[Someone1234]

That sounds pretty fun. But after you get the basic workings right, isn't it just a latency war with other trading bots (meaning the lowest latency gets in the most profitable trades)?

If you had a uniquely good trading algorithm isn't it effectively just trading by hand but faster? And related question, if you're doing a lot of trades, wouldn't trading transaction fees eat you alive?

[SirLJ]

Not really, because I am not into HFT, so latency is not a problem for me... (I don't have the money, 100s of millions for infrastructure to compete with the big boys)...

Sure, I can do it all by hand, the key here not speed, but automation... I rather be fishing or drinking beer by my pool instead... Trading fees: 5$ fee on $50k/$100k position is frankly irrelevant for example...

[Someone1234]

Have you been able to beat the index funds historically?

[SirLJ]

Sure, double digits return per year on average... making money in the market with 6-7 digits account is easy, the challenge is to make similar returns with let’s say 100M+ account, but I am not there yet :-)

[deanmoriarty]

Any book recommendation? I come from a "boglehead"-centric approach [1], stating that the market is so efficient that it's virtually impossible to beat it in the long term as a mere mortal, so one might as well just buy indexes and get the market return, hoping that in the long term capitalism will continue thriving. And that's what I've done, fully investing my high 6 figure (soon to be 7) liquid net worth into index funds.

The only exception to the rule would be if one has some sort of technical advantage (e.g. HFT infrastructures) or "insider" information.

Was curious to hear if you have any resources that in your opinion could make me change my stance? Thanks

[1] https://www.bogleheads.org/

[SirLJ]

OK, here is one book for you: More Money Than God by Sebastian Mallaby

https://en.wikipedia.org/wiki/More_Money_Than_God

My message is this: do not settle for the average - everyone can be a doctor, lawyer, developer, speculator, you just need the drive and to put the hours...

Passive investing for me is a big mistake, because it ignores the risk management, especially for small accounts (less than few millions), people just cannot afford to be losing money for extended periods of time, just look into Japan's Economic Bubble and Nikkei index, every passive investor in it is still at about 50% loss for almost 30 years and counting...

To make money in the stock market, you have to have a system that makes money, not only on the way up, but on the way down as well... For me, personally, my money are too important to leave them to such a "buy and hope" investing strategy...