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There's the rub. There are very few barriers to entry for most small start-ups. If diligent, meaning thousands of hours of study and practice, the trader has a better than 5% chance at long term success. If that same person spent thousands of hours preparing to start a conventional business...

I think you're completely missing the point. In fact, you are actually proving my point. You go find a list of successful fund managers who were consistently successful over ten years. It's gonna be a surprisingly short list. Then compare that list to the number of hedge funds started. I...

No... I'm comparing an average person with the ability to invest $15K into either a small start-up venture or a trading account. Apples to apples..... He could go either way. His chances of success are far greater with the first. And btw, millions of people every year start companies with...

Absolutely, there are certain character traits that are helpful in both entrepreneurship and trading. But my career outside trading was spent teaching companies how to be more profitable/efficient and developing new products. It is astonishing how few techniques used to create a profitable...

Knowing where I am now, I would certainly do it again. But I'm positive that the same talents and effort would've gotten me to the same point had I gone through traditional entrepreneurial channels. That is the whole thing. In college I took a class on new business ventures and the...

Exactly!! The point is that conventional business wisdom is far off base. This industry is amazingly different.

I'm not talking about a company making $500K annual. I'm talking about simply turning a profit high enough to live on. National median I believe is something like $30K annual. With an equivalent initial investment, the trading approach will take far longer to reach that milestone. And in...

Well, in all likelihood, the "customer" on the other side of most of your trades is simply another trader. The efficient markets argument isn't incorrect, but it is certainly overstated. It would take far less activity to maintain efficient markets for the most part. And it doesn't matter how...

Sure, to an extent that is correct. Now go to the gas station with a 1000 gallon barrel. Fill it with gas, and go to the empty lot next to the station and try to sell your gas for a profit. This is very similar to what you are doing when you trade.

I agree with your sentiment, but as you read through the boards, people aren't saying that hedge funds are a business. They are saying that trading is a business and should be treated as such. If your remarks are correct, and all truly successful traders become fund managers, then that simply...

Not intended to be a tirade. Just as some feel compelled to offer unconditional encouragement, I feel compelled to offer a voice of reason from the viewpoint of one who has been through it. Those here seeking advice are at least under some assumption that those offering the advice are...

It seems that there are many potential traders here looking for encouragement. The most frequent advice is that "trading is a business". Also, "just like any other business", is an oft cited phrase. The idea that high frequency trading is a business just like any other, and will be...

You don't really need to go to that extent. Yes, I can see that you venture into certain commodities, but to say that you weren't long USD during that period is a false statement. It isn't a matter of trying to read into your chart patterns. Anyone with photoshop (me), can take a USD chart...

LOL, sorry I'm an idiot. I don't trade GC and didn't realize that it trades 100 troy ounces contracts. Also, you won't be able to do it via the mini. It is cash settled. But it would work if you didn't want physical possession of the metal.

Well, I'm bored enough today to have looked at your link. I'm not trying to be a jerk, but.... You should realize that posting results from a specific short time frame in the past tells most of us that you're running a scam. I.E. Although your posts were made in late Jan 2011, the acct...

You do realize that you're paying a 3% premium buying physical gold? I don't understand why you aren't simply buying the nearest futures contract and waiting for settlement. It is physically settled.

Below is the most accurate representation for success rate of new single establishments over ten years. The only question is which year are you talking about, and what defines success. I suppose that there are a huge portion that are barely turning a profit of $15-20K annual. Don't know...

Unquestionably, I'd suggest that trading just isn't your cup of tea. Given your rant, I'd say that you possess very few of the characteristics to becoming successful at it. Don't be ashamed. Building wealth through business is a much more honorable method and a more fulfilled life...

Incubator fund will cost about $3,000 to setup and doesn't carry any of the maintenance costs. Certainly, your $100K first year cost statement is a slight exaggeration though. More in the $50K range is realistic. -$25K fund setup -$10K audit -$5K tax prep -$10K administrative...

Should be easy enough to notice correlation to the broader market. Anything higher than about 50% correlation and his performance is simply average. OTOH, 20% correlation and it is respectable, but still not abnormal.