Quote from Visaria:
Buffett uses HUGE leverage!!! He makes use of his insurance premium "float" for example.
Can leverage really make such a huge difference? As I read it is both good and bad as seen below:
Leverage helps both the investor and the firm to invest or operate. However, it comes with greater risk. If an investor uses leverage to make an investment and the investment moves against the investor, his or her loss is much greater than it would've been if the investment had not been leveraged - leverage magnifies both gains and losses.
Read more: http://www.investopedia.com/terms/l...p#ixzz1feQdDrIS
Leverage is not always bad, however; it can increase the shareholders' return on investment and often there are tax advantages associated with borrowing. also called financial leverage.
Read more: http://www.investorwords.com/2786/leverage.html
How could leverage play a role in Livermore and Buffet cases?
There is a big differences between Unregulated accounts vs Regulated accounts.
Of course, unregulated accounts showed 25% makes money illegal. Because SEC banned Tuco Trading, the account statement on the first page is not LEGIT.
More than 90% of small traders lose. They just lose!!
Using the same logic, you can state that they could easily manipulate those numbers to always show that everyone lose the money, so they have nothing with they could pay taxes . Let´s say that i´m a trader, i made this year 544506456098098$, but as I know that my broker is unregulated, i offer to him a % if he manipulate all my data and show to the state that i´m loosing money. Meanwhile all my funds are transferred to an offshore account
Using the same logic, you can state that they could easily manipulate those numbers to always show that everyone lose the money, so they have nothing with they could pay taxes . Let´s say that i´m a trader, i made this year 544506456098098$, but as I know that my broker is unregulated, i offer to him a % if he manipulate all my data and show to the state that i´m loosing money. Meanwhile all my funds are transferred to an offshore account
80-90% is true for the full pool of traders yes, that includes those who are been trading for 1 week and those that have been trading for +20 years.
To get any meaningful info out of this you have to break it down in trances, like traders with 1-5 years experience, traders with 5-10 years experience, those with 10-15 years and +15 years.
I'm sure performance of those with longer term accumulation of knowledge and experience differs widely from the freshmen.
Not sure if anyone else noticed, but a prominent former Pristine trainer is listed and was apparently a consistent loser in his Tuco trading. An ET search for this guy's name will yield a positive recommendation for his set of 3 training DVD's, for example. This guy has probably taught 50-100+ seminars, and yet is shown to be a net loser in his own trading.
I hope that new traders that are considering doing business with Oliver Velez, VCM, Pristine, etc. will recognize that smooth talking does not in any way mean that the content is worthwhile.
. Let´s say that i´m a trader, i made this year 544506456098098$, but as I know that my broker is unregulated, i offer to him a % if he manipulate all my data and show to the state that i´m loosing money. Meanwhile all my funds are transferred to an offshore account 
