I watched Pyramid Scheme on Prime last weekend. It brought back a lot of memories of what it feels like to be stuck in one when the scheme goes bust.
When I started my career at ~18, I was trying to find ways to fund my trading account. For about two years, I got drawn into a multilevel marketing company that turned out to be a pyramid scheme. I don't think I was deceived by the person who introduced me, but by the company itself. Partly because I ended up introducing a lot of people to it too.
The scene in the series showing the moment the fraud unravelled was surreal to watch. The director has captured the desperation of that moment remarkably well.
I thought this was something that only happened in the early 2000s. I didn't realise that even today, 2 new pyramid schemes launch every day in India. Over 5.5 crore Indians have lost their savings to more than 5,300 such schemes, estimated losses of Rs 10 lakh crore as of 2015, likely far higher now.
One truth my experience has taught me: there is no quick way to make a lot of money, be it trading or any other business. Anything promising returns higher than a bank FD comes with risk. The higher the claim, the greater the risk.
This dynamic has also played a big part in the recent growth of retail markets, people spreading the word that it's easy to make money in stocks. It isn't, and the reckoning tends to come quietly, one account at a time.
And if someone tells you that you can make easy money just by introducing others, run. Almost every single one of those is a fraud.
“I don’t want to have to worry about the market every minute. I want models that will make money while I sleep. A pure system without humans interfering.”
— Jim Simons
By 30, you should already have high aura.
Don’t be that 30 year old trying to up their aura.
Start now.
Eat clean, walk 10k steps, take care of your nails, hop on tretinoin, invest in your wardrobe, sell covered calls, mind your business.
Instead of watching an hour of Netflix, watch this 60 minute lecture from Steve Jobs after being fired from Apple. It will teach you more about building companies than most startup books ever will.
Stanford PhD David Magerman helped shape Renaissance Technologies legendary trading models for over 20 years.
Here he breaks down why you can’t compete with algorithmic trading models: