More than 90% of small traders lose. One of the main reason is they are a gambler. I have created a thread Gambler vs Trader: http://www.elitetrader.com/vb/showthread.php?s=&threadid=215740 Small Traders lose. They just lose!
Do big traders lose big? or do they "Not Gamble" because they have more to lose? Does their bankroll decide their trading style? Sounds like a losing bet to me... ES
Big Gambler Traders lose. But, they are not called big traders. They are called Rogue Traders. Rogue Traders are: Nick Leeson, a prop trader for baring bank Jérôme Kerviel, a prop trader for Société Générale Yasuo Hamanaka, a prop trader for Sumitomo Corporation and so on. There is a difference between Big Traders vs Rogue Traders <iframe title="YouTube video player" width="640" height="390" src="http://www.youtube.com/embed/hkDg2Y_owOE" frameborder="0" allowfullscreen></iframe>
If a Rougue Trader won, and got away with it--- he/she would be considered a big trader. history is written by the winners--- on wallstreet also.
A rogue trader is an authorised employee making unauthorised trades on behalf of their employer. It is most often applicable to financial trading, and as such is a term used to describe persons - professional traders - making unapproved financial transactions. In other word, when a professional conservative trader becomes bored or got tired trading the conservative way, he/she suddenly become a rogue trader. They want to get rich quick!
and ? Wonder why we never hear about those rogue traders who make money and lots of it for their firms? obviously every unauthorized trade does not lose.
Banks no longer hire prop traders. They hire a prop firm to minimize the risk. It takes 1 prop trader to bring down a firm. Look at nick leeson, he bankrupted baring bank.