It's time to get rid of misconceptions in trading

Discussion in 'Professional Trading' started by 4DTrader, Dec 4, 2007.

  1. Misconception 1: 95% traders fail, 5% succeed. Where do people get these numbers? Out of their own dreams? Outdated data from a foreign island?

    Misconception 2: It takes at least five years to make money in trading. What kind of five years, occasional dabbling, part-time investment, swing trading? Only intensive day trading should be considered, not other sporadic attempts. If you don't make serious efforts in trading, 10 years or 20 years won't make a difference. Give me a break, don't count your college trading club years, OK?

    Misconception 3: Trading is difficult. Trading is NOT difficult, it's one of the easiest and simplest jobs you can do in your life. Anyone with above-average intelligence can do it. We must not mix difficulty with confusion. Trading is confusing, because there is no formal training school out there, also because many people are trying to scare others into thinking that trading is difficult.
  2. Trading IS difficult. If it wasn't difficult everyone would all be doing it no problem. Don't let your first successful long position cloud your judgement. If all the pros and Market Wizards detail how difficult it is to stick with an approach and risk management and do it consistently over time, I doubt you can claim it is so easy.
  3. Nope


    I'll agree with your first two points but your third is a bit too basic for me. Yes, trading is simple in practice. More simple than say non invasive brain surgery indeed. But just like a skilled brain surgeon must master the difficult tasks of becoming proficient in his line of work, so must a professional trader.

    We should be careful here to discern the process of becoming proficient as opposed to being proficient.

    It's as simple as that :)
  4. dude trying losing 4 handles in 12 seconds on size in the spu and tell me its easy...that is 16 ticks meaning 4 full points in spu for those of you who don't know what that means. And then having it come back 8 handles in the next two 2 min bars. All futures markets now are fraught with shock and awe and it can be very very nice or very very painful really fast.
  5. open


    OP when will you try to sell us something given your most idiotic attempt to get people to think you know something
  6. Misconception #3, trading is difficult, to the undercapitalized trader. Think about it. In order to be well capitalized ($200,000+), short of being a trust fund baby, one must had to develop and leverage a skill set with discipline and defined risks. Trading (well capitalized trading) is easy compared to a lot of endeavors that require round the clock, menial and demeaning work to become well capitalized, that inludes going to college and getting an entry level job!

    The problem is most cannot delay ther gratifacation for a twinkie much less becoming a trader.

  7. Kind of silly, if you have a ton of money it does not make trading easier, it makes you care less about losses if you keep them small cause you got a big bankroll. But large account does not make it easier, just means you got more money to lose.
  8. I agree! I never understood the "undercapitalized" line. Why do people continuously say this? EG: 10% return is always a 10% return....whether on $10k or $100k or $1M. AND with low commisions now a days transaction costs in not relevant.
  9. You are missing the point! You have the capital because you have developed the skills to be a trader, nice job coach!!!!

  10. BSAM


    #1 I bet even less than 5% succeed.

    #2 This varies greatly. Oftentimes it takes longer; for others a shorter period. Lots of variables.

    #3 I agree here. People try very hard to make it difficult. One of the very hard parts of trading is forcing yourself to understand that it is not difficult. This often takes a long time.
    #10     Dec 4, 2007