http://doubleyoke.com/2011/04/05/perfect-practice/ Practice does not make perfect. Only perfect practice makes perfect. Talents can be harnessed and developed through perfect practice. The perfect practice is a total of around 10,000 hours of conscious, focused and deliberate efforts. In âOutliers: The Story of Successâ, a well-written and thought-provoking book on success by Malcolm Gladwell in 2008, Gladwell examines the factors that contribute to high levels of success. Throughout the book, he repeatedly mentions the â10,000-Hour Ruleâ, claiming that the key to success in any field is, to a large extent, a matter of practicing a specific task for a total of around 10,000 hours. The magic number of 10,000 hours was the average number of hours the pianists, violinists as well as athletes, composers, writers, artists, even criminals spend to achieve their success. 10,000 hours is about 3 hours a day over 10 years. Give another 5 years!
The real money was never in daytrading. ----------------------------------------------------- I fought that saying when I was at Schonfeld. I use to argue the point against Victor Neder...and his Spec List Group all the time back then. But right under my very eyes, the key traders that were making serious money (Other than Mr. Rearden) were not day trading, they were building portfolios. Two years later...BAM ASSET MANAGEMENT was formed and Schony became a partner. As I watched all my friends start to hold positions for months, I still fell into the trap of 'SOES BANDENT ENGERGY' and the "Excitement" of day trading. And my ventures in day trading in Chicago with Schonfeld were more than exciting. Of course I found an opportunity to jump ship and end up in the PE world having far more fun and success than I did in my ventures of day trading. There will always be the Few who make money for what ever reasons... But Day Trading seems to be dead except for the few on Elite Trader. The wash out was huge since 08 and the new regs seem to really put the Nail in the whole deal. Most day traders on ET sound like retired folks who are not trading for a living but trading to supplement their income, which I can understand.
I believe this to be a fact -- I guess it's all relative. I'm a daytrader that is profitable but I'm in a mode of transition to mostly focus on longer-term stuff (a few days up to a few weeks).
Why are people so obsessed about daytrading? Daytrading never worked for me and never will. Very few are good at it. I do much better swing trading and with options. Good luck to all
this is a common misconception. In poker, when both participants commit 10.000 hours, still only one will win. 10.000 hours does not equal win.
the reason longer term trading `works` is the wealth effect. read my earlier posts I have explained what it is. wealth effect in itself, it also a form of perception.
God are you so full of shit. I don't know where to start. 1) Rearden was one of MANY guys who did GREAT while daytrading at Schonfeld. The problem is, fools like you started during the boom/easy days and never correctly learned how to trade. There was a period of time when all one had to do was type in 4 letters and hit the buy button. Then things got tough and most of the guys like you were washed out. When I started in 1991 day trading was good, but you had to work at it. Then the easy times came when EVERYONE was making money(like you), not much skill needed. Guys with no risk management skills got bailed out all the time. Then in 2003 or so things got a bit tougher and you had to again work at it. Now...things are tough, but if you put the time in and work your ass off, there is a ton of money to be made. Plenty of us around daytrading stocks, futures, etc and doing very well. The problem is, a lot of traders are still stuck in the 1998-2003 timeframe when you could hit homeruns 4 days a week. These guys refuse to adjust and just bleed money over time. Daytrading is far from dead....you just have to work VERY hard these days. 2) Vic Neiderhoffer....GREAT example. Not shocking that you worship a blowout trader. VN is a very bright guy and probably a good guy. But...he is a HORRIBLE trader. Here's a guy who has no idea what the words risk management mean. Sure he had a few nice runs, but he blew out twice losing all his investors money. What good does it do anyone who had money with him if the end result was they lost everything. Not once , but twice. 3) BAM. Do yourself a favor. Think, do some research before you spout things you have no idea about. DB was by far the best daytrader/trader ever to trade at Schonfeld....made his fortune that enabled him to start BAM by daytrading/short term trading. You are a bigshot.....I am sure you know someone who can explain to you what happened when DB got away from short term trading. I am sure even to this day he still does short term/day trading type strategies. There is another guy who is kind of big who does some daytrading as well....his name is Stevie.......something........ummm.....Stevie Cohen...that's it. I am pretty sure I would listen to a guy like him who has been a top fund mananger for a long time, then some blowout trader like VN. 4) SOES bandit energy ? Correct me genius...but by the time you and the other 60 guys were hired in like one week at Schonfeld arrived, SOES-trading was long gone. 5) You are a huge PE guy...we get it. You do mega deals all over the world from your loft in Texas. Then go to Ibiza in the summer. What's your next trip? Miami Beach in August? Back to Chicago in February? I got approached by a PE guy like you a few months ago. About some oil deal in Texas. Probably a friend of yours. Was so beyond full of shit....sounds like someone I know. He claimed that Crude was going to hit 140 by June 1. Anyone who invested in his plot of dirt would be rich. ZZZZZZZZZZZZZZZZZZZZZZZZZZZ.....people like you should stick to running infomercials at 3 a.m.
Daytrading defeats many or most amateurs. No surprise there. As always with failed amateurs they switch the blame elsewhere and typically try to pin all or most of the blame on daytrading as a mode of trading. But actually its only about being unsuccessful; it just happens to be daytrading. At institutional and big player level trading IS judged on a per day basis. They don't use the description 'daytrading' but they often do nail down their success to 'per day' results and analysis. Daytrading is a huge opportunity, continuously, and particularly so when you choose a volatile market (eg CL). But the failing amateur is defeated twice over: firstly being unable to get in his mind a stable order of viewing live data (namely price gyrations on charts with whatever contexts/lines/indicators that are needed) and secondly being unable to function properly without a suitable trading temperament (calm, robust, unstressed playing).