Hi New to trading, and this forum, (first post). I work full time and have almost no trading experience. I once dabbled (well, gambled) using IG Index spread betting few years back (Turned £50 into 5£00, then closed out around £200 in a few lucky/unlucky currency trades). But anyway, I have skimmed some posts and I understand that 95-98% of traders lose money, whatever the instrument. Fine. What I want to know is this: Those guys who got onto the trading grad schemes 6 years ago when I left university, a good few still have their jobs till today. I'm talking, JP Morgan, GS. They studied stuff like economics/math/engineering. I am not a genius, I do ok. Most of them are not geniuses either, well, compared to me. So wtf are the Investment Banks teaching 21/22 year olds that ensures a much higher success rate than the average dabbler? Or is it simply because, like I did few years back, the vast portion of that 98% were gambling. i.e. the had no freaking clue, while the guys at the bank spend a couple of years learning the ropes before ever having their own trading account? I purchased the book 'The Rookie's Guide to Options' by Mark Wolfinger the other day. Almost half way through the book, good read so far. For those who trade for a hedge fund/bank, can you recommend some sources that the pro's will all know. I know that won't give an edge per se, but if I fail, I'd at least like to be able to say I was armed with the knowledge and gave it my best shot. Cheers
The bank says to the trainee: here young fella, if you wanna make it in life, you man up and go take business from that James Blonde guy, tell him his gonna win, you hear ? I am curious why would you regard 90%+ win rate is only "higher" ? Isn't it more like dead cert money in the bank territory, don't you think ?
do you know what IB does? They don't really make money anymore, most of it comes from the customer anyway. They either 1. Act as the middleman and let the customer take the risk while taking a small premium 2. Take the risk on behalf of their customer and then hedge the risk for a bigger premium when you have a large amount of capital backing your trades, you are much likely to win. like buying more lottery tickets for a season.
trading is technical analysis and done by machines and outsourced to hedge funds. they hire programmers and people with mathematical and programming skills. the bread and butter of these firms is still fees and commmissions, and advising fees and management fees consulting fees etc.
They likely just ban you for Forums where you'll get taught how not to trade 99% of the time. Yes I blame forums and wanna be demo trading guru's ( I mean profitable LOL ) for most of Retail traders stupidity and losses.
It's amazing to read the ignorance on this forum. I mean I get it, most people on here have little in the way of pedigree. But still, I'm not a doctor but I do understand the knowledge they have and why they can practice medicine and I can't. LOL. Unreal.
Reason you can't practice medicine is because you would be inclined, like most people here, to curve fit the chart on heart rate monitor machine and come up with some misplaced predictions about what will happen in the future. The trouble is, the heart doesn't care what happened in the past, and it will only beat according to the current circumstance.