Are there other reasons why portfolio advisory service are generally more profitable?
The growing complexity of the markets is one factor but by no means the only factor. As in most areas of investment, trading experience and trading skills are ultimately major determinants of trading success. Profitable trading requires the discipline and temperament to respond to market realities if and when they conflict with market expectations. It requires a keen knowledge of when and how to liquidate positions. It requires the development and implementation of carefully considered trading strategies, a trading plan, and a trading system. Effective account diversification demands an insightful understanding of how various markets react with and to one another. Otherwise, attempts to diversify could prove illusory. Even institutional and corporate portfolio managers who may have experience in, such as for hedging applications, generally choose to use professional advisors to manage their trading investments. For most individual investors, the advantages can be even greater.
