For those who want to become traders

I found this on Twitter.

This is a list of hedge funds and how much they made profits in 2024 - If you check the image, only 4 of them managed to overperform the S&P 500 which had an annual return of 23% last year.




The majority of investors would earn more by simply putting funds in SPX and forget it.. it's insane taking such risks with hedge funds... behind each of these funds are whole teams of analysts with years and years of experience and this percent is all they are making (in a good year).

In comparison to prop firms, if you can make 2% of profit every month, you'd be in the top 1% best traders in the world. This is also a good indicator of how hard trading actually is.

"Absolutely agree! A steady, lower-risk approach like SPX can often outperform high-risk hedge funds, especially when considering the huge teams and resources behind them. And yeah, making 2% per month consistently is incredibly impressive in the world of trading – definitely not an easy feat!

INCC said:

The majority of investors would earn more by simply putting funds in SPX and forget it.. it's insane taking such risks with hedge funds... behind each of these funds are whole teams of analysts with years and years of experience and this percent is all they are making (in a good year).

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Big Hedge Funds can't micro-trade. Microtrading could give massive gains given that with not much money in your bank, you are not moving the trade values at all. When these massive HF buy, they move the needle. In fact, results from S&P500 are largely dependent on all of these HF. Moreover, most big banks use these HF as investing vehicles for their clients because they are mostly lazy AF and just do HF packs to "diversify funds" which is fake because most HF end investing in very similar things.

But let's remember that in 2022 SPX scored a -20%. My current fund (the Paramés Cobas International) beat SPX in 2021, 2022 (massive 30% difference) and have lost like only a 10% in 2023 and similar in 2024, with a 3-year accumulative of +20% vs SPX.

This last two years, SPX has performed very well, but it has some ups and downs. Generally it has been performing well but over large periods of time. Unless you have a large sum of money that you cannot care to manage (like $1M+) ideally you should opt to micromanage a little more if you like this thing.

INCC said:

I found this on Twitter.

This is a list of hedge funds and how much they made profits in 2024 - If you check the image, only 4 of them managed to overperform the S&P 500 which had an annual return of 23% last year.

View attachment 412482


The majority of investors would earn more by simply putting funds in SPX and forget it.. it's insane taking such risks with hedge funds... behind each of these funds are whole teams of analysts with years and years of experience and this percent is all they are making (in a good year).

In comparison to prop firms, if you can make 2% of profit every month, you'd be in the top 1% best traders in the world. This is also a good indicator of how hard trading actually is.

Click to expand...

You can never win against institutional traders. They have access to much more than you do. I wonder why anyone would want to trade by themselves.

HenryObi said:

You can never win against institutional traders. They have access to much more than you do. I wonder why anyone would want to trade by themselves.

Click to expand...

Well prop trading isn't that bad at all even if you can secure 1-2 % of profits per month.

Most legit prop firms offer trading accounts for $300-$400k - Some of them offer over a million with a max allocation (super hard to reach obviously)

So let's say you are a profitable trader and you can make that 2% each month and you trade under 4 different prop firms where's you have a $400k account on each.... That is $1.6 million in total funds.

2% profit from that is $32,000 per month.

1% profit from that is $16,000 per month which is also very very good

Some people are making way more but people who are consistent with profits and trade years under prop firms usually take single-digit profits every month and not more.

Now if you are trying to trade under your personal account and grow that... it will be super hard unless you have significant funds available.

Trading is likely one of the hardest thing one could learn on his own.

INCC said:

I found this on Twitter.

This is a list of hedge funds and how much they made profits in 2024 - If you check the image, only 4 of them managed to overperform the S&P 500 which had an annual return of 23% last year.

View attachment 412482


The majority of investors would earn more by simply putting funds in SPX and forget it.. it's insane taking such risks with hedge funds... behind each of these funds are whole teams of analysts with years and years of experience and this percent is all they are making (in a good year).

In comparison to prop firms, if you can make 2% of profit every month, you'd be in the top 1% best traders in the world. This is also a good indicator of how hard trading actually is.

Click to expand...

A gambler will always be a gambler, there will always be many people thinking they are not part of that statistic and can beat the market.

I agree, better to put money in SP500 and just forget about it and focus on other things.