The sad truth about trading is

Discussion in 'Trading' started by Index piker, Oct 31, 2009.



  1. thanks for explaining that,

    I wasn't sure how to break it to him otherwise....


    really, even from the floor on the exchange, that's not a good term....
     
    #41     Nov 1, 2009
  2. Get over it already, previously 'I explained it on pg4.

    Besides I'll probably outperform 95% of the traders on this site in the next 5-7 yrs anyway.
     
    #42     Nov 1, 2009


  3. I did that one time, trading openeing gaps
    Lost 4K on the exact same setups the next mont
    :)
     
    #43     Nov 1, 2009
  4. rwk

    rwk

    I think you have created a bit of a straw-man argument here. You don't know how many ETers consistently outperform their closest index -- it could be more than you think.

    You're also confusing successful trading with managing other people's money. Money management a different business entirely requiring different skills. There are perfectly valid reasons why a successful trader might not want to manage other people's money.
     
    #44     Nov 1, 2009
  5. Don't wait a year to come back and tell us how that is working out for you. Come back in 90 days. He may be a true genuis AT THIS (At This is all that counts) but the odds are many thousands to one against that.

    BTW, is it your religion that defines you as a trader or does the small c in catholic indicate the universal nature of your trading?

     
    #45     Nov 1, 2009
  6. Uh, in a word No.
    I've made no straw-man argument, you are just assuming I've made a false assumption concerning ETers returns.

    Perhaps , but most likely it ranges somewhere from slim to none long term against a comparable passive portfolio.
     
    #46     Nov 1, 2009
  7. I agree with your statement and the referenced statement from indexer, however, index piker has also found a way that works for him/her.

    It is my opinion that success in trading requires a tool bag.
    In it are tools that work for a specific task [market condition].
    Learning what tool [technique] to pull out of the bag for a given task [market condition] requires a degree from the school of hard knocks. It is hard to cut a round hole in a piece of wood with a screwdriver. A screwdriver is important and useful, but a router would be the preferred tool for the previously mentioned task.

    Most people run out of money, desire or discipline well before graduation.
     
    #47     Nov 1, 2009
  8. Dustin

    Dustin


    I'm surprised nobody picked up on this.
     
    #48     Nov 1, 2009
  9. lindq

    lindq

    That statement is absolutely incorrect and only demonstrates your ignorance of trading and investing in general.

    So you've managed to make some money over the past year, and now you're an expert in passive investing and just thought you'd drop by and let everyone here know they're wasting their time?

    I've solidly beat the S&P for 6 years straight as an active trader, which is a hell of a lot more than I can say for my accounts with passive, diversified investments.

    You are a classic case of confusing brains with a bull market.

    I suggest you chalk up your 12 months of gains as your luck of getting into a bull market run, and come back here in 3-5 years and report your results. Passive investing results over 12 months mean absolutely nothing. In 90 days you may well be sucking red ink. And a lot of it.

    In the meantime, there is a website that is far more appropriate to your general approach and your lack of experience.

    www.fool.com
     
    #49     Nov 1, 2009
  10. When I was a struggling trader, I used to believe what you wrote here, but the fact is you're wrong. The pyschological demands of trading are EXTREME... I really used to think it's as simple as telling someone where to buy and sell and then they do it and make money, but that is just not true.

    I also taught a few people and had dramatically different results... from one of them becoming a professional and making a ton of money to one of them completely leaving the business to a few of them still struggling 4 years after the experiment. the difference was not in how or what they were taught, which was very similar and i actually spent more time and energy on the ones who "failed" than the one who is still making a lot of money. looking back, the real difference is discipline. i also see that on trading desks... the guys who make it and the guys who don't... it's discipline and focus not analytical prowess that makes a winner.

    i will post a simple system with a winning edge later in the day.. something i've used for years profitably... and then i'd challenge readers on this board to apply it CONSISTENTLY for a year and come back and tell us what your results have been. i know from past experiments like this, not one person will do that.

     
    #50     Nov 1, 2009