Face it! 95% of you wont make it, so go get a job!

Discussion in 'Professional Trading' started by ESResistance, Oct 9, 2008.

  1. Face it! 95% of you wont make it, so go get a job!

    Working for the "man" A fear that haunts us all (well me anyway), and pushes us to try our best to succeed in trading. In my first thread "Indicators are Liars!" Which discusses how trading does not have to be a complicated endeavour, we talk a little about the mechanics of trading. However I thought it important to also discuss the other important aspect of trading....Dealing with the fact that you are human! What does it really take to "make it"? Why do only 5% make it?

    I'd like to kick things of with an article written by a friend of mine. Please feel free to discuss and post your thoughts and ideas on this very important issue in trading.

    The Most Profitable Traders

    The below list comprises a number of different observations of myself and others through experience working with traders of all shapes and sizes, and is equally relevant to all. Some of the information is rehashed and/or might sound cliche, but here it is:

    They are experienced – Probably the most horrifying and worst myth shot out to anyone considering trading for a living is that you will compound millions in an extremely short amount of time. The only true way to make every day profitable comes through experience, and countless hours learning is crucial to longevity of success.

    They know the damage they are capable of – Notice I didn’t say potential or profits here. The best traders I know of understand their limits, and seem to focus more on what can go wrong than what can go right. They are not easily convinced of lucrative outcomes, and have a very high sense of self-awareness.

    They trade to make money, not to be right – They understand the strengths and possible pitfalls of what it is they do for a living, and use that knowledge to curb their emotional output.

    They have an edge and know how to use it – They understand that without it they wouldn’t last long

    They have a gameplan, and follow it explicitly – Each trade is planned and opportunities are scouted for before any trading takes place. They steer away from the killer of all killers: overtrading.

    They manage risk – Regardless of how much conviction they have on a trade, they will still do what they can to avoid the potential of any losses and understand rule #1 about trading: anything can happen.

    They work obsessively – They follow each turn, each piece of info that comes out in regards to their trade, and follow any underlying information relevant to failure or success.

    They only access the best information – Information rules in trading, and having some of the best translates to money. Using the wrong information leads to failure.

    They think about the trade, not the money behind it - Focusing on money can destroy your means to objectively assess the trade itself.

    They are constantly learning - Just when you think you know it all about trading, a new curveball gets thrown your way, not to mention there are continued means and methods to be learned about making money. Even the most highly successful trader I ever knew, a multi-billion dollar portfolio manager, has a team of fundamentalists and technicians come in to train and retrain himself and his traders.

    They are active – Activity sparks creativity, a very crucial part of trading.

    They have patience – They understand that the money will come, but everything needs to be in place, first.
  2. Mecro


    You missed two key points:

    They have significant CAPITAL and can afford risks you can't

    They have a significant & often exclusive edge.
  3. Pita


    I beg to differ and would guess that more than 50% could make it considering "to make it" is generating an income to live from. Just does it take a couple of years hard work consistency and ambition.
  4. :p
  5. Fatally wrong. Most traders started with a modest account and gathered their experience while building upon it. And we continue to pursue strict risk management. If you cannot bear the risks we take, simply trade smaller sizes.
  6. Edge, schmedge... no such thing as an "edge" other than front running or various forms of insider info.

    I've been trading more than 20 years.. and only one time did I have an edge. It was a genuine edge, so the regulators changed the rules and eliminated it.

    As for trading index futures.. never had an edge, never expect to find one.

    You want to make $$$?

    1. K.I.S.S.
    2. Discipline
  7. Mecro


    Have u ever traded at a prop office? Obviously not.

    You just confirmed my statement. More capital, more risk availability, more opportunity, more profits. Common sense.

    By the way, it's a known fact that Lack Of Capitalization is one of primary causes of business failure.

    You're deluding yourself if you do not think CAPITAL is a big factor in trading a financial market which is a CAPITALIST concept.
  8. ElCubano


    this gives me hope.... because I am stupid enough to have no choice but to keep it simple and I have discipline when it comes to MONEY....
  9. ElCubano


    capital is the biggest factor......without this on your side everything else wont matter...peace
  10. Humpy


    I am probably right in thinking that most profitable traders took years to fine tune their method AND themselves. OK so you can't expect to become a profitable trader overnight. But if you can find someone that has a similiar attitude and is profitable you could shorten the learning curve by learning from them. From years to weeks.It would be well worth the cost of 3 or 4 figures. Soon recouped and then all yours for ever !!
    The problem seems to be can you find THAT someone ??
    #10     Oct 9, 2008