ot- living with trading

Discussion in 'Trading' started by Ivano, Jun 4, 2012.

  1. Ivano


    Hallo everyone,

    I hope I landed on the right spot( and subsection..)
    After I read (almost finished) stocks for dummies, I am understanding 2 things:
    1) Forecast the up and down is not so irrational, but follow some really nice logical mechanism
    2)there are people that live with this passion.

    I was lurking in a thread on this forum where it is stated that according to an authorative research a top trader has a 3% returns...
    it looks so odd to me:confused: . I mean how is possible that there are people that live with their own trading company if the yields are so low in the (few) winners?
    If this is true how is possible that a great and smart analyst( and it looks to me there are a lot of them in this forum) spend their time in such a complex activity when a safer bond or governamental fund can give a safer and equivalent yield?
    thank you
  2. Ivano


    Thank you ElectricSavant,
    I am starting to love this forum,
    compliment as moderator for your attention in pinpoint the exact post.
    3% over market?
    It does it means 3% on top of the S&P 500 in the case of American companies for instance?

    dank je,
  3. I think you are correct...3% over the S&P 500. But I have not confirmed it yet.

    Ivano, EliteTrader can become addictive. For those of us with a passion for trading means a daily visit here.


  4. Folks,

    Please try to stay on-topic. I really do not have time to delete your posts.

  5. Dustin


    That post was probably referring to hedge funds. Top retail/prop traders make many multiples of that.

  6. It's hard to make a living trading.

    Most of the people who write trading books do not make a living from trading.

    It looks really easy with their charts and indicators and "oh, I go long when MACD does this," but the books usually don't mention the equal number of times when it doesn't work out.

    Trading is not easy. It feels easy, and it seems easy when you read some motivational book disguised as a trading book, but it is not easy.

    Try it yourself for 6 months on a demo account.
  7. Ivano


    Thanks guys,
    Ehm... Hedge and options are not still my cup of cofee(as Italian /Dutch i don't drink thea), i have to build before some basis on the stock exchange world.

    Well I will try to dilute in the time my quesyions, do not know for instance if I should post the following question here or in a fundamental subforum since I am Newbe and some questions could look banal, and or even worse philosophical( no pragmatic)

    My first question is...
    I am a Credit Analyst in a big fashion corporation and I experienced the groups financials are not always reliable, also when are audited some areas can be tricky to judge. For instance the net profit is for sure determinant as influence the dividends and the P/E but for instance the other index that considers the capacity on the sales is not so reliable as smooth "cooked" net sales turnover is one of the most common area odd to evaluate, and the same for the inventory and sometimes also enquire about who audit the figures and the mgmt background could be determinant; fundamental analyst do this so called normalization of the figures from the gaap departures?

    If they do i have definitely some cards to play to switch in my career and enlarge my investing skills.

    Thank you for the attention
    Ad maiora
  8. Ivano


    Thank you to put my foot more on the ground;)

    I am doing, investopedia simulator, it is definitely not easy to live with trading, but could be that I could find a carrer path where the financial knowledge of the markets is appreciated ; Anyway still I am happy to learn new things, and I am experiencing you never end to know new things in the investing field, definitely studying Economics, Statistics, and Psychology and (following Soros) Philosophy, it is what makes me happy. I am too eclectic to stick with some training and do a routinely job. My Dream would be to escape to 9-5 one day to focus on my accademico interests, and if you start to have fun with a job you can work and enjoy it the working hours are not so heavy.. Also my passion for the finance it has been the end of a long way I wandered, too many theory in the accademico fields without pratica effect. Finance and Statistics are instead theory with some efficacy.

    I am feeling now I want to die trader whatever consequence will bring me.

    Plato taught me that not all the opinions you have to take into accounts, so it looks to me that value investors follow common sense and logic, and have less risk of a day trader (ceteris paribus) and I do not want to leverage on small cap to speculate, and still my hunch is that having some knowledge of the markets, and benchmarking the opinions, crunching the data , studying the insiders and the macroeconomic trends do not make so dangerous to play, especially if you trail stop losses at 10%, and watch closely the market to minimize eventual losses? Am I right or I am just dreaming? Anyway still thank you to give a Newbe this implicit recommendations, really appreciate, I am definitely playing with the fire, but this excite me a looot!

    Anyway another big issue is that I am currently working in the fashion world..while my traders friends say me that they never see a woman, and only the hr... So please let's learn to pick the right ones than to pick.. up the chicks will follow;) I will start with little steps as my running trainer taught me, I have definitely more fear than greed this should make me an equilibrate investor in the long term. Of course the book that says go long if stock do that is not something that can forecast the external variables trattare in the market, because probably exist right habits but not a formula for the success, an universal alghoritm good for everything, and but still if a company present a good quarter or the insiders buy there is a good likeability the title could go up the day after? Am I right or too simplicistic? Probably something in the middle
  9. #10     Jun 4, 2012