Trading against the Pro's?

Discussion in 'Professional Trading' started by rasblake, Mar 30, 2006.

  1. rasblake


    I am trying to figure out if this concept of having no experience trading and hooking up w/a mentor- opening an account w/5-10k
    and using margin is really away to become a profitable trader or is just a "scam" to get newbies to start an account and burn through that and move on to the next newbie.
    Sorry for the run-on sentence.
  2. You'll lose 10k before you make any money. But, no it's no a scam - it just allows for literally no margin of error.
  3. Yes... you are correct.

    And you have demonstrated more capacity for "critical thinking" with one post...
    Than many show in a lifetime of posts.

    90% of the people here have not figured out a basic fact:

    The securities industry exists for only ONE reason...
    To transfer wealth from YOUR pocket to THEIR pocket.
    It's the only reason Mr.Bright comes here...
    And it's the only reason this board exists.

    You have a shot at becoming successful...
    As long as you continue separating the 10% truth from the 90% b*llshit.


    :cool: :cool: :cool:
  4. fhl


    Is that the way you feel about the auto industry, food industry,etc. Is all industry just an attempt to separate you from your money, or are all the others providing a service of value to consumers whereas only securities firms are self motivated. Maybe it would be better if there were no industry and we all just made what we needed for our own use, eh?
  5. rasblake


    I am trying to figure out what that 10% actually is.
    Is it:
    1) Understanding how the specialist acts for the specific stock being traded.?

    2) Finding the most profitable trader you can find for a mentor.?

    Thanks for your responses.
  6. squeeze


    All your examples are attempting to seperate you from your money whilst providing as little service of value as possible.
    It's how they make the most money.
  7. the securities industry in general exists to help the engine of capitalism grow wealth, which it has done for scores of years

    how you choose to participate is up to you.

    it is an ultimately democratic and wonderful institution

    you choose what and when to buy. and you take the profit or loss.
  8. All of the above posts are correct - brokers/prop firms don't give a crap about you - they just want commish. Whether you generate that for them though losing or winning trades doesn't matter much to them since learning to/teaching someone to trade is a nearly insurmountable task.

    If I told you that you could do 1 of 2 things:

    1. Start a prop firm and train people to trade successfully so that they would stay with you ad infinitum, or

    2. Start a prop firm and not give a crap about the trades themselves, but rather the commish generated from them.

    Which proposition presents the greatest risk/reward ratio to the prop firm owner? #2 obviously.

    That being said, prop firms do serve a purpose. If you are able to trade successfully, the leverage they provide will allow you to generate an income (maybe even a large one), which is more than I can say for the retail traders here bragging about the 25% they got off of a 10k account last year.

    The choice is your, just keep your eyes open, and don't get discouraged by a false start. I didn't.
  9. I did not say the our dear Capitalist System was Evil.

    I just pointed out the OBVIOUS...
    That it is driven almost solely by profit motive... and is ultra-competitive.

    The problem with > 50% of the people on this board...
    Is that they believe super-smart, super-ruthless people running businesses under the Capitalist System...
    Actually want to "help them get rich".

    This bizarre phenomenon is by far ** most overt ** in the trading business...
    Because the securities industry systematically preys on the Greed of unsophisticated people...
    And floods all media with ridiculous and deceitful ads...
    Like Supermodels and Calvin Klein zombies with laptops taking easy money away from Pro traders.

    Please note that lying is legal.

    Otherwise rational people who understand that it takes 10 years to become a doctor or lawyer...
    Believe that they can join the ultra-elite world of successful traders...
    By buying a few books and programs.

    Greed will NEVERr allow them to let go of this fantasy.

    That's why I like the original post. The man understands Life 101.


    :cool: :cool: :cool:
  10. 1) No
    2) No

    The specialist has nothing to do with your performance as a trader.
    A mentor is invaluable but only as a risk manager. He can teach you his strategy and his style but it probably won't fit your personality. The only value of a mentor is that he tells you to stop trading when your overtrading and making other stupid amatuer mistakes. He helps you survive long enough to get profitable. BTW if he's making money of the amount of commisions you generate then watch out cause he'll propably push commision intensive strategies on you (like scalping low priced stocks with 1000s of shares).
    #10     Mar 30, 2006