If chess players are so smart why they are not millionaires/billionaires?

The problem with dollar-cost-averaging is, well, it's like watching a 1500 player against an aggressive 2000 player....it's all too slow. And IMO, HFT's actually hurt the retail trader - bad. That's why May 6th happened....and WS was able to unwind some of those trades in that snafu ! Unbelievable. Are you kidding me ? Hey ding dong....you sold it to me.

The point is we're having problems leveling the playing field between the pros and amateurs. But then don't expect that to change.     

I'm not saying everyone's got their algorithms tuned 100% properly, but the principle is sound.  The Flash Crash should have been tempered by high frequency opportunistic buying (or by exiting short positions).  Maybe the problem wasn't enough HFT....  The bottom line is that as long as there's transparency everyone sees the complete market conditions in real time.  Reaction times might not be as fast for non HFT traders, but access to information is how the playing field really should be leveled anyway.

If an amateur is trying to clean up standing arbitrage opportunities in the face of HFT players they don't stand a chance and aren't playing to their strengths.  Amateur traders should be looking to be the best at identifying mispriced stocks and derivatives and acting accordingly, or simply looking for the best growth instruments and hanging on (rebalancing and tweaking balance parameters frequently).  The latter is my primary strategy because I don't have the time to commit to the former outside of some more long term macroeconomic plays.

Gee, let's see, what other smart people are not millionaires or billionaires? Rocket scientists. Neuroscientists. College professors. The vast majority of authors. Philosophers. Translators who know 6, 7, 8, 9, 10 languages. Mathematicians. This is just a small sample. All the really smart people I know don't care about amassing wealth. They just want enough money so they can keep doing the things they are interested in. Making money is not interesting in and of itself. If it were, more people would do it for free.

wait is this 14 pages of... -this comment is here for no reason- (did not want to read the 14 pages)

http://dilbert.com/strips/comic/2008-08-24/

You posted the same thing about six months ago, remember?

You got totally destroyed on this assertion.  It is not true that Karpov owns that petroleum interest.

Is Susan Polgar now an expert on other people's finances?  lolz.

Check your facts, brah.

johnmusacha wrote:

varelse1 wrote:

Anatoly Karpov is rumored to be worth over $1B. His reported income in 2013 was $46M.

http://en.mediamass.net/people/anatoly-karpov/highest-paid.html

http://susanpolgar.blogspot.com/2007/07/billionaire-world-champion.html

If chess players are so stupid, how did he get all that?????

You posted the same thing about six months ago, remember?

You got totally destroyed on this assertion.  It is not true that Karpov owns that petroleum interest.

Is Susan Polgar now an expert on other people's finances?  lolz.

Check your facts, brah.

.

So I did. As youhad no luck refuting what I said six months ago, I thought to give you a second chance.

And you'll notice Susan Polgar wasn't my only source, was it brah?

I piss on your "source"

http://en.mediamass.net/people/anatoly-karpov/highest-paid.html

I guess McDonald's employees don't need to engage in much critical thinking, so I forgive your idiocy.

Then again, that "Mediamass.net" story has a red warning that says "UPDATE26/06/14: This story seems to be false."

Would you care to apologize now to the Chess.com community for posting false and misleading information about Karpov, now for the second time?

What is your problem?

                    Who knew a Ghostess could be my accountant/adviser ??

Re:  Karpov . . . 

PWNED!!!1

 Six months from now you will probably post the same old,tired nonsense about Karpov and claim that I "had no luck refuting your claims six months ago."

Owned!

Actually, the truly rich (i.e., billionaires) made their money through investments (or through inheritance) and not through work.  Read "Rich Dad, Poor Dad" which posits that it is a fallacy to focus on working to make money (instead people should focus on their investments).

We the Sheeple, in order to form a more perfect nestegg, establish greenbacks, insure domestic real estate, provide for the common good of preferred stock and secure the blessings of Bobby K. to ourselves and our prosperity, do ordain and establish this constitution for the meager crumbs for which we struggle........

being "smart"  does not make you a millionaire....I know many smart people who are complete idiots with their finances. 

And the other way around too.

yup!

I seem to remember they took a bunch of GM's, gave them a crashcourse and employed them as traders on wall street. In no-time they were amongst the most successful traders there.

Correct me if I'm wrong.

I totally, totally, totally, could not have less faith in your story about the GMs.

I don't know for sure, but it sounds ridiculous.

Then again, do you mean traders or brokers?  If you meant brokers then the story has less than zero credibility.