MBB—>trading? Have crushed it with my investments the last few years, think i might be in the wrong line of work

likefunny
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Did you crush it or was it because the market was performing well all around? 🤔

likefunny

So quantitatively what is “crushed” defined as

So you crushed it in a historic bull market? And made one good, if not particularly novel, bet on a correction?

Look out Ken Griffin

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You are definitely someone I would want to be friends with.

Hey BCG OP: as a counter to all these naysayers, look into behavioral finance. Actual real world data obtained from mining every Chares Schwab account shows is that individual traders can generate sustained alpha and that intelligence and trading ability both impact returns.

If you are doing well, it’s absolutely something to pursue, I would recommend leaving BCG to a job with minimal trading restrictions and continuing your run until you have a steady enough income.

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OW1: Yes, a professor at Haas named Terrence Odean made a name for himself by getting the data from an executive he golfed with. Tons of papers written from those data sets, and subsequent datasets that have been obtained largely corroborate the findings across countries/markets.

My professor gave me one of the lightly anonymized datasets to use in my grad studies, it had a lot of personal attributes about the account owner lol.

Serious question, how do you manage with your workload? Any hands off strategies you specifically employ (assuming you trade actively and didn’t just hold long and are taking credit for the crazy bull market of the last few years)?

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Try calculating your alpha to see your actual return above the market. Return= beta * (pct change) + Alpha where beta is the correlation factor with the market. You can find information on beta values online

smart

Bro I think you missed the point. I’m not asking if you can google the definition of alpha. If you have generated sustainable, scalable returns over what is the right return for the risk you are taking - then by all means get some leverage and go for it. However, since you are incapable of articulating your results or how they compare to the market, my guess is that you are not the next Steve Cohen

Can you teach me how to crush it? Noob here who’s very much interested in learning basics of investments.

honestly the best thing you can do is simply try to learn about different potential investments. what they are, how they work: just the basics: dividends, yields, bonds and preferred stocks, etc etc. learn how to read a balance sheet; eg what ‘cash equivalents’ means. if you can understand, clearly and in simple terms, these basic investment ideas, you’ll be better off than 90% of investors

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