The Pro's take other side of emotional trades, often times creating the fear, LOL. So many will say systems fail, but the developer failed at adapting rules when Price increases/decreases volatility, that's like saying Price Action stopped working and yet if you look at charts from 100 years ago on Wheat, you be surprised how they look like todays' with exception of cents per bushel. I think it is more of not having rules in place to adapt to changes in action. Options are no different than any other market, if you don't know the rules of the game, you will lose. But I think with options, once you understand how to trade them, they offer much easier way of making money without watching them so often like day trading. You can either learn the Math side, learn price action side of the underlying or both. "How to make money in options", take a good book on charting price action and trendlines, when price comes down to support in an uptrend=Put Credit Spreads are safe play, when price goes to resistance in downtrend=Call Credit Spread, when price shows triple extremes, Head and Shoulders, trade accordingly. If price breaks trendline by so much, get out of the long option and keep short, perhaps this short will cover the loss in long option. I believe what too many do is keep it "hoping" it will come back, which it seldom does. Happy Holidays All
Nice article why most retail investors lose money in the stock market: https://steadyoptions.com/articles/post/general/why-retail-investors-lose-money-in-the-stock-ma-r99