Everyone knows the market is rigged, but I think I've figured out a way to beat it. First off, you need to change your career. If you're fortunate enough to not be living off chicken tendies in your mom's basement, you are either gainfully employed, or have some crappy job in retail. Either way you need to adjust your shit. For the former, you will have to downgrade your career, and for the later you are probably SOL either way so maybe stop reading now. Now you need to become a teacher. But not just any teacher. You need to get into a nice Manhattan private school at around grades 5 through 8. Now once you're teaching these little rich shits Social Studies or what have you, you introduce the "stock market" game. We've all heard of it or done it when we were kids in school. You give the kids paper trading accounts, and whoever has the most money after a few months, wins. Now the catch is that all these little kids have hedge fund mommy and daddys that will be giving them sick stock tips so they win the candy jar at the end of the game. Now you take these stock tips from your students and fully leverage that shit on options with your measly teaching salary. And that is how you beat the market.
Although a cunning plan, first I've got to become a teacher, find a similar rich kid school work elsewhere become the best to get employeed by rich school and have money available to leverage to make this worth while some 15 years down the line. Yep, back to college for me, likely faster than I'm currently making it. Thanks
You just kind of described the plot to the movie: The Taking of Pelham 123 [2009] Where John Travolta's character loads up on Options before causing an event...thereby making him a killing -- no pun intended
There are 3 ways to "beat the market". 1. Trading on inside info 2. Front-Running 3. Disciplined trading of market correlations. #1 and #2 are illegal. Good luck with "trying to get away with it". #3... a skill which can be learned.
It all comes down to Information and Risk Management. Depending on the information... You got an Advantage or not. Now if you have an advantage... Keep the risk of ruin close to zero. Milk the advantage till it works... Markets are kinda evolutionary by nature. The public can never catch the form... Otherwise the game will cease. Information can be quantified : First-> Maximum Entropy Principle -> 1/n A coin has 2 outcomes, either tail or head -> 1/2 1/2 probability is 1 to 1 odds for the game to be fair. Guess what ? You know this coin, actually P(Head) = 2/5. So your informational advantage is 5/10 - 4/10 = 1/10. If other don't know it, then the payoff will be 1to1. That's when you come and bet 10% on Tail. Till others get to know it's biased .... Bet more tail and price it fairly.
So... who says the hedgefund is correct? And also, can you copy their trade incl fee structure and leverage? A lot of hedgefunds go against each other as well... as stated before in several ET threads: the exit strategy is equal if not more important than entry...
Some years ago my mentor (in fact he was just a good man who helped me and gave useful pieces of advice) told me that it's no need to beat the market. The only chance to win is to flow with the price. Now when I see that I have to fight, I don't enter trading, but wait until the conditions become more favorable. It works