Did they have some true edge, like being floor traders or paying low commission or something, or they could be profitable just the same if they traded from home like the average ET trader ?
I believe it's possible to beat the market, especially intraday when you're not nearly as likely to be killed by a gap (yes, there's the occasional trading halt, but that's quite rare unless you're a particular trader I know ). When I follow my rules and my plans I make one profitable trade after another, with an occasional loss. You can look at my journal and see that. When I don't strictly follow my rules and plans, surprise, they are losers! Now tell me: What does following or not following MY rules and plans have to do with the market or the level of competition therein?
Hey, if you can avoid a good kicking and are a masterful deployer of such techniques then I'm really pleased for you. I'm telling you that it is usually a perverse strategy for most mortals in such volatile environments. I'm sure you're far from being a pervert though, regards
Nobody ever said it is easy to execute. The logic is more or less straight forward, but the execution will wind up the average punter until they settle into it. Learning to fade an entry/exit is difficult to come to grips with initially. regards f9
The more you know the luckier you get. From your posts you were profitable for 5 years. If true why quit and start a thread like this unless just to stir the pot?
neutrino: Markets are indeed efficient (although I do not like the word "efficient"). The return is less than the normal returns because the industry (brokers, etc) that does not take risk has to be paid. You have to understand that your gain in trading is another man's pain. To make it you will need to be in the top small percentage (say 20%). How to do it: that is your problem to solve. Is there is a small consistently profitable group? Answer is yes . Proof is: A large number of people lose. Where does that money go? it cannot disappear. The money goes to that small percentage of people who know how to get it. You are right in your assessment, but not your conclusion. The way you will use to make your money is the reason why you will say I earn money, rather than it was given to me. It is not easy to make money in market. That is why there is only a small percentage who makes it.
Getting it is not nearly as important as keeping it is. I have a young friend (23 year old)who started trading about 9 months ago and had taken $10,000 up to $110,000. In the last two days he lost it all. He had just quit his job about 4 weeks ago because he could tell he was "born to trade", he could just feel it and the results he was getting obviously showed that to be true. Ego and poor risk managment is a killer. The sad thing is that his is not really a unique story, it happens to varying degree's every single day, and it happens to guys who've been around for 20/30 years too. You never "have it" in the market. You always have to be learning and open to new info or your days are number IMO.