I Trade Because I Can

An excellent example of the “I am trading like crazy because I can” mentality are today’s hedge funds.  If it is estimated that Americans currently hold approximately two trillion dollars in hedge funds and the typical hedge fund has an annual turnover rate in excess of 300%. There are a little over 4,600 hedge funds on the market today. While some of them have reasonable performance, as an industry they have underperformed the market. In fact, their performance rate is so low that every...