wanting to be right over making money?

Discussion in 'Trading' started by TGpop, Jul 30, 2010.

  1. TGpop


    i have been talking to somone who is distrssed as they (apparently) have been GIVEN a non directional edge which is very high win rate, and 10-15 risk reward. however he feels distressed as he hasn't learnt that much himself and doesn't feel like he deserves to exploit the edge...

    what do you guys think? should you avoid such an edge just because you didn't discover it yourself? should the trader continue develop his own methods, so that he 'deserves' such an edge.

    i will refer him to this thread if i get good answers
  2. ammo


    It takes a long time to learn how to trade,in the meantime you have to earn something or you willl go broke, so depending on the odds of going broke with that strategy,he should use whatever he can to profit and trade sparingly while he accrues knowledge and experience to one day make a descent living in this field
  3. TGpop


    well, we are talking, apparently, extremely big profits which would rapidly compound and dwarf any gains made by his forex. though ive explained that (it's a us stock thing) liquidity will eventually run out in stocks , whereas with forex his trading size could be handled easier, though i'm wondering i is case on the liquidty of SSFs and CFDs
  4. Redneck


    Ammo is a noble sole – I am not……

    In my view (Ammo notwithstanding :)) there is no nobility in trading – every day I work to identify traders who are in distress – and exploit them to the fullest….

    Now if the “learning to trade/ earning it” part entails being able to hang on to the money – then that is a completely different story

    Trading IS only about making money….

    But then you’ve got to hang onto it after you make it…. And therein may lie the challenge…. if he’s not done the due diligence

  5. You should ask him if he would feel distressed or guilty if a close friend or relative gave him a big ticket item for his birthday, christmas gift, house moving or apartment moving present et cetera (e.g. new auto that's paid for by the gift giver). ???

    That's a serious question because I personally know a few people as such and they would have the same reaction too had someone given them a trading edge. My point is that it's not market (trading) related. Instead, they just have a problem (feeling guilt or not deserving) when someone does something unusually nice for them.

    These types feel much better about themselves if they've earned it on their own merits. However, the reality is that they forget that they've done something that someone else saw as to be important enough to shower them with such a gift even though he/she may feel what they did doesn't equal being showered with such a gift.

    What should he do?

    He should do whatever he wants except for giving it to someone else. Also, of course he should continue trying to develop his own methods especially since the markets is forever changing. Thus, it wouldn't be smart of him to stop developing his own methods just in case this edge gift given to him doesn't work anymore in tomorrow's market conditions as in a few months or years from now. :cool:

    P.S. As long as the gifts aren't conditional (e.g. sexual favors)...his distress should quickly go away.

  6. NoDoji


    Making money while limiting risk is THE goal. As for "being right", I was "wrong" 4 out of 5 times today, but because I'm a master at limiting risk, still netted enough money to pay the bills.
  7. There are two main trading themes:

    1. Making money, or

    2. Learning the markets.

    1. deals with being right as your friend will find out.

    2. Learning the markets is not on the table in this thread.

    There is no competition for taking the market's offer. People who want to make money are people who want to be right.

    There are two things: traders and markets.

    Markets are always right. This is learned when learning the markets.

    The market dictates and traders obey.

    Your friend is talking about an edge to beat the market. Too bad.

    For newbies only: this is a jem ridden post.
  8. Doesn't feel like he deserves exploiting this edge? :]

    Has he been recently castrated, does he have man boobs?

    Is he giant walking vagina with flapping labias? :-]
  9. The biggest mistake you can make in trading is to run your mouth about an exploitable edge.
  10. Give him some viagara. Sounds like performance anxiety to me.
    #10     Jul 30, 2010