Kardec TraderFutures Trader. Creator of The Midas Touch. Mentor

The Difference Between Hedge Funds and Retail Traders...

12 Jul 2023 · 1 min

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A brief transcript excerpt from a Kardec Trader YouTube video (July 12, 2023) comparing hedge funds and retail traders. The speaker argues hedge funds cannot easily achieve extremely high percentage returns (e.g., 400%) because large capital and liquidity constraints make such returns difficult, whereas retail traders with much smaller positions can more readily obtain large percentage gains.

Chapters

Oh, hedge funds make 20% a year over year. How did they make 400%? It's impossible. Even if you and I use $4 million or $3 million in positions, we won't have issues getting in and out. Hedge funds will. So it's essentially easier for us to take $1 million and get a 400% return in a year. For trading where a hedge fund that has 400 billion, it's harder for them to get a 400% return because the capital is so large and liquidity becomes an issue. It.