Alpha vs. Beta... I mean we all want alpha right, the *excess returns* above and beyond what the market might normally hand us.
Problem is, most of us are really trading beta, aren't we? We may trade individual stocks and options, but how often are we truly catching an alpha advantage? Probably significantly less than most of us assume.
Stocks tend to follow the broader the market. Heck, it's the definition of the indexes. The problem is it costs a lot of people money not fully understanding that. If the majority of the time we are just riding the indexes, with a bit more volatility here and there, there are very real costs involved to using non-direct financial instruments to do so.
I know all of us want alpha, but even if we catch it, its impossible to quantify. There is a simple way around this dilemma, trade the indexes.
Every trader has their own style, their own system, and I would never cast a shadow on someone else's way of trading. Especially if they are experienced. But there are significant costs to playing specific symbols, and especially the options of those symbols.
I just hope people are aware that if you're really just riding beta, maybe it's time to consider futures trading... ESP if you're a day trader and dealing with crushing PDT rules.