after start reading Tony Oz's book, it changed my idea about trading a lot. I was wondering whether trading is just like gamble without technology. Now I have to give up this thoughts. Tony did use his experience and technology he has to beat the market. Trading market shows us a big economics picture-- the supply and the demand. Who gets to know the exact meaning of the picture, he will win. Tony is one of them. Yesterday, I went to the information session of Lion Group. A trading guru told us that he made quite stable income after he go into the door. I agree with what he said. My feeling is that most of the trader won't get into the "door". And I also feel that the door will be much harder to get in after there is such an occupation--day trading. hope that trading gurus on this board can correct my thoughts if I am wrong. roumeo
Hope gurus can pick up one from the following: A: Gamble--100% Technology--0% B: Gamble--75% Technology--25% C: Gamble--50% Technology--50% D: Gamble--25% Technology--75% E: Gamble--0% Technology--100% Thank you so much.
For someone that knows what they are doing... Market risk=restricted (varies a lot... Can be EXTREMELY small, or shockingly large) Technology=to 75% Intuition=to 100% Execution=to 50%
I have read this more than once, but am not sure where. "In GAMBLING you create a risk that does not exist, in TRADING the risk exists it is a question of who HOLDS the risk." This of course is not to say that people me included have not gambled in the market. But trading needs to be approached as a business. If I buy xyz can I sell it to someone for more than I paid? If I sell zyx now will I be able to buy it cheaper later? And why? Same as if you run a convenience store. And you could argue that many businesses are a gamble that people take as opposed to a sound business decision. 8 or 9 new businesses out of 10 fail within 5 years. Check out the sales jobs in the Sunday paper, good salespeople make a lot of coin. Why so many help wanted ads, most people aren't that good. The bottom line is you need to approach it as a business and plan on spending a lot of time at it.
To tell the truth, before I started to do some research on this industry, I had thought that the trading is like gambling. After I start to read books and talk with trader friends, thoughts have changed a lot. Long-term trading is 50% kinda like gamble, but day trading is mostly depending on your tech. I think that this industry will be shining in the future. I would like to join in it. Thanks guys
If you have a positive expectation from your trading then trading is like being the house. If you have a negative expectation, then trading is a gamble.
sometimes, I am really moved when I got so many replies when I met questions. From this, I can feel the passion of this industry. Everyone is willing to share their experiences and show their helps. This is really exciting.
I think that's where the confusion lies. I like to see "real trading" as speculation. There's a big difference between speculation and gambling though the subtleties are often missed by the general public. True speculation is taking on calculated risk. You know the odds are in your favor when you trade using some form of strategy(hopefully you do! haha). Whereas, in gambling, you know the odds are stacked against you(lotto, roulette, etc.) but you still bet and play in BLIND HOPE of winning. Trading is definitely a viable career option. It's just that it's NOT a very easy career option. haha. good luck! trader99
Roumeo, You need two things : Knowledge & Discipline. Problem is : 1) Most traders mistakenly think they've got all the necessary knowledge to make a fortune out of trading. 2) Most traders do not abide by their trading plans. P.S. Knowledge = Proper education + Properly tested trading model.