Trading Education Buyer, why do you make funny? What is "an insurance premium for an overnight hold" on a futures contract? You do realize this is a trap question, yes? And you DO realize that this is a futures forum, NOT an options forum, yes? This is the second time I have mentioned this. Don't respond if you do not have the right answer.
%% I did not mean to say option/future is regulated by insurance comissioner The main point was [not options or insurance]- an illustration of you may get paid for risk over time. In other words,a picture of a sunset is not exactly a sunset-get it?? Good queston
I understood most of your question answer;you may get paid for risk over time, trading+ investing, is my bottom line.Wisdom is profitable to direct.
Methinks you didn't understand it at all. In my mind, trading is not investing. They are mutually exclusive concepts.
There are various kinds of business. Trading and stock investments are two unique businesses. All business involves investment. A trader is basically a businessman who "invests" money in trading. In some cases an investor may just invest as a silent partner and his working partner may do trading with the investment. In both the cases trading is a business which involves investment. There are two kinds of investments in stock market. Value based investment and speculations based investment. The former we wish to call as "investment" and the later we tend to call as "just trading but not investment". A trader may have done 1000 tradings in couple of months. It is just a part of his activities in his trading business. An investor might have studied the functional analysis, news and events 1000 times in a couple of months. It is just a part of his activities in his investing business. Also we have to keep in mind that any business (including trading) is both an Art and a profession. They need creativity, intuition and passion for sustained success. In any art there is nothing right or wrong. The one and only way to judge our strategies is by "sustained success". Why I am putting stock investment and trading into one box called "business"? Because both the so called "investment" and the so called "trading" needs the same kind of attitude for sustained success....an attitude of respecting and protecting the money. Business is a tree... Seed (business attitude): Rule No.1: Never lose money. Rule No.2: Never forget rule No.1. - Warren Buffett(Warren Buffet has this one rule as seed, and his many other rules are just parts of the tree that grow from this seed.) Root : Studying the market psychology Trunk : Broad knowledge Branches : Specialization Leaves, flowers and fruits : Profits from the business Probably 99% of the traders lose money for a simple reason that they have an unrealistic goal of reaping the fruits without a seed (business attitude). (If a trader see Warren Buffet as an investor and his business attitude has got nothing to do with trading then he is missing the whole point.) The purpose of debates is to learn something new. Otherwise it becomes one more "empty" argument.
Greediness to earn money from trading is entirely different from passion for learning trading. Passion, intuition and creativity are the three pillars needed for sustained success in trading.