really? i think there is a limit to the number of people willing to give you money. but no limit to the number of people willing to take it.
walterjennings give a person 10k and another 10m. who do you think will double their money first? obvious. its a matter of liquidity, opportunity and psychology. Not in all correct. Retail sector is dissadvantaged. this advantage can be shut down only from some capital value (place on exchange leasing ,cheap transactions ) Retail sector loss is more high as insitutional GS ,MS,MER would lose last as have advantage in market-making ,foreign money (GS limit risk to 2 % in any day of company capital ) & Cheapest lease of thee place on exchange for ZG on ECBOT some 50-60$ per month ,but that limit your acitivities to one instrument (er -some 250$ per month,EN - more as 800$) PDT rule demanded 25 k$ in each day (Only by canadian questrade can avoid this rule) Prop firm make high margin for stock possible Trader ,which will have high profitability and will avoid risk ,which can be avoided must use complex instruments ,depend from situation . With multiple instruments , low t.e.,place on exchange ,high margin on stock this operator (if he good) would winn by mass of retail operator Suspect minimum capital for this case must bew more as 50k$
With billions of dollars to invest, you just can't buy or sell in a single day. This increases risk while decreasing profits.
do you think with all the retailers making profit trading ES and other index futures, would a fund manager like Warren Buffet ever think about spreading out his $$$ into future contracts and take the profit from the little guys?? If this is not possible, what is stopping him or any other fund manager from doing this?
I think 1Million ES cts would move the mkt just a little. Tough to move that much money around even in futures.
but even if it was just a portion of his money...i mean, futures has such huge leverage compared to regular stocks... why wouldn't fund managers allocate huge portions of their funds to this...at least to the point of being able to influence futures to the highest degree. Their returns would reward them 10 fold.... is this not allowed??
In this chart I'm trying to show how I see return on money ... I'm not talking about trading but doing business or investment with the money ... I think to a point the more money you have the more return % you can generate with that money (think about it how many times have you said if I had 20 or so Million dollars I would do this and that with the money) ... but after your money increases to a point it becomes very hard to create great returns (almost all billionaires want to become richer than the other billionaire on top of them, specially that mexican guy [the third top billionaire] who really wants to beat warren and gates ... but they can't) ... but then again once your money starts increasing beyond a greater point you become so powerful that nothing can stand in your way ... you can literally buy and sell countries let alone lives ...