Why do 5% of Traders Win?

Discussion in 'Psychology' started by oldtime, Feb 18, 2012.

  1. cornix

    cornix

    Some people confuse education with Education.

    One can have diploma of world's best university and still be as dumb as a cork. Actually there are many people like that, who's education exceeds their intellectual abilities.

    Unfortunately some of those, based on their formal education, are in the position to commit serious decisions, which influence lives of many other people (did I just say, those technocratic economists, who wreck the world's econ in their work to "fix" it? :D ).

    SKILL is the real education in it's best form. You either have the SKILL to do something well or you don't. It doesn't depend on university etc.

    P. S. I have university diploma and a post-graduate in philosophy, just to make others sure I am not someone who's simply jealous of those with diplomas on their walls. :D
     
    #501     Mar 5, 2012
  2. Education is not the key. Bill gates is a dropout, but I think he did best among his classmate. Zackburger is a dropout, but he became the youngest wealthy guy. Edson ....

    in some way, education hurts creation and innovation. education in some way made people think, act in bookish ways.

    that is why the world is full of PH.Ds, but their achievements are never a match against those dropouts.

    in all other things including trading,

    well disciplined
    independent thinking
    not afraid of failure
    willing to go out of his/her comfort zone and take risk and gamble
    willing to bear all the consequences of their gambling action


    I think those are the critical elements of success. education only makes knowledgeable/skillful worker, not thinker, not creator, not inventor, not entrepreneur...
     
    #502     Mar 6, 2012
  3. emg

    emg

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=236628




    Higher Education is the path to become a career professional trader. It is unheard to become a medical doctor, lawyer, or school teacher, Higher Education is not required. Math, computer science, and finance degrees are required.





    More proofs are coming on why more than 90% of small traders lose.
     
    #503     Mar 6, 2012
  4. cornix

    cornix

    EMG now you remind me Jack Hershey. :D
     
    #504     Mar 6, 2012
  5. #505     Mar 6, 2012
  6. ammo

    ammo

    your stats dont include all the highly educated that are running things poorly,DC for example,the court system,where are the stats for the percentage of educated who fail,those stats cover educated vs non,i wonder what the stats are for the 1% that make it and the comparison of educated vs non in that group,you are thinking inside the box..those 1% come from all walks of life..
     
    #506     Mar 6, 2012
  7. emg

    emg

    http://faculty.haas.berkeley.edu/odean/papers/Day Traders/Day Trading Skill 110523.pdf

    http://faculty.haas.berkeley.edu/odean/papers/Day Traders/Day Trading and Learning 110217.pdf
     
    #507     Mar 6, 2012
  8. emg

    emg

    Here is an example of an article how valuable Higher Education is:


    http://www.reuters.com/article/2011/07/28/us-goldmansachs-rates-idUSTRE76R7P620110728


    "Working for Goldman is no longer different than working for anybody else," said one former Goldman trader who left this year. "At the same time, if you have Goldman on your resume, that's still a premium.





    Easier to jump ship to another institution. something small traders cannot do because of low educated.


    Sames a being a medical doctor. A medical doctor can easily work for another hospital if not happy with the current one.



    HIGH EDUCATION!
     
    #508     Mar 6, 2012
  9. emg

    emg



    Trading is a career, however, if u are treating trading as a hobby or las vegas, there is nothing wrong with that. But, if u want to make trading as a career, Higher Education is the path
     
    #509     Mar 6, 2012
  10. ammo

    ammo

    i dont argue the value of higher education,but few if any on this blog work for the goldman,the majority of the trading population is the other 99%,point was ,and i cant define it, there is a quality in few ,that if they have it ,they will rise to the top,most likely with an education, but with or without,they will rise,the best ball player,golfer,surfer,trader,basket weaver,wood carver,artist,doctor,scientist,soldier..that elusive talent with in is the key that places them above their peers
     
    #510     Mar 6, 2012