An idea

I find that it is much easer to find someone who is consistently wrong then someone who is consistently right. I know someone who started trading with 4 mill and ran it down to 100k before giving up. My idea is what if I were to hire someone like the last person I mentioned and pay that person to pick stocks, and whatever that person tells you to do, you take the otherside of the trade. Has this ever been tried?

 

When he is not trading he would probably be right.

 

This idea come up here on ET about once a week
The problem is that you really got to trade the exact oposite trades and also, you need a CONSISTENT loser.
Also, to me, this is not a zero sum game. Spread and transaction fees make a difference in the final P/L.
It's the same idea with a black box, find something that dosen't work and reverse it!
I never tried.

 

yup..open a spreadbet firm ..watch your customers positions, seperate the winners from the consistent losers, and dont hedge the latter. Bingo.

 

Pay him on the result and he makes and he will get wrong imediatelly.
That's the way

 

You will never become a trader if you approach it like a 2 year old.

 

Are you consistently losing? If you are, perhaps you can hire a friend to trade a separate account with 10 times the money. He will WebEx monitor you on your every move, every day, but bet in the opposite direction with 10 times the capital. Voila! Pay him a little bit for his work and you can benefit very well from your own wrong picks.

 

This idea has been relentlessly coming over and over again and I suspect the brokers had been thinking about it too. But I think it's impossible, here the reason why.

- A loser cannot be spotted in advance, we only know when he had already lost everything. Similar to trending stock.

- Once he lost, how to provide him a new capital? This is the biggest obstacle. If you give him the money, it won't work since his psychology will be different this time so he won't be playing the same way because he got an easy money to play, not with his scared hard-earned money anymore.

 

is this a joke ? are some people in that bad of shape that they have to resort to this trading technique ?

 

I think that your idea is not actually so bad however I would approach it differently. Can you identify a trading strategy that would lose consistently? For example, a bad strategy that should lose money would be (for long trades in an uptrending market) sell the retracement after it is well underway and set targets to scale out below the last swing low (not too far away however). As for the stop, ideally there wouldn't be one! However, use a stop that is significantly far away as to cause the account some serious damage. Do the opposite for short trades in a downtrending market.

Now, don't trade this strategy, just take the opposite side! You should find that you are snatching at your losers and letting the winners run and run.