Day trading is like a guerrilla warfare

Discussion in 'Psychology' started by Joe Ross, Mar 13, 2009.

  1. There are only two kinds of day traders, the quick and the dead. Day trading is like guerrilla warfare. The quick seize opportunities immediately, move their stops to break even as soon as possible and capture as much money as is possible in the shortest amount of time. The dead are never quite sure when and how to enter a market or where to get out. These dead turn into “Three Month Wonders,” because after three months, successful traders wonder where they are. So do their brokers. I have spoken with brokers who have never had a day trading customer who was actually a winner. There are three kinds of trader with relationships to markets: those who know what is going on and take action, those who know what is going on and do nothing, and those who don’t know what is going on and can do nothing. These last ones are suffering from an inability to pull the trigger on their trading rifle. Sadly, that includes far more aspiring traders than you would care to imagine. These people have been badly burned, burned too often, or both, that when they finally do know what to do they are unable to execute.

    Generally, this inability to act stems from the person not willing to risk the pain any longer. The dread of pain for them is stronger than the hope of winning. In many cases, due to consistent trading losses, they have inculcated into their psyche the notion that they are losers. Once a person accepts the idea that he/she is a loser, it is extremely difficult to bring that person back to the idea that they can win. Hope has been lost to the extent that they begin to look for a miracle way to trade. Any confidence in themselves is gone.
  2. It is all in the head....100% mental between those that are competent and those are expert.
  3. Daytrading is a losing proposition, praised by brokers so you generate lots of commissions for them, even if you go broke.

    They are the guerrillas, you the ignorant peasant.
  4. pma


    Joe-agree 100%
  5. As long as most people know daytrading is loosing game I am happy,it will keep most people away from it. And we will keep making descent living.This game is very hard for 95% folks,one has to unlearn everything ,like fear greed. Keep away from daytrading. most will loose ,but few will make the killing.
    :D :D
  6. Hmmm, I guess the last 8+ years of daytrading index futures as my sole income never really happened, eh?

  7. Why will you be happy when most people KNOW daytrading is a losing game?

    We constantly need new people to bring in new money to this market! Or else the successfuly traders will have little to feed on but each other. When all the zebras have died out and all you have left are lions, what can the lions do?

    To ALL: Day trading is very, very easy!!! Come... open your account. Try it! $3000, $10000... doesn't matter. Come!
  8. ammo


    Joe ,you've offered a problem that all traders start out with but not a solution,this is an evolutionary step in trading,like the neanderthal compared to the modern day human,i'm sure you have more to offer
  9. Does anyone know where the “95% failure rate” stat comes from? I see this posted all over this site and I have a hard time believing it. Not that I don't think it takes a special talent/psyche to do this ... but it's not rocket science either. In fact, I know several traders who have been very successful. With these traders it's more a question of identifying different strategies and opportunities that net you better gains … not going down in flames!

    Perhaps this stat is just an ego thing???
  10. Mr J

    Mr J

    The stat would be a guess, but the vast majority wouldn't succeed, simply because they won't see it through. The ones who "fail" those who didn't take it seriously.
    #10     Mar 28, 2009