Any chance you can copy the article into this thread? I'd be interested in what else the article has to say.
Motley Fools are failed day traders themselves. They are crap, dont listen to them. Lets try to keep some positivity out there. Happy trading to all.
Motley Fools...is a very fitting name...for them...as this is what they are...Had they had it their way...the universe would invest in the dogs of the dow...then they would be satisfied and all would be right with the investment world...Another good name for them selves would indeed be ¨the Dogs of the Dow¨... Neither of them have had professional training...and of course they do not have the most common tale tale sign of all...namely monthly statements... Traders that are professionally prepared to trade face a lifetime of trading... Again...as I have placed in many previous posts... Those services which sell books..seminars..coaching..cds..have nothing to do with the professional trading business...nothing...and those that value these services will add quickly to the 95-99% that foolishly think that they have professionally prepared themselves.... The professional trading business lends itself to very small numbers..as there are hardly any professionally trained traders because of the inherent difficulties of attaining such training....
You make some great points. It is interesting to take a look at the financial industry and see just what is being commercialized. Looking at the sprectrum of those who make money selling to financial industry employees and, then, those those who have money to play in the markets, there is a dirth of products for employees (professionals) and a preponderance of stuff for the player types. The markets now have a much broader base of participants than in the past. I remember when I started, a banker uncle (NYC type) was astounded that I (being who he thougth I was) was not investing but "jumping in and out of things". His sons were expert ivy league golfers and doing the usual career moves. I admit I learned the handicapping well to compensate for skills for the family annual golf tournaments. It was all fun and unusual at the time (Darvas parallels). I think that you are on the mark when it comes to professional market training. It seems to be so individualistic. Many differing paths to success. On one side there are restrictive covenants and on the other anything is fair game for the ignorant.
good points. its easier to make money off people making money (or trying to anyway) than making it yourself. state of the world in my opinion or human nature (ie copying others bec. too scared to do it yourself)?
I believe that statement and all others like it are vague and lead to easy misinterpretation. The word "trader" implies many things and cannot be statistically represented by one number. I also disagree with a lot of Fool information and see them as salesmen more than "traders" or "investors". I think when this subject is being discussed, it would serve the audience better to specify what "trader" they are referring to. I learned in a prop shop where that statistic doesn't stand. It was more like 7 of 10 "traders" make it in the first few years. "Traders" in this case means someone who has made the conscious decision to be or become a professional and will make the commitment to it. The "traders" I'm referring to are not undercapitalized and have a price structure that supports their learning curve and profitability, etc etc. I get contacted by many people who want to take part in the exciting world of trading. The first thing I tell them is that they can take their $5k to Vegas and gamble if they want illusions of grandeur and excitement. This is a business. A highly competitive business with a broad range of ways to make and lose money. Those who approach it as just that, a business, stand a good chance of making it if they focus on the risk more than the profit. I don't know who the Fools interviewed or polled, but I would imagine that many of those "traders" are also fools. My 2 cents. Best wishes to all.
May I add its more important to be consistantly profitable year after year. I would guess that the percentage is very small among those traders able to accomplish this. Its better to make 25% per year for 7 years than it is to make 175% one year, just to lose it back at the same pace the subsequent year (s). A good trader is a chameleon able to change with the market conditions and is where the true measure of quality rests. Michael B.
lol..Kevin knows me and my edits and how I like to trade...ohhh too funny. May I add that the observant qualities that Kevin display's is another mark of a good trader....