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Originally Posted by Brutha  Absolute expertise is irrelevant. The thing that counts is to have more expertise than those guys at Goldman with have millions worth of computer programs and a lot of very smart people around.
If you are better than them you make money and they lose money. If they are better it's on average the other way around.
Of course there still some natural amount of money that's gained through the average market movement. |
It's not even comparable. Goldman Sachs, large mutual funds, pensions, and other institutions aren't playing the same game as retail traders. Their goal is to keep their clients money with them and charge the management fees. They can do that without even being profitable, as long as the clients are happy. Market makers are attempting to pocket the bid ask spread, not capture directional trades. Retail traders are attempting to grow their account equity.
Different goals means that while there might be competition on some levels, they don't have to lose for you to win.