Why do people say trading is the hardest way to make money, when it's just not true?

Discussion in 'Psychology' started by Coin Flip, Sep 23, 2024.

  1. Good Morning Overnight,

    I agree with you.

    Trading is hard for one reason in my opinion and that is:

    The trader does not have an answer of what will make him/her a lot of money year to year for the next 1 to 10 years.

    If the trader knew the answer, then trading would be easy.

    Because the trader do not know how to make a lot of money, then trading is VERY hard.
     
    #71     Nov 4, 2024
  2. This is the wisest quote. When I was younger I lived in this way, but then the struggles of life made me more "practical". Looking back, I wish I always followed this quote.
     
    #72     Nov 4, 2024
    Baron likes this.
  3. ironchef

    ironchef

    Welcome.

    Like Buffett and Munger, you could be the 1% who are profitable for > 10 yrs.
     
    #73     Nov 4, 2024
    Actuarial_Fun likes this.
  4. ironchef

    ironchef

    Not in blackjack.

    What I like to believe is day trading is more like blackjack than the slot machine.
     
    #74     Nov 4, 2024
    Sekiyo likes this.
  5. ironchef

    ironchef

    Many professions, especially in sales have the same problem.

    Trading is hard because it is almost a zero sum game. I take money from my fellow traders and vice versa.

    By definition if I win, someone else loses.
     
    #75     Nov 4, 2024
  6. deaddog

    deaddog

    I think wage earners are the only ones guaranteed to make money every day.

    If you own a business you have to be concerned that expences are less than revenues.
    You may have days, weeks or even slow months where you make less than you spend but they are hopefully made up for by good periods. If not you go out of business. Small business failure rate is not as high as trading but for the most part you need more capital to start.
     
    #76     Nov 4, 2024
  7. deaddog

    deaddog

    Add in commissions, fees and the spread and it's not even zero sum.
     
    #77     Nov 4, 2024
    ironchef likes this.
  8. savoir

    savoir

    The thread title is slightly inaccurate. The oft-quoted saying is, "Trading is the hardest way to make EASY money."

    Any job that requires physical hustle is a much harder way to make money than sitting in a comfortable chair monitoring the markets. Read Studs Terkel's book "Working" for some perspective.

    In trading, mediocrity is a real bar to success unlike in many jobs and professions. That may be one reason people think making money trading is harder than it is.
     
    #78     Nov 4, 2024
  9. Coin Flip

    Coin Flip

    Yes, but if you don't trade that often, it is negligible.

    On ES, commissions are about $5 round trip, which is 0.10 pts, and bid-ask spread is 0.25.

    So your trades have to overcome 0.35 pts. But you don't have to trade all the time and pay the 0.35 pts, you only trade when the odds are in your favor.
     
    #79     Nov 4, 2024
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  10. deaddog

    deaddog

    It's there and it's not a zero sum game.
    Add in a little bad luck, a mistake or two and human emotion and the odds are heavily in favor of the market.
    Look at the failure rate and your own equity curve. Am I wrong?
     
    #80     Nov 4, 2024
    Actuarial_Fun likes this.