No, they're gamblers for the very reason stated in the clip you posted: They're "...trying to make a buck by predicting.." If you learn to recognize the big players tipping their hand, and let the action of price tell you where to enter so that the odds are in your favor, you're neither predicting what will happen on that particular trade nor are you gambling.
NoDoji- I agree. There are traders and there are gamblers in the market everyday. We see people blow out and see people have a big day then proceed to spend the next week or even day giving it all back plus some and we see consistent traders. I have been in this business awhile and around traders in the pits and electronic alike as well as watching 1000's of traders on a risk manager board. Seeing what works and what doesn't behind the curtain. The base hit traders that have a foundation of discipline and patience make it in this business. These are not the characteristics of a gambler. Instant gratification=Gambler... delayed gratification= the disciplined consistent trader. It is so very hard to maintain focus, patience and disicipline day in and day out but very doable. Trading is a grind. It is not always fun but it is a damn great business when you can finally curb the gambler in you. mp
(I kind of agree with him, but just for the sake of advocatus diaboli, let's play): Hey emg, you are looking at it all wrong. You pessimist, see it as 72% to 79% of accounts lost money, an optimist may see it as 21% to 28% of the accounts made money. But alright, you say, get more money to trade with and education. OK, where is the educated people with more money are? Hedge Funds!! OK so let's see how the HFs are doing, shall we?: "2012:The HFRX, a widely used measure of industry returns, is up by just 3%, compared with an 18% rise in the S&P 500 share index. Although it might be possible to shrug off one yearâs underperformance, the hedgiesâ problems run much deeper. The S&P 500 has now outperformed its hedge-fund rival for ten straight years, with the exception of 2008 when both fell sharply. A simple-minded investment portfolio--60% of it in shares and the rest in sovereign bonds--has delivered returns of more than 90% over the past decade, compared with a meagre 17% after fees for hedge funds." http://www.businessinsider.com/hedge-fund-performance-2012-12 So there you have it, a 17% per DECADE return on average for HFs. Now that's what I call higher learning, education, more funds and what did you say? Math?
you forgot one other characteristic....consistent traders have an edge...something they are able to do or something they know that very few other traders are able to do / know
EMG is correct and he`s doing a great job,here,on ET.I`d recommend EMG as a Guru to anyone.He starts with the great premise about the markets.Those who keep arguing with EMG are apparent and complete, delusional losers!
Hurricane- I definitely agree. Sometimes this edge can be in the form of understanding themselves as a trader and their psyche not just some trading strategey they have etc. Again this is all from dealing with them day in and day out; but ya definintely agree with you. mp
2 points EVERY single day on the ES is pure nonsense. Even if you AVERAGE 2 points a day, you are already some kind of trading superstar.
fx trader profitability in Q4/13 ranged from 22.7% to 46.5% - or if you prefer - losing traders ranged from 77.3% to 53.5% of US brokers' clients http://forexmagnates.com/q4-2012-fo...rex-market-keeps-losing-brokers-and-accounts/ a trader enters a Buy in an index futures contract during March 09 , still holds the position today, doubled a few times during the run-up day to days to weeks trading is something most people can learn, with a little help consider someone trading based on a 5min chart, during a 6 hour trading session they will see 48 price bars go by, two hundred and forty price bars each week the B&H trader looks at one new price bar each day, a far simpler trading process to learn and trade, and with a lower capital risk