The mark of a pro is that he will beat an amateur in a series of bets in the area of expertise. Financial experts should beat the market, which is composed of partly amatuers like me, and partly of pros.
It occurs to me to offer a sum of money to a pro for management on these terms. Invest it NYSE & NASDAQ listed securities. Each day, if the value has gone up, the pro gets 50% (yes, 50%) of the profit, and the value is re-baselined for the next day. If the value value goes down, the pro contributes his own capital to make up the loss, bringing the value to what it was at the start of the day.
Are there any pros confident enough in their ability that they can make money on those terms?
2007-03-30 03:01:33 · 3 answers · asked by zxdfmlp 3 in Business & Finance ➔ Investing
I am sure there are enough pros who are able to do what you challenge them to though it is not easy!! However if they could they probably are and I am quite sure they are not going to give you 50% of the profits... but I don't think that is your question you want to know if the scenario is possible, right?
I would however not set a one day target as beating the market everyday is not realistic. Most stocks do not move very much in one day, most big changes occur over many months and sometimes years!! Warren Buffet the greatest investor of all times does not buy and sell stocks daily. He doesn't even see what the market is doing; he knows what it is doing inside his head, he just sometimes checks up to make sure people aren't being stupid!! Day trading does not make you an investor it makes you a gambler and I know I would have more fun at the casino gambling my money away than on the stockmarket (where I can't dress up nice and buy a drink when I feel like it... also the atmosphere inside a casino is very exciting)
Are you actually looking for a day trading pro to do this for you? Unfortunately I don't think you will find someone if you are, since your challenge, though enticing and good for you is not very apealing to the pro. Having to pay out 100% of the loss is painful even to a pro :-) However the closest you will get to this is a mutual fund that will guarantee you your start amount. This is a very safe method of investing and while it doesn't have a very high return (since it is so safe and the money to make up for losses has to come from somewhere) the money manager will give you 100% of the profit (after fees of course) and that is also better than giving away 50% of the profits...
If you do find a pro willing to take you up on your offer let us know!! If you don't and don't want an insured mutual fund then I would advise you to study investing so you can beat the market yourself!!
Good luck whatever your goals are!!
2007-03-30 04:35:08 · answer #1 · answered by erianoillib 2 · 0⤊ 0⤋
No. Nobody is going to accept 100% of the downside risk for only 50% of the profits on the upside.
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2007-03-30 10:52:14 · answer #2 · answered by SWH 6 · 0⤊ 0⤋
the answer is NO!
2007-03-30 10:17:11 · answer #3 · answered by sm bn 6 · 0⤊ 0⤋