Its worth the 18 bucks in many multiples. http://www.amazon.com/gp/product/00...f=pd_bbs_1/102-6633385-6416969?_encoding=UTF8
romik, I'm an absolute clone of Trader A, even worst. What do you think about my proposal? To be successful, you have to do exactly the opposite of mine. If I go long, you go short; if I go short you go long; if I withdraw the money from the account, you put it in. Otherwise, we won't be successful if you don't always do the opposite way.
i don't need u man , i am working on a concept of reversing trades of a totally "trade-clueless person". What needs to be established is the following, if a person enters trades without knowing why/when/etc he eventually should blow out his account 100%, of course there will be some lucky streaks. but eventually the day should come when it will be kaput Hitler. Now, if you reverse his trades at the same time as he enters his, keeping same profit and stop targets, what would happen to you?
Scenario 1. He goes long and you go short: - If he's wrong then it's ok, no problem with this one. - If he's right then you won't lose big since he will exit early taking small profit because he has a lose aversion. Most of time, he won't let his profit run. And when he exits, you cover your short position. Scenarios 2. He goes short and you go long: - If he's wrong then it's ok. He will argue with Mr. Market until he get a margin call. But some people find easy to accept lost with the short side than with the long side since the HOPE seems to not exist in this case. - If he's right then you need to be careful with this case since he probably attempt to hold on, he will feel some sort of satisfaction and revenge then he holds firmly his hammer and you might exit before his action. In my opinion, it's better to enter a bit late of his action. Because when you enter a bit late you will have time to remark his reaction face to his position. But this method is similar to the trading based on tips, your decision is depended on someone else decision. What happen if that person were sick or on vacation?
man u r over complicating this. let's break it down using a typical example. I don't really know when the fundamentals of a property market. I have recently moved to a new town where a what used to be a commercial dock is regenerating and residential developments are being built. Each condo is selling for $400000. I've done some research by comparing these prices to similar developments in other towns and the property market has gone up there in the past. I decide to buy the condo with a view on the marina. 2 months down the line it now costs $350000, as the developers could not shift the apartments quickly enough (everyone has there targets and liabilities, incentives created lower prices). I didn't really know what I was doing, simply followed some past trend and followed my emotions really. If someone was to reverse my decision and "short sell" that apt, they would have made $50k by now. The point is that when a person does not understand how the financial market operates and u give him $100k (real or virtual), he will eventually lose to the entity in the know. He will win some, but eventually he will lose due to many reasons and eventually blowing it on emotional grounds. If you reverse his positions, what would happen to you? Obviously he only has $100k and loses all of it, ie he is f...ed, you on the other hand have allocated 10% of your capital and reversing his trades only in direct proportion to his.
A similar idea was mine posted here: http://www.elitetrader.com/vb/showthread.php?s=&threadid=55658 The solution to the problem of the loser eventually getting to be a better trader is in the numbers. If you keep fading a bunch of people, based on statistics you should be ahead. Employing a bunch of newbies and in the process keep getting ride of the good traders, should be nicely profitable. If we throw in that your are their brokerage or tradinghouse, you would get usage, platform, margin fees and other goodies too...
Well, i will agree partially. Why would you need a bunch of newbies, you only need one, how lucky can that person be? Do you know any traders that generate income consistently by luck only? He will probably need to have some basic principle of the market, as his decision making has to be at least a little bit logical. How many people do that, f...ing enormous amount? They believe it's time to buy, when really it's time to sell. and anyway none of this matters, what matters is that that person does not need to become a successful trader, how many people do anyway? .............Guys I just realized...i am a little stoned....continue on Monday...nice weekend all
You don't need a person that doesn't know anything. You need a person that thinks they know everything about the markets but has never traded. I think that prop shops should give their traders a simulator, but tell them they are trading live. If they make money the first month, the prop shop will pay out of its pocket. But, a vast majority of new traders lose money the first month, and they would more than finance the few winners. I guess it depends a little on what they're trading though. I think the real problem may come from execution. A new spread trader might lose money every day because he always gets hung or tries to leg into trades and ends up putting on bad levels. So, the trader may have been right if she had been able to get the level she was trying to get.
Well, because he might not be consistent enough. Consistency is the key. After 2 bad months he can have 1 good month and so forth, screwing up your average. By playing 10 or more people you can be sure that 80-90% of them consistently will lose money... Here is my evil plan: 1. Hire 10 newbies who have to use their own little money, let's say $5K. less is OK too. 2. Teach them a bullshit swing system with futures. Why futures? Because that is one fast way to lose it all quick. Options are too complicated for the average person. Why swing trade? Because you don't want them to scalp, remember you are taking the oposite side let's say 3 times. That is hard with a scalping system. So theach them a wide stop loss swing system. 3. On average I would say 1 will make money, 2-3 tread water, the rest will get whipped out. So your company made 6x3-3-little commission=5losers x 3 multiplier x $5k >>>75 K probably in the first month. 4. To those who lost it all, offer the company's money and say, that it wasn't their fault, and you give them another chance, and if they become profitable they can pay it back. You are basicly hedging yourself, because if they keep losing, you still make twice as much and if they win, they have to pay you back. 5. To the 1 winner, you can say, he should reinvest his winnings. There is a good chance that more money will screw him up, thus becoming a loser. 6. Put a new add in the paper that you are hiring and repeat the process.... If it really works out the way I described, you can use a bigger multiplier, like 5 or 10. Again, you are basicly like a casino, playing the numbers game, chances are that there will be no group where more than 50% is going to be the winner. Even if it is 4 winners to 6 losers, you are ahead....