Stock Myths. Competitive advantage.

A very popular opinion among stock speculators and those wishing to become them, or rather a question: how are you going to outperform more tech-savvy traders, funds and banks, who have their own fiber optic cables to exchanges, who have their own consultants with higher economic and mathematical education, who have bottomless money, super-speed of order execution, the ability to move markets in any direction, etc., etc." What can you, a simple man with a cheap laptop and free Wi-Fi Internet at McDonald's to oppose them? What is your advantage over them so that you can take money from them?

Yes, everything is simple. Imagine that you came to the racetrack to play the races, and your friend keeps telling you: how are you going to win money from trained horses, who run a hundred times faster than you, which have two hundred times more horsepower and which are three hundred times more resilient than you, хлюпика, who cannot push up ten times from the floor, let alone run at least one lap of those that horses run. What are your competitive advantages over them??

Вроде бы все понятно. What difference does it make to us, how much faster the horses run than us and how many times the capital of CityBank is more than our deposit. We just place a bet on where the price of the chart will come after a while. And who will move the price in our direction — We are not interested in the City Bank or the Ultrafast Trading Fund at all, and we will never know. Let them fight among themselves, they move prices, not us. The result of their struggle will be our profit or a small loss., if the price does not go in our direction. That is, when compared with the racetrack — they (banks, funds, etc.) these are horses, and we just place bets on the outcome of their struggle among themselves.

  Excerpt from T. Dreiser. "Financier"
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