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< 1% if you are talking about average and an a/c of reasonable size (> 100k).

Great post. I would like to add that edges tend to "disappear" over time, as more and more traders know about them. For example, I have been arbing the same instrument(s) for the past 4+ years, and I noticed that it is now a lot more diificult to find arbing opportunities compared to 4 years...

Lmao.

The spike is due to an increase in the total labour force i.e more new graduates or people who were previously not considered to be part of the labour force are now looking for jobs.

Edge.

I have been daytrading for 4+ years and my biggest daily drawdown to date is < 3%, in fact its usually no more than 0.5% on avg. The 25% drawdown in the example is dumb, no experienced trader will risk 25% on one trade, thats just poor risk management. Btw the long term guys (yes I am talking...

Why bother to trade if you have unlimited capital?

Being under-capitalized is one of the main reasons why so many traders fail, but its not the only reason, IMO edge is more important than capital. I started with 10k capital and blew up twice (tried many instruments and markets in the process) before I acquired a trading edge, my capital has...

China is going to love this alright. If they have any brains they will just hit the fed's bids and take this opportunity to get out of US treasuries.

You should stick to what you know, and what brings in the money for you. You will lose money if you try to trade out of "boredom".

You develop your edge thru trial and error, with some luck and persistence, you might discover an edge someday. And no, money management and all that psycho babble isn't edge, an edge is a set of "rules" that traders use to time their entries and exits.

Well said.

LR summed it up very well.

You don't understand what trading or risk management is about if you are talking about nominal returns. A trader might only be making 100k a year but its a hell of a lot if his risk capital is only 50k or even 100k, a 100-200% annual return isn't a bad result by any measure. Trading is just like...

Yep, lots of self-delusion in this business, but thats a good thing because it keeps the suckers coming back for more as they try to figure out all that psychocrap. :D

No, the reason why most traders fail is because they think they have an edge when in reality they have none. Psychology is just a sry excuse for pikers who have no real edge. I do arbitrage for a certain instrument day in day out and have been consistently profitable for the last 3.5yrs...

I make 200% a week, you suck.

Don't trade it. Real traders are not compelled to trade everyday, they only trade when opportunities present themselves.

Most traders lose on commissions in the end, its impossible to overcome frictional costs without a decent edge. Most traders think they have an edge, but they really don't.

part 2? lmao.