This is total nonsense.

And I can prove it with one simple view.

Risk premium is essentially where you bear risk when others don’t want to.

Edge is when you’re trading some kind of price inefficiency.

Take the example of Apple.

Sure, you might have some quant model that is able to show when an option is mispriced and trade the market based off this.

But you know what’s easier?

Buying Apple at a 52 week high when you simply know that uninformed people will be selling because they are a bit scared.

Here’s a chart.

You can see the 52 week highs in blue.

Sure this is an incomplete strategy and if this were the only measure you’d use and were buying and holding you would end up seeing a revisit of the 52 week high you bought at at some point.

But a simple risk premium harvesting trick like that certainly works.

We use this partially in the Academy in our momentum signal model which identifies the highest probability of further upside in US mid and large caps.

We’re pretty nifty at what we do and can spot and teach you how to do the same.

You can stop your anxiety and understand how markets actually work, how to build a proper strategy and take control of your portfolio by joining here.

Risk premium will always exist.

Edges erode.

By the nature of markets, stupid people and scared people will always participate.

You just need to learn to use this to your advantage (SpaceX IPO hello 👀).

Your job is to build systems to take advantage of factors, stupidity and probability.

Your job as a DIY investor is not to do anything complex and compete with those with broad infrastructure.

Join the Academy and we’ll show you how.