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This is a repeat concern over and over again for arriving noobs. And its worth repeating that, yes, you can become successful from a very small capital base and go on to make yourself rich. It is unlikely though. Heres why it is unlikely. 1. Not realising that daytrading is the best...

The formulae and methodologies of hedge funds, institutions and major players are usually closely guarded. This is a long tradition of self interest. Secrecy is a convention I am used to and the methodologies I have developed will also be kept as secret as I can manage. Of course you will...

The reverse is true in respect of your claim. I have done both too in a professional capacity. There is more pressure where you are responsible for a large trading agenda for one account. The point to understand is the high degree of knowledge and skill that needs to be applied. This is...

Lets nail the answer to this endlessly repeated concern at ET for amateurs entering trading. Yes, you can begin trading with very low capital (margin for 1 lot) and become successful PROVIDED you play intraday and have devised or adopted an accurate and reliable methodology to exploit the...

There is a constant myth at ET that the more capital you deploy, the better will be your trading results. They won't be better. If inexperienced, if without huge study and preparation and cardinally if without sufficient savvy, you will lose. You will lose with a $5000 account and you will lose...

This is an excellent appraisal by Alan Greenspan. It was always clear that the Fed did not cause the housing bubble but as demonstrated repeatedly by the simple minded at ET and by politicians and the public at large, they require scapegoats for crises. The Federal Reserve is a major scapegoat...

The answer for you is give up. If there are less gyrations daily, as there has been in CL so far this year compared to last year then that means less points available per day. At the margin of trading performance this translates into traders 'dying'. Bees have been dying without apparent...

This is correct. Fooled By Randomness is a silly and unsustainable thesis. :)

I don't have time other than to look in on anything that might be interesting at ET. I avoid or try to avoid the mountains of garbage and inexperience garbled in so many threads. But occasionally you come across someone who knows something and it shows. I refer to your comment on your entries...

I never claimed you did require emotions of "fun, excitement, intensity or euphoria" in a trader. I simply wrote that they are not required. And adding to what I wrote, no values matter for an independent trader if you cannot devise or adopt a reliable methodology to exploit successfully the...

I value "discipline, rules, structure" but your opposite or alternative of "fun, excitement, intensity and euphoria" are not the qualities required for trading success. They are emotions of wanting or trying to be successful. There is a narrow path. Most do not find it. You see the plethora...

My precis went over your head; you will need, first, to read and understand Volckers speech putting his proposal, http://www.ritholtz.com/blog/2009/02/paul-volcker/ :)

I haven't had a high regard for Volcker so I was surprised to find he proposes a system that I believe is necessary. In short it is have commercial banks which are commercial banks and have investment banks which are investment banks (eg players in markets - capital, stock and derivative...

What you see among both the ordinary and the clever is their personal view of their fears often just generalised as a depressed description of present economic conditions. It is no more than a mantra: repeat bad often enough and you give yourself a depressed outlook and likewise repeat good...

Undoubtedly debate, even heated and colorful exchanges, should be allowed to flourish, particularly when argument is rightly being deployed for and against a particular system which has been (or is being) sold elsewhere. When the sparks are flying it brightens up any discussions forum. Such...

A common pattern is there but it cannot be fixed for most because they don't have the temperament or underlying savvy to trade as winners and make themselves rich. Lets journey a little among the causes. The need to lose is a primary reason. This is a consious or subconscious need. You...

Yes. :)

CL still continues to facilitate daily net profits, day on day, for building up a plan of consistent success for the individual trader. The number of gyrations this week were in the bottom of the range for CL, namely 3 to 5 gyrations per session (gyration = 2 legs, up & down or down & up)...

Fear in various ways keeps featuring in the Psychology forum. I do not underestimate the hindrance it can be to successful trading, particularly fear of pressing the button or as it actually is - fear of clicking the mouse to trade. But if you do not have a reliable methodolgy this fear is...

There is a problem in this which unsurprisingly has been missed by the many, almost everyone, including the clever and the stupid, who know the answer afterwards but not beforehand. Where Markopolous explains that everyone he spoke to called Madoff a fraud, it is neither conclusive nor even...