How to avoid being one of the 90% of small traders lose

Discussion in 'Trading' started by emg, May 17, 2011.

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  1. the1

    the1

    I made great coin on the move up into March 2000 and initially kept buying after the top. I quickly corrected my mistakes but only treaded water heading into the bottom in 2002. I didn't believe the bottom was in during 2002 and initially started fading the move up but like last time, I was fortunate to catch my mistakes early and correct them. It's odd I made the same mistake but in opposite directions during those years.

    Fast forward to 2008 I was schooled pretty well from the 2000/2002 experience and made more money in 2007/2008 than I did from 2000 to 2006, combined. It was simply a phenominal time.

    Like you, I feel blessed to have the financial independence and freedom that trading can offer but it has come at a hefty price.

    Over the years I have become addicted to a couple types of prescription drugs, directly related to trading. One was to treat the stress and the other was to treat the pain from a herniated disk I had in my neck. I have 4 screws in my spine and residual nerve pain in my left arm. That is just one of the battle scars that remains.

    Trading has given me everything I ever wanted but it has taken almost everything I've ever had. I credit Hinduism, Yoga, and Meditation to saving my life and getting me off all prescription drugs. I love trading and I hate trading. It's all I know how to do but I'm currently at a cross road. There's a pretty good chance I'm going to quit in the coming year(s). I've beat addition more than once but the addiction to trading is going to be my biggest battle ever.

     
    #41     May 18, 2011
  2. the1

    the1

    I'm an avid student of randomness and my strategy is based on the fact, emphasis on "fact," that the market is random. The laws of randomness ensure that what you describe doesn't work but it's entirely possible that there is much more to what you are talking about than a few sentences on ET could describe. There are definitely times when my strategy involves "catching a move," even if it's only a part of that move (which is always the case) but it's not my primary strategy. It's my strong belief that you cannot survive in trading unless you have a complete understanding of how to read and base your strategy around.....volatility! What worked in 2008 does not work today because of the difference in volatility. Once volatility increases trying to "catch a move" will fail miserably. It ain't so bad right now, however.

    The market is currently trend-stationary with no unit root problems, depending on your time frame. Wait until we switch to a non-stationary environment with unit root problems. Catching a move will blow up quick. The laws of statistics guarantee it.

     
    #42     May 18, 2011
  3. Ah, Mrs. Dalmation trolling around another thread, I see.

    Real traders have real loosing trades. Real successful traders have more & larger winning trades and smaller and fewer loosing trades. Real successful traders don't loose their homes and belongings holding on to stupid trades thinking they are smarter than their charts like some posters named for stubborn four legged canines.

    Thought you had me on ignore? You just can't help yourself from trolling threads posting lies can you.
     
    #43     May 18, 2011
  4. Sorry to hear about the scars. Remember you are more intelligent than your charts just not smarter.
     
    #44     May 18, 2011
  5. the1

    the1

    I like that.

     
    #45     May 18, 2011
  6. Opiates and benzodiazepines, a common killer. Most do not escapes the inertia of that deadly combo. Congratulations on your achievement. Insomuch as addiction to trading, objectify making money. After you do this, pan out to a wider time frame, daily, weekly, then monthly. You are right that trading intraday will eventually kill you. I have recently had that epiphany as well. Your system tho, I suspect has allowed you to map out where you are in the market at all times, and markets are fractal, so all you have to do is increase the wavelength and continue with your strat.

    Good trading.
     
    #46     May 18, 2011
  7. emg

    emg

    the1 has the best answer so far. read back his posts people
     
    #47     May 19, 2011
  8. Can the mods change "EMG" to "Negative Nelly" :D

     
    #48     May 19, 2011
  9. emg

    emg

    http://www.elitetrader.com/vb/reply.php?action=newreply&threadid=220767


    To Small Traders (LOSERS), to make it in this business, u must have a math and computer engineer degrees and JOIN THE HOUSE.

    OTHERWISE, Just lose!!!
     
    #49     Jun 14, 2011
  10. emg

    emg

    To small traders (losers),

    Do you really think u can make it in this business by reading books and subscribing 3rd party educational and system vendors without getting math and computer science degrees and upon graduating, join the house??


    If u believe u can make out in this business without getting degrees and working for the house

    U MUST BE NUTS!!!!

    http://articles.latimes.com/2011/apr/03/business/la-fi-amateur-currency-trading-20110403

    in the FX market alone, 605K people lose out of 615K annual.

    More than 90% of small traders lose. They just lose!!!
     
    #50     Jun 14, 2011
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