Are the pros really much better then retail traders?

Discussion in 'Trading' started by timvodas, Sep 29, 2007.

  1. timvodas


    what about brian hunter? you know the guy that deutsche bank hauled out of their offices cause he was losing so much money? then got them to recommend him to with that small time fund, I think it was called amerath? and proceeded to blow their 6 billion? How the hell could their uppers even let him get away with that?

    Risk management anyone?

    From what I am reading, newbies and pros have all of the same problems, except when the they win they win. neiderhoffer, longview, amerath, solomon bros, etc.

    all have the same problems as newbies, and its funny because you would think they know better. and I am no less guilty of making any of the same mistakes.
  2. jwecme


    I would say it depends on your definition of a pro. If it is just someone salaried at a firm then the pros are no better than the amatuers at trading as a rule. The only difference is they get paid whether they win or lose so they ahve a much easier life.
  3. Finding raw trading talent and emotional control is rare, pro or amateur - it's just human nature.

    I worked on a floor (non-prop) where everyone certainly considered themselves "pros" most of whom made millions due to a market structure edge and somewhat rational risk management by a 3rd party.

    After a mass layoff, remove the edge & 3rd party risk management, almost all of the guys who tried on their own blew up their retail accounts within 2 years, in some cases losing obscene amounts of money. Ironically, the biggest losers were the most revered BSD's at my firm.
  4. Not surprised by this..........making it by your own means ONLY is a very narrow street with minimal traffic.