Robert Carver > Quotes

“It’s worth emphasising this: the benefits of diversification are greater when average returns are measured with geometric means.18”
― Robert Carver, Smart Portfolios: A practical guide to building and maintaining intelligent investment portfolios

“Whilst writing this chapter I examined the accounts of a large UK CFD and spread betting provider. They made an average of $1,379 in revenue per customer. Revenue for a brokerage company is a cost for their customers. The customers had an average of $500 on deposit with the brokers at the end of the year. Running a brokerage firm is clearly more lucrative than being a client. According to an old story, a naive client visiting New York and admiring the boats of bankers and brokers asked: “Where are the customers’ yachts?” Every time you trade you remove some money from your account and hand it to your broker. Limit your trading to the absolute minimum. Do not assume you will make sufficient profits to cover costs which are inflated by overtrading. Those”
― Robert Carver, Leveraged Trading: A professional approach to trading FX, stocks on margin, CFDs, spread bets and futures for all traders