:eek::eek::eek: I was not expecting that!!!! Why are they so many to fail : tons of these? Does it mean tons of their traders trading OPM fail? Or I am missing something on the reasoning.
Most emerging hedgefunds fail because they cannot get the critical mass of AUM to generate fees to pay their expenses. They can't get the critical mass because they 1. don't have the marketing savvy to build confidence in their strategies 2. don't have the returns to give investors confidence in their strategies Once you get to a critical mass, it's harder to fail but more likely than a comparable operating business because your investors can lose confidence in you quickly. If Lumber Liquidators was a hedgefund they would be done by now.
Maybe there are some who only trade their own money. But among those who are known most definitely trade OPM and failure rate is exactly why. Beauty of this scheme is there is no need for an edge to make a lot of money.
90% thing has nothing to do with the current discussion.....nor the title of the thread. So according to you, your "perception" of the markets are nothing but numbers?.....ok. Then I have a question: Just because you cannot see, does that mean everyone else is in the same position?
Excellent points, I used to day trade flying by the seat of my pants, chasing price around, now its the complete opposite... price comes to me now and taking trades easy
In a sense, if you read between the words, looks like yes. On the other side of the coin would be limitations. We all have limitations, the question is why?.....again, how deep do we want to go? Yes but this so called ("the intention" to know how) wouldn't be in the initial starting point for most. Its more like a discovery process. So, sort of like a chain event if you like, one leads to another. "ultimate success" will vary according to each person based on how they perceive. On you note of day trading (stressful and risky trading) is just a perception from your perspective based on your understanding. For those who are more advanced, they don't perceive the same way as you do. Maybe you have reached your limitation?
Luck is nothing but a word, yet, it cannot happen to anyone else. There is no such a thing as luck, this is only looking at the surface.....again, all meant to be.....at the right time, the right place, the right person. (with the right conditions the effects will follow)
I learned that people who want to achieve something don't have luck. They do certain things to achieve what they are aiming for. If certain things happen that favor him it was part of the expectations that he had. Luck means to me something that happens but that was opposite of what was intended to be achieved or to happen. An example is: I was long and prices went extremely quickly short. I wanted to double my position, but hit by accident the button to close my position. That was luck because I had no intention at all to close my position. Only bad luck exist. Bad luck is when you intentionally do something and then things go wrong. An example is: I go short Swiss franc and then the opposite happened. My intention was to make money going short, but I lost hugely because the market did the opposite of what I expected.
There is a difference between reality and perception. I speak of reality and you only see what you want to see.