Since there's so many threads dedicated to debunking the incredible theory that 99.9% of traders are successful, I figure the only missing element is the empirical data to back up these debunkers. So allow me to get right to the point and pop the embarrassing question: Have you EVER blown up your trading account? Ya just might get the urge to lie through your teeth, but you should know that serves no purpose. Plus, who's to know? And, even if your cover is blown, who cares? So please answer truthfully.
Oops, that should read 100% loss of your money. That is, you are very near the level of zero, zip, nada, zilch (eg. forced liquidation). Otherwise, you voluntarily closed out your account because you were either so underfunded that it made no sense to trade or you were so mentally drained that you just wanted out at all cost.
Draw a line around [exchanges & whole wall street setup] and trace the money in-flow and out-flow. You will find it. If you consider listed companies, they are disconnected from this system after IPO. The only money flows back into the system is from their dividend payments. Other than that, it's all investors money that is flowing in and out of the system (mutual fund, hedge fund, retail account, 401K)... But there are following guaranteed leak from the system. * Brokers - they'll always make money * Insiders/MM - they'll always make money * Money/Fund managers - they'll always make money * Big fat salaries and bonuses - they'll always make money * Govt - they tax on your gain - they'll always make money So this is the overall picture Investor credit + dividends = Investor debits + Huge leaks No wonder why 90% investor will never make real money (inflation adjusted gain). The whole setup is counter productive and anti-social. What does it really mean when you read that Goldman trading desk made 15B in this quarter? Did they create something? Did they add value to society? Did mankind get any benefit from that? Most likely a dumb fund manager (who was managing your retirement account) bought high and sold low; and MM simply banked it. TRADING IS A ZERO SUM SETUP WITH HUGE GUARANTEED LEAK.
blew up 7 times, making steady money ever since the first 3 times i tried (more than 10 years ago), i made lots of money but then ended up giving it back and them blowing up the rest in a couple of months. clearly this was beginners luck, followed by typical slap in the face wake up call. but the last 4 times was different. i.e one of the last ones i proceeded to blow up in fast and dramatic fashion -- i decided to put 100% of my account in front month ndx options bought at the close of a friday. on monday morning i was down 80%. in another one, certainly the most memorable, i decided to buy the ES while it was plummeting and then averaged down many times. got killed before lunch time. another time, i decided to sell short some FDAX otm calls to pocket the premium and ended up losing 65% of my account due to a huge DAX surge. btw, i only tried this once, so guess what are the odds... also, 5 years ago i loaded on CTIC, a biotech that was about to reveal their phaseIII trials. i had otm calls, stock and some strangles with highly inflated IV's. lost about 70% of my account when the results were announced. it was only two years go, when i found my "personal edge" and let go all the irrational gambling mentality, that my trading turned around and I am now consistently profitable. looking back i dont regret anything i did, but certainly understand why the vast majority fail at this. i had the fortune of being able to replenish my trading account many times over without disrupting my way of life and had the patience of a saint to wait until i finally figured it out.