Why it's so hard to beat the market (Wisdom of Crowds)

Discussion in 'Trading' started by Steve Ladd, Nov 10, 2020.

  1. Alexpung

    Alexpung

    How do you beat something that is so vague and not well defined?

    Oh you beat the S&P 500 performance over 5 years? You would be better longing QQQ.
    Oh you beat longing QQQ? TQQQ crush you.

    Oh you beat TQQQ? You must be lucky and just longing a bunch of beta and run good.
     
    #11     Nov 10, 2020
  2. Handle123

    Handle123

    #12     Nov 11, 2020
    beginner66, birdman, wave and 3 others like this.
  3. sef88

    sef88

    Buying an index alone is not a fool-proof plan. There could be lost decades (think of Japan, US in 2000s, Sngapore in 2007 till now). There could be massive drops and you may require the capital at worst possible time which require you to liquidate when things are undervalued. In a nutshell, you shouldn't buy the index blindly. Instead, diversify across asset classes and strategies. That would help you to avoid irrecoverable losses.
     
    #13     Nov 11, 2020
    comagnum and Steve Ladd like this.
  4. Dazz

    Dazz

    that's nice, so what answer to you have to offer as to why traders fail?
     
    #14     Nov 11, 2020
  5. Dazz

    Dazz

    In terms of being most shit upon, that would be Alex Wasileswki for his scams in Puretick (voted #1 scam of all time by Elite Trader),


    his corrupt dealings with felons

    (

    and his corrupt Dow Daddy room

    (.

    of course then followed by 500 more sites (https://www.youtube.com/channel/UCEM7BtG8lO8t0J5qUmwwgXg/videos?view=0&sort=p&flow=grid.).

    And ps_ Calhoun is intivted to re-butt comments made against him and his sales room sites, We could discuss Felton as well.
     
    Last edited: Nov 11, 2020
    #15     Nov 11, 2020
  6. Dazz

    Dazz

    I have traded with 3 robots in real time, forward walk trading that aver $1189/d for the last 173 days. Making $205K in 10 months seems like beating the vague and not well defined.
     
    #16     Nov 11, 2020
  7. Dazz

    Dazz

    you had 26 posts yesterday alone - same as the day before and before - you are a cyber stalker - get a life - stop stalking us.
     
    #17     Nov 11, 2020
  8. %%
    ONE of the better benchmarks/SPY/S&P 500;
    has no commissions/no slippage, so thats another reason.
    AND then there are plenty players like the couple that called in to Dave Ramsey.The sold this year in MARCH\ 2020\pretty close to the lows...……………………………………………………………………….
    BUT they had $900,000 left off a bad mistake.
     
    #18     Nov 11, 2020
  9. "Net of transaction costs/fees, the average fully invested market participant will exactly match their benchmark, if it is the perfect benchmark for that investor (an impossible ideal but close enough to reality IMO), IF by average you mean "arithmetic mean". If however you mean "median", it can deviate quite a bit.[/QUOTE]"

    If the median participant underperforms the benchmark, then most participants underperform, and the relatively few that overperform must overperform more than the underperformers underperform. If such skewing is significant it could help solve the mystery of the relatively few overperformers.
     
    #19     Nov 11, 2020
  10. newwurldmn

    newwurldmn

    because you can instead invest your money in the market and go sit on a beach and drink mohitos all day long.

    the market represents some aspect of your opportunity cost.
     
    #20     Nov 11, 2020
    eternaldelight likes this.