Short answer: It is difficult but definitely not impossible to outperform hedge funds and asset management firms over the long run.
Long answer: There isn’t a direct answer to this.
Hedge funds and big trading firms have billions in capital, teams of experienced and highly qualified portfolio managers, traders and analysts, cutting edge hardware and software infrastructure and real-time access to material market information.
Retail traders have a rusty old laptop, a free trading software and questionable Wi-Fi.
Fortunately, the good news is institutional traders and retail traders have different edges in the market. Retail traders can succeed if they know how to play their game right. To understand the difference between us and them, let’s look at the advantages and disadvantages retail traders have compared to the big boys.
- David vs Goliath!