So the term hedge fund is a misnomer? That makes sense, as hedging has a cost and thus reduces average returns.
Didn't Timmay's DVD teach you everything you needed to know? Why are you wasting your time here instead of banking $$$$$?
I think thats close to true if you are a discretionary trader, but if your trading on an algorithm and using automated strategies thats probably not true. I know of a very successful trader who uses nothing but automated strategies and he has well over 100,000 lines of code in his system, which performs very well.
I use investopedia also. I've found wikipedia to be a huge help also in learning the details of some instruments, but having someone to just ask about things you dont completely understand is valuable also. I find boards like this one infinitely valuable for a huge amount of topics. theres no one smarter than a huge disagreeing mass of people. thats why the market discounts things early. personally I've learned more things more rapidly using forums than any other method.
'Your financial advisor needs a financial advisor' well said! HF fleece returns from investors and still average out only 2-3% over the buy and hold returns.
This is close. I would put it this way: If the trader cannot clearly explain what "market inefficiency" he is exploiting... And what "competitive advantage" allows him to do so... TO ANOTHER EXPERT TRADER... Then you have precisely NOTHING.
In this case the "competitive advantage" is expertise in technology... But this guy... Should be able to explain precisely what "market inefficiency" he is exploiting... Or I would not take him seriously.
You took my analogy, and made it a theory. Your wording is nice! Here is another way to look at things. Imagine that your HF or financial advisor is a boxing/martial art champ. Now who do you want to be on your side: 1. Bruce Lee with his fancy moves (but probably no punch in reality) in a movie, or 2. Mohammed Ali with hard hits that lead to KOs. 1. is movies, but 2. is the real thing. I want the real thing on my side.