And another day trader bites the dust

Discussion in 'Risk Management' started by MrRenev, Oct 15, 2020.

  1. themickey

    themickey

    Ya, many genius type people are weirdos.
    Not sure what I prefer, weirdo genius or Mr Joe Average.
    One thing for sure, 'tis easier to herd cats than get agreement on day trading. :)
     
    #71     Oct 16, 2020
  2. deaddog

    deaddog

    Herding cats is easy if you have an edge. Get some cat food.:cool:
     
    #72     Oct 16, 2020
  3. JSOP

    JSOP

    Yes Covid lockdown was one of the most enjoyable periods of my life. Got so much figured out. :)
     
    #73     Oct 16, 2020
    NoahA and themickey like this.
  4. soulfire

    soulfire

    The studies you posted don't show day trading is impossible, just difficult and only a small percentage can achieve, which everyone already knows.

    The purpose of this study was to see is Day Traders can learn by trading. Majority of traders fail and a small percentage succeed. So they don't "all" lose money.


    Study said NOTHING about whether traders made money by "chance", just whether they made money or not in the 21 month period. Again, majority of traders failed while a few succeeded. The best trader made $197K during that time.


    Again, the claim that they all lost is wrong. A small number succeeded, as the following chart taken from the study shows:


    BrazilTrading.jpg


    Brazil minimum wage is $16/day so clearly a few are doing quite well for the time period of the study, 300 days.

    You can make the case that the Brazil study shows high risk for the highest gainers, but the traders are nonetheless making consistent money.

    It's always been the case that out of many that try, a small percentage will succeed, as shown. There was no conclusion that day trading failure was inevitable.

    So to say it's impossible or destined to failure when the studies say nothing of the sort makes no sense.
     
    #74     Oct 17, 2020
    Sprout and SunTrader like this.
  5. MarkBrown

    MarkBrown

    insert popcorn icon here >
     
    #75     Oct 17, 2020
    MrRenev likes this.
  6. SunTrader

    SunTrader

    Thanks for taking to time to sort through the "rubbish". :thumbsup:
     
    #76     Oct 17, 2020
  7. MrRenev

    MrRenev

    Doing 10% trading an indice when there is a bubble and it goes up 500% is really good.

    I know some people that did experiments with their dogs... dogs did better than most human day traders...

    Anyway I'm thinking... If a clown small day trader magically managed to find an edge big enough to cover not only the "market" spreads - hard to believe since one needs to be pretty dumb to day trade in the first place - but ALSO his broker costs (can't negotiate them unless one is huge and then you can't really be a day trader if you are huge) AND beat simple diversified buy and hold strategies, and the cost of leverage, at that point the edge is so enormous wouldn't brokers would look into it?

    So... only way to actually make real money is by having an enormous edge (or becoming a licensed broker and directly connecting to exchanges etc?), so I mean they'd want to stay undercover otherwise the brokers/academics/market makers/exchanges/regulators/my neighbour can recognize them and steal their magical strategy. But since day trading has enormous costs something like 1/5 of their risk+reward, taking additional trades to stay undercover decimates their profits...

    No matter how I twist it, unless there is a flaw in the system like in the SOES days, I don't see how any one can possibly make money day trading in this universe. Maybe in fantasy land idk.
     
    #77     Oct 17, 2020
  8. volpri

    volpri

    I don’t know about herding cats but long term investors are more scared than a cat with a long tail locked in a room full people rocking in their rocking chairs...ROFL
     
    #78     Oct 17, 2020
    themickey likes this.
  9. volpri

    volpri

    Whatever happended to dozu888. He should have flocked back bragging.
     
    #79     Oct 17, 2020
    qlai likes this.
  10. speedo

    speedo

    Stocking shelves at Walmart.
     
    #80     Oct 17, 2020
    themickey likes this.