2009 was a very good year for Goldman Sachs

The statistics:

  • out of 194 trading days in 2009, the firm has made over $100 million on 116 occasions.
  • the firm lost money on just 3 days in the last two quarters.
  • they never lost more than $100 million on a losing day.

Nobody really knows how they do it. Their methods are proprietary, trade secrets, like how Coca Cola makes their beverage. They also have tried to brand themselves as the brightest people. So Goldman Sachs probably have many talented traders involved in this. It would be interesting to know how much of this trading result is
from trading not really accessible to the general public. There have been a lot of talk of Flash trading and schemes that only the big firms have access to. If all this money comes from a computer hooked up to the exchange that is more or less front running the general public it is not so impressive. Yes, it is important to have liquidity in the market, but I think everybody would like to be making money every day except 3 days the last 6 months.