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by doovd 1640 days ago
How do you answer the following inevitable questions?

If you have good trade ideas/signals, then why do you not use them yourself? I assume you do not use them yourself because it' does not make sense to share your edge (if you have one). If you do not have an edge, how can you be offering "trade ideas"?
2 comments
kasey_junk 1639 days ago
These are common questions people ask that haven’t actually been involved in generating trades professionally.

But people who have don’t ask those questions because finding edge in the markets is actually pretty easy. Finding edge that is scalable is the hard part.

For professional traders it doesn’t make much sense to engage in all the small edge trades because it won’t pay more than your opportunity cost if you did something else. For retail traders that constraint isn’t true.

Now, I don’t have any idea if this particular product actually offers good trades, but it’s not true that as a class you can’t make more money selling profitable trades than you can using the trade yourself.

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doovd 1639 days ago
Well, sure - it could certainly be the case that it's easier to scale selling trade ideas than trading them on yourself - hell there's a whole industry around it (alphacapture). I am somewhat skeptical, especially as this is marketed towards retail who have fewer instruments to guage themselves if the product their getting actually offers trade ideas with positive expected value or not.
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roguas 1639 days ago
Same could be said about a concept of solo traders. If you are as successful as you claim why don't you run a fund? However, a lot of people do solo trading as its more of job/hobby where the only thing you risk is your capital. Plenty of people don't have stomach to deal with others lifetime savings? (or even potential of such person in your client pool)

Its different. Not everything scales as nicely and dealing with responsibility is going to become a burden soon. Here you are selling your advice, most likely all traders have similar access to this advice and can perform trades with their own judgement.

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doovd 1639 days ago
> Same could be said about a concept of solo traders. If you are as successful as you claim why don't you run a fund?

This doesn't make sense though, running a fund is not necessarily natural progression of being a successful trader. But if one says they have a real edge that the average retail trader can monetize, then why doesn't one just take advantage of it themselves as this is effectively the lowest size of scale.

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