I am interested in trading commodity futures, but I question whether it is realistic for an individual investor to compete with pro traders who have decades of experience. I have a genuine interest in this investment vehicle and not interested in a get rich quick scheme. I am willing to put in the time and hard work to educate myself. However, I don't want to be naive when it comes to thinking I or anyone who hasn't worked as a professional trader on the inside can be profitable in the long run. Any feedback would be appreciated.
Yes, it is a realistic expectation. You can do it. Follow Mr. Bob's advice and do your due diligence. Do the work. And as far as the whole "people being profitable in the long run HAVE to be professionals" bit? I call bollocks on that mindset.
The only true advantage professionals have over individual traders is transaction costs and maybe orderflow due to size...
Wrong. Try research and the most critical thing in all of finance-- information. The market is so asymetrically slanted toward the pros, only good advertising and intermittent win psychological trap keep the day traders coming back for more. sorry, but seeing reality is the first step to success. surf
marketsurfer, you shouldn't be allowed to comment on futures trading until you've made an actual profit trading futures
Wow, this guy keeps dropping revelations. I didn't know that there are no successful full-time retail day traders. So not a single person here trades for a living independently? If that's true, then why would anyone buy your book?
That and maybe technology and market access (e.g. I have access to OTC products, while small size traders do not). Small traders enjoy tiny capacity requirements, low liquidity needs, no yearly reset of P&L, no regulatory framework etc.
The world is not that absolute. "Pros", what that is defined as, make and lose money and so do individual investor. You need to find your edge and do that over and over until it does not work anymore. Bob
I am trying to see what information advantage you are talking about. If anything, there is a great advantage to being small - if you figured out a way to track down inside(ish) information, you not gonna leak and chances of getting caught (or, chances of prosecution if you do get caught) are very small.