Can you describe to me a concrete trade which looks like: 20% return on $1000. (All the ones I can think of tend to be just as amenable to professionals). The other issue of playing in the “micro-investment” pool, is typically liquidity is much lower, so costs are higher.
Here is one example. About a month ago I bought the stock ASK:DSK. The daily trade volume is $AUD100-200k. That made it easy for me to buy $10k worth. It is now up 48%. My slippage was minimal—I was able to buy it all at the offer or better with no market impact.
For someone with $10B FUM keeping the portfolio size to 100 stocks would mean that assuming they only bought 10% of the daily trades per day it would take them 3-4 years to buy in and a similar time to get out of the trade. So this stock, which is by no means unusually small, having a market cap larger than 2⁄3 of the stocks on the ASX, is out of reach for the big guys.
You’ve given an example which is already 10x what I asked for, and you could have plausibly done another 5x your size… I’m glad you made some money, but I don’t think this is what I’m talking about
Here is one example. About a month ago I bought the stock ASK:DSK. The daily trade volume is $AUD100-200k. That made it easy for me to buy $10k worth. It is now up 48%. My slippage was minimal—I was able to buy it all at the offer or better with no market impact.
For someone with $10B FUM keeping the portfolio size to 100 stocks would mean that assuming they only bought 10% of the daily trades per day it would take them 3-4 years to buy in and a similar time to get out of the trade. So this stock, which is by no means unusually small, having a market cap larger than 2⁄3 of the stocks on the ASX, is out of reach for the big guys.
https://au.finance.yahoo.com/chart/DSK.AX
You’ve given an example which is already 10x what I asked for, and you could have plausibly done another 5x your size… I’m glad you made some money, but I don’t think this is what I’m talking about