The only way to appreciate wealth since the beginning of time is to take it from suckers. Just because I trade and I take money from suckers in the markets, does that make me better than someone taking from suckers out of the markets? No, I don't think so. That said, the BEST book on trading is Reminisces of a Stock Operator. Buy it, love it. Then you can spend your trading life pretending your jesse reincarnated.
"It is with utter astonishment that I read so many of these threads. The number of poor souls who still look for fail-safe methods/systems is frightening! " It is actually encouraging...I hope they keep coming and coming and coming... Trading is the process where by the wealth of many migrates to the hands of a few...
Have to disagree that it is all "sucker" money we take- a lot of the big players who are NOT suckers provide cash flow to small traders nonetheless, kind of like the lions who make the kill and eat most of it but then leave scraps for the hyenas to eat. While its perfectly fine to think of yourself as the reaper, its not necessary to think this way and there are other ways to look at it as well. I do agree w/you that Reminiscences is probably the best book for a trader to read; the second best one on Wall Street, not 100 years old but more than 30 years old, is "The Money Game" by Adam Smith. Oops, got to throw in a quote: "Don't get in a shootout if you've left your guns at home. The markets are no place to be trying to impress people. The only way to impress anybody is to stay on your toes, be consistent, and trade within your means." -Marty Schwartz
darkhorse good point! Am perfectly happy to be a hyena. Got a few scars on my butt but so far I can outrun them.
What I meant is the only way to gain wealth in ANY way (in a reasonable amount of time) is to take it at someones elses expense. Assets do not grow at 20% a year unless this is happening and even when it is they still struggle. zero sum game. I win = you (or someone else) lose. There is nothing wrong with taking the order flow. This is a good way to make consistant money. Especially if you have your liscence to steal. (i.e. on the floor). Just keep an eye, not for the lions, but the cement truck. I'd like you to name some big names that aren't suckers in the marketplace? They are the opposite when dealing with their clients, but in the market do they do any better for themselves? Over the years the number of moronic decisions I've seen is staggering. My description would be the big players are more like unskilled zookeepers who throw the meat (their clients) into the lions (people with some idea). They get their fingers bitten and often lose hands. Then they get too close (encouraged by a rather stupid fed chairman) and get eaten too, but not before they make a grab for other zookeepers. Nothing will give me more pleasure then when, (not if) we see a few go the same way as their clients. I hope their employees are holding lots of their own stock. Wealth Destruction on this scale makes me feel sick and should not be allowed. Recovery, please, only on CNBC
ROFL you are missing my point. You can't name the big names I am talking about because they don't advertise, at all, anywhere, and they couldn't care less about Joe Public. Who needs publicity when you are such a badass that you regularly turn money away and you don't even give most high net worth investors the time of day let alone the Dagwood Bumsteads of the world? Don't assume the world is only what you can see...the True players not only care nothing for the spotlight, as a general rule they abhor it. "I see pain, much pain." -Clubber Lang
It is no harder today, then it was 30 (or a 100) years ago to find out who is holding what. I don't consider CTA's running money management algorithims to be Big Players. The REAL (i.e. wads and wads of it) money is made on the service side. These are what I consider the REAL big players. Thats the way it always has and always will be. It has nothing to do with publicity, its about ego. Have a look around your trading room/pit/whatever, it's no different no matter what line you throw.
I'm not talking about CTA's either, but if you don't consider guys making 100 million a year for their own pockets (from trading profits not from fees) to be big players then I guess we are on different planets...
my answer to this question isn't going to be a yes or a no. it is this: while there might not be "secrets," you may need to be hit over the head with some things you have already heard before to realize their importance. laterz