We've already argued that passive investing is destructive to wealth, but can we quantify it? Dylan recruits the tastytrade team to share their experiences as a retail trader to shed light on our 8th pillar.
As active investors, tastytrade is familiar with the excuses used to stay passive: it's time consuming, it's a zero-sum game, it's too risky, etc. However, several members of our team can attest to the fact that they trade for less than 30 minutes per day, and that knowing how to use the investment products (like options) available can allow traders to reduce losses, increase capital efficiency and improve breakeven prices if the product doesn't move in our favor.
Active investing doesn't necessarily mean picking a direction, it means staying engaged and using the available tools rather than hoping our wealth outperforms passive fund and market benchmarks.
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