tons of traders left after the dot com bust...including myself...I dont remember how trading was between 2001-2007 but i assume there wasnt much difference? I know when internet trading became popular in 1996 that the whole flow became erratic and much more volatile.Instead of taking days for a setup or stock to make a complete move in its trading channel it could take a single trading session.Your reaction time had to be much quicker. Einhorn of greenlight capital? is losing money this year...He s the one who shorted lehman from 70 all the way to ZERO.So while some are making money now,dont beat yourself up if your not.MAin thing now is capital preservation-not lose money.
Why would you even trade that situation. Scalping aapl for 10 cents is one of the most idiotic schemes I'v heard. Secondly, trading news events in this vol is also hair brained. I've been making a killing in the futures in this vol. But I would never try to scalp 1000 shares of aapl for a couple cents.
I think after the panic we could be well headed for a 2003-2004 senario of low volume little volatility and low priced stocks. this could last for a long time. It will posible to make a living if you grind as it was then.
Some of you are talking like there is only one type of strategy out there -- trend following. Personally my trend following strategy has done great (much better than expected) while mean reversion and event based stuff have done neutral and negative, respectively. The VIX won't stay this high forever.
Any trader who needs a trend to make money is not a good trader. The movement over the past few months has been the best I've ever seen.
I couldn't disagree more. I know a lot of very good traders. Guys to whom making $50,000k+ in a day (on good days) isn't very exciting. At least 50% of them had career months in September. Some absolutely demolished their records. If and when volatility dips they will simply make adjustments to prosper in that environment. There is aways a way to make money. You simply take what the market gives you and use it to your advantage. The traders you know are either more suited to a lower volatility environment or they aren't very good. Just because a trader goes on TV doesn't mean he knows his stuff. CNBC even had Timmy Sykes on a few times, and Kudlow (while not a trader) has his own show !!
Funny you mention the AAPL situation. I faded that very move and, at the time, had no idea what the AAPL/Jobs news was. I didn't really care. I knew 100 was a psychological level and that my indicators were telling me the move was too extreme, too quick and was sputtering. I went long 200 at 98.00 and stopped out at 102.00. $800 in literally 4 1/2 minutes. It felt good!