Most investors and self directed traders ponder these questions as they watch CNBC or analyze moving averages and head and shoulder patterns using their brokers toolboxes.
Now here is the scary and the very real statistic: Over a period of 10 years or longer, only 1 out of a 100 professional Wall Street traders makes money consistently, year after year. Most give up or are pushed out by their bosses. The statistic is way worse for the retail investor or day trader.
Yet, we keep trying, in the hope of hitting a home run and retiring to an island paradise, or buying that house of our dreams or that Lamborghini. Every time we see some advertisement for an investment newsletter that will double our money in 6 months or turn $ 10,000 into a million dollars we get intrigued.
But the reality, ladies and gentlemen, is that the only person turning $ 10,000 into a million is the charlatan pushing the bogus claims.
The best traders in the world, the likes of Jim Simons of Renaissance Capital or Steve Cohen of SAC Capital have averaged no more than 30% annualized from 1998 to 2008 and much less so in recent years. Even Warren Buffet, the sage of Omaha, has averaged only 7% annualized over the same period. (Source: The Future of Hedge Fund Investing, Wiley 09).
The bitter truth is that most claims of stupendous returns are no more than scams and backed by little fact.
Monty Agarwal, the founder of MA Capital Management, LLC has been trading capital for the largest global banks since 1996. In 2004, he started Predator Global Master Fund.
Predator Global Master Fund had no losing yearand beat the Barclay Hedge CTA
Index every single year
Predator Global Master Fund was nominated as the Best New Asian Hedge Fund and the Best Asian Relative Value Fund in 2005
And now, for the first time, we are offering Predator Files research reports, that will give you the technical and fundamental analysis that we have used in managing capital in our Predator Global Master Fund as well as in our Predator Basic managed account platform.
Please visit us at www.MACMLLC.com/Research.html to read more about Predator Files and the firm and sign up for a FREE trial period
Monty returned to the US and launched his hedge fund Predator Global Master Fund in 2004. The fund was nominated as the Best New Asian Hedge Fund and Best Asian Relative Value Hedge Fund, 2005 by Eurekahedge and Terrapinn and had a profitable track record when it was sold in September 2006.