Elephant in the Room

Discussion in 'Professional Trading' started by FaderTrader, Mar 20, 2006.

  1. I've been reading the threads on these boards and have a feeling that the overwhelming majority of people on here lose money because they aren't using the right software.

    I live in NYC, where there are a ton of prop shops/arcades (some good; most bad). But, all of them have decently powerful software platforms that let you punch in and out of the market and watch order flow.

    Yes, trading is a hard business, but it seems like most on here are trading through IB or Etrade or something and enter orders based on MAs or other technical tools that don't read the tape at all.

    Reading the tape for me is my saving grace as it increases precision at least 10-fold.

    Admittedly, my experience has been limited to prop firms in NYC. So who am I to say that a rancher in Wyoming entering swing trades to his TD Waterhouse account, can't beat the market - it just seems highly unlikely that he would - and sadly, it seems like it's those types who congregate here.

    Can any experienced traders share if they too think that the negative feedback on here is from rank amatuers using crappy platforms who give thier money away to people like me who can simply see deeper and act faster?

    Since joining this forum and reading these threads, I've gotten the impression that I'm either really lucky or really good - when in reality, I think I'm just an average trader (hence, I'm here). But still, some people on here just seem to be clutching to pure fantasy. Maybe they don't know what's available to them?
  2. my, we have a high opinion of ourself. there are hundreds of ways to make money in the market and most of them have nothing to do with the software you use.

  3. I wasn't trying to be antagonistic.

    I agree - with a lot of capital and low leverage, swing trading can work well.

    But, wouldn't you agree that most traders on here are operating with so little capital that they can't afford to take big losses?

    Afterall the entire purpose of day trading is to get in and out for small profits and losses. If you are trading in a short time frame (intraday) but use software that is being used by swing traders (whose profit is less affected by slippage) - doesn't it stand to reason you'd lose money?

    I'd love it if was the ONLY one using decent day-trading software. But again, I feel that the tone on this board, which portrays trading as completely insurmountable, is more derivative of participants' ineptitude and lack of awareness of what's out there than the market itself.
  4. JORGE


    I can assure you that a direct access broker like IB, provides a fast enough platform to trade in and out all day with as much success as a prop platform.
  5. Forgive my digression ...

    You might be impressed by the savvy and capital that many Wyoming ranchers have.
  6. I found that every minute spent on worrying about other people's capital or tools is one minute less focused on my own money and software.

    I do not see where your post gets you anywhere. If people are under capitalized or using the wrong tools in your opinion, then it should not affect your day to day trading. Apparently you seem to be doing all right so those under capitalized day traders will take care of themselves lol.
  7. tireg


    FaderTrader, while I can see your line of thinking, you make some assumptions that what works for you would work for everybody.

    That being said, of course we'd all like instant fills and less commissions, and minimized slippage etc. Hell, I want to be able to enter the market with whatever size I want with no commission and instant fills :) The question then becomes: Are some people willing to pay more for that aspect? Especially when it gets into pro-level stuff which can cost hundreds or more a month, which might save us a bit of slippage, but at the expense of commission (paid for use of data feeds & software)...

    Furthermore, as you should know, effective money and risk management has a more profound affect to your trading success than any fancy software entry criteria will.
  8. Buy1Sell2


    At least you did make one valid statement here
  9. Ok - so it seems the overwhelming tone is that successful DAY TRADING can be conducted using a platform that doesn't provide direct access, instant fills, etc.

    On other words, this forum thinks there is no discernable difference/edge between Schonex, Anvil, Hammertrade, Redi+, Blackwood and IB, Etrade, et al?
  10. Fader,

    Are you saying that you read and interpret the tape with your own eyeballs, or that you have "technical tools" that read and interpret the tape for you?

    While there are many exceptionally talented people on ET, I agree with you that there are also a lot of people here who consistently lose money (and use "loose" for "lose", but that's a separate problem). However, I think it would be a very small percentage who could attribute those losses to trading software. If we're not talking about software that's directly generating buy or sell signals, then the trader's discretion will always be the weak link in the decision-making chain. Software won't save a trader who lets fear drive them to buy tops, sell bottoms, or ignore protective stops. Even if every driver on the road were piloting a Mercedes S-class, there would still be people who cause crashes due to poor judgment.
    #10     Mar 20, 2006