Hello everyone. I'm pretty new to this forum as well as this business. There's this question I'd like to ask. If I happen to offend anyone, I greatly apologize. It's not my intention, but like everyone else here, my intention here is to learn. There are many traders out there that are very intelligent and have a vast knowledge of trading, but they don't make money. Why is that? I know the answer is psychological, but it seems these guys know everything about it too. They seem to have the right attitude, but they're not profiting. If a trader has the right trading plan, money management, and psychology, how could they still fail? Maybe it's from overtrading, or maybe I perceived these people having the right psychology when they really don't. I'm interested in knowing what your opinions are. My objective is to find if I have any of these weaknesses, so I can work on them before I begin trading. thanks, Andy
specifically, WHO WOULD YOU BE TALKING ABOUT HERE???!? heheeeeee i'd say, information overload...but then again, if i knew the answer to my problem, i wouldn't be in my position.....so, read my quote below.
Andy - I don't think there is any way for you tell tell if you are going to have any of those weaknesses until you are actually trading and you encounter them. Trading will make you do things you would swear you would never do...
Read "Fooled by Randomness" by Nassim Taleb for an excellent discussion of the non-psychological reasons why traders don't make money. See: http://www.invest-store.com/cgi-bin/elitetrader-bin/redir.cgi?moreinfo.cgi?item=17319 Happy trading, Traden4Alpha
You can have the best tools available, but if you don't use them properly your project will still turn out bad. The answer to your question is simple... improper application of any one of the tools you mentioned, as long as you indeed have a great trading plan, sound money management plan, and emotional control. Great trading plan but didn't follow it, great money management plan but didn't follow it. great psyche but wigged out.
"I am a (so called) trader that does not make money (yet) -- not 10 cents. I would make more money working at McDonald's and that is the sad truth. Don't listen to anything I say. If only everyone else here like me would put out this same warning. I can give one real tip, however: unless you fully know what you are doing, don't put $1 into the markets. YOU WILL LOSE IT. The markets are COUNTING ON YOU to throw your dumb money into it! My Gordon Gekko quote above is the absolute truth! Unfortunately, it took me 3 years to realize it. If you don't make money either, read it a few times." Hmmmm... its better to work for McD than spend hours on ET? ...
i'm not knocking this web site at all; it's great. i'm just saying that, it still comes down to YOU..it won't matter what books you read or what posts you read on a message board. personally, i love ET.... to answer your question, i would say no. long term financially, it is not better to work at mcdonald's than obtain knowledge here. short term, the pay off would be bigger for me at mcdonald's..hehe but, long term, the knowledge i get here may some day pay off a lot more than the few dollars an hour i'd get at mcdonald's. but you smart guys already know this......