I came across this article from CNBC: https://www.cnbc.com/2020/09/18/stock-picking-has-a-terrible-track-record-and-its-getting-worse.html

It basically says that as markets are becoming more efficient, smart money is increasing and dumb money reducing (as they now prefer to invest through different funds rather than doing it on their own), it is becoming more difficult over the years to generate alpha and opportunities are reducing.
Will there be a time when it is no longer possible to make money from the market as active traders/investors? will full-time trading even be a career 10-15 years from now?
I would usually just dismiss such thoughts but since this is from CNBC, maybe they have a point? What do you guys think?

bavan666 

I came across this article from CNBC: https://www.cnbc.com/2020/09/18/stock-picking-has-a-terrible-track-record-and-its-getting-worse.html It basically says that as markets are becoming more efficient, smart money is increasing and dumb money reducing (as they now prefer to invest through different funds rather than doing it on their own), it is becoming more difficult over the years to generate alpha and opportunities are reducing. Will there be a time when it is no longer possible to make money from the market as active traders/investors? will full-time trading even be a career 10-15 years from now? I would usually just dismiss such thoughts but since this is from CNBC, maybe they have a point? What do you guys think?

Actually, no.

I can't remember the first story like this that I read, but it was decades ago. It's a popular theme that is brought out now and then. The point is easy to make, because trading is not an easy job and most traders do not do well. It also fills up air time by giving them something to say.

Trading is not "getting worse," it's always been hard. This is not a new thing. There will always be some new development offered that is the cause, but it's not really. The market is highly competitive, and to do well, you are going to have to compete against some good people. But that isn't such an interesting story.

Bob.

Its tradable as long as it moves, also investing with funds is not necessarily a "better" strategy.

On grand scheme of things profitable trader is a very small group and its highly unlikely that the "supposed" efficient big money will change its course to target the 3% over the 97% others not so profitable ones.