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The Picard Maneuver@piefed.world to memes@lemmy.worldEnglish · 1 day ago

Using AI for trading

media.piefed.world

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Using AI for trading

media.piefed.world

The Picard Maneuver@piefed.world to memes@lemmy.worldEnglish · 1 day ago
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  • UnderpantsWeevil@lemmy.world
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    1 day ago

    They rebalance continuously.

    On the margins. You’re not seeing the whole portfolio turn over day by day.

    Even if they waited it wouldn’t matter .001% of $1 billion a month is the same as .001% of $333m daily.

    Which 401k is flipping $333M of balance sheet every day?

    Also, how many days do you think are in a month?

    • Blue_Morpho@lemmy.world
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      24 hours ago

      Sorry I dropped a decimal. 33.3*30

      Your 401k isn’t $33 million a day. It’s the funds behind it that are trading daily.

      .001% of $33M from the Vanguard Index means you lose .001% of the $50k in your 401k which holds Vanguard.

      • UnderpantsWeevil@lemmy.world
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        24 hours ago

        It’s the funds behind it that are trading daily.

        $33M/day is an enormous churn, even for a big pension fund. Again, I’d like to see where you’re finding these numbers. The NYSE trades $18.9B/day across a pool of $52T in asset value. By proportion, you’re talking about a fund with a $90B market cap showing that kind of activity.

        • Blue_Morpho@lemmy.world
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          23 hours ago

          12% of daily trades are day traders. That means 88% isn’t.

          https://tradeciety.com/24-statistics-why-most-traders-lose-money#%3A~%3Atext=Profitable+day+traders+make+up%2Cof+all+day+trading+activity.

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