I mean, that’s the ideal case. I’m skeptical that my own efforts, or those of most people, would lead them to profit substantially more than they could have by applying their energies to any other line of work.
This is partly based on my own experience doing a mini history of COVID 19 and the stock market, when I was really convinced that the market had behaved irrationally. It was remarkable to see how long it took me to find disconfirming evidence that made me see that the market was just thinking differently. Based on that experience, I’d want to see a whole lot of work sunk into any attempt to find alpha before I was prepared to believe it was real.
I think that “any other line of work” is putting it too strongly. The thing that most appeals to me about trading is that its returns can scale faster than the time put into it: if you have more money, you can invest more money, unlike an office job that gives you small raises, but still consumes all your time.
It’s the difference between owning a business and working for one. But trading is not the only way to do that. There are many other sources of passive income available, and some of them take even less capital than trading in the stock markets.
I mean, that’s the ideal case. I’m skeptical that my own efforts, or those of most people, would lead them to profit substantially more than they could have by applying their energies to any other line of work.
This is partly based on my own experience doing a mini history of COVID 19 and the stock market, when I was really convinced that the market had behaved irrationally. It was remarkable to see how long it took me to find disconfirming evidence that made me see that the market was just thinking differently. Based on that experience, I’d want to see a whole lot of work sunk into any attempt to find alpha before I was prepared to believe it was real.
I think that “any other line of work” is putting it too strongly. The thing that most appeals to me about trading is that its returns can scale faster than the time put into it: if you have more money, you can invest more money, unlike an office job that gives you small raises, but still consumes all your time.
It’s the difference between owning a business and working for one. But trading is not the only way to do that. There are many other sources of passive income available, and some of them take even less capital than trading in the stock markets.