Emotions is normal to have and we need to just learn how to manage emotions. Trading is not unique...its something we have to learn how to manage in relationships, social interactions and so on. I've a believer that those that don't know how to manage their emotions in trading...most likely have problems dealing with emotions in other social situations. Ironically, some traders get involved in trading because they want the privacy or they're the "lone wolf" types and believe in error they'll be able to rid themselves of emotions... They can't and nobody can. Yet, they can learn to manage their emotions although not that easy to do for many traders even for those that are profitable. Some traders (not all) navigate to automation because they believe they can get rid of emotions. Reality, they don't get rid of emotions...they're just using automation to help them manage their emotions. Seriously, automation traders can have emotions too. Some traders enter day trading when volatility conditions are low or feel safer at day trading when the volatility environment is low. I do agree about the leverage issue...too many brokers abuse it via offering crazy leverage but the same crazy leverage is offered to "all traders"...not to just day traders. Other types of traders obviously need to meet margin requirements to be able to hold their overnight positions. Yeah, there are other traders that enter the markets when volatility is high or markets going crazy. My point, regardless if volatility is high or low...emotions are always there and we need to know how to manage them. The other point I'm making is that there are "outside influences" not related to trading that has a direct impact on our trading as day traders, swing trading, position trading, scalping, long term trading or whatever. These outside influences can be relationship problems, death in the family, alcohol, drugs, debts, sick love family member (e.g. cancer) and so on. These are the type of "outside influences" not related to trading but do for fact have an impact on our trading. Simply, these particular traders would still have problems if they worked in another career. For example, think about all those people that snap in other jobs that we hear about in the news (e.g. postal worker, law enforcement, military, professional athlete or any other high stressful job)... Crap happens in life and if people don't know how to manage it...they'll snap too or do stupid things. Heck, one of my best friends spent 3 days in jail after he punched a nurse in the face at the hospital many years ago after she said something rude to him. He lost control of his emotions because the nurse wasn't caring properly for his mom at the hospital. He's a travel agent... Day traders aren't the only ones that needs to manage their emotions but the electronic world of trading...misguides many. That's the issue with margins, leverage and so on. At first, many doesn't see the real costs of using such...its just numbers on paper (computer screen). We only see what can happen if things go right while we "think" we can manage it when things go wrong or we failed to be prepared when things go wrong. I compare it to how people misuse credit cards, abuse student loans and so on. The U.S. and Canada have high debt problems involving just those two issues by themselves. Sorry, I'm not trying to change the topic but there's a relationship that I'm not smart enough to explain clearly.
%% Sure could be. And remember to add slippage + commissions...... [By taking emotions out you ,most likely mean controling them]And another flaw with a simulator; its not near as good as paper trading- the weakest ink/paper is better than the strongest memory. I am not going to bad mouth paper trading; i use[ paper] federal reserve notes all the time [US dollars LOL]
Although there is pretty amount of liquidity in currency pairs during day trading, one thing that is not so good is there is too much movement. You may be overtly excited and mistake all these movements for signals to enter or leave the market. But at the end most of these movements turn fakeouts.
Most fund managers don't give a shti about beating the mrkt. They make fat $$ win or lose by taking a percentage of funds, not profits. They're mostly scams - ie, would've been better in the index.
It is not that they don't care about beating the market, it is just that statistically, it is not possible for every mutual fund to beat the market all the time when they are the market, after net of fees. Once 80% of investors' $ are in indices, I think actively managed mutual funds will do better.
But year after year, most of the fund managers lag behind the index returns pre or net of the fees. what are the main reasons?
Could it be due to the "risk management" department at their firm or maybe its in combo with the fact that the fund manager knows he/she is still getting paid via a salary from their firm. Thus, they will still get pay even when they call in sick for the day or get pay when they go on vacation and they know they still have health/dental insurance benefits or they know they still have a pension plan ? I'm just thinking out loud.