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90% traders don't make it???
- Thread starter kalashnicac
- Start date
Quote from BONDARB:
Even if you manage to get in harvard, Wharton, stanford, yale, or princeton the odds are still long that you ever actually get in a seat on a desk at a bulge bracket investment bank.
lol.
Princeton doesn't have a business school. And Yale's MBA is not so hot (as opposed to its undegrad reputation).
At the top programs, just about everyone who wants a job in Sales and Trading gets one. Chicago alone sent over 60 grads into S&T at bulge brackets last year.
Quote from union1411:
lol.
Princeton doesn't have a business school. And Yale's MBA is not so hot (as opposed to its undegrad reputation).
At the top programs, just about everyone who wants a job in Sales and Trading gets one. Chicago alone sent over 60 grads into S&T at bulge brackets last year.
Yeah was digging around Columbia's b-school's site. Its really not that hard to get a S&T job if you come from a top school. In fact, odds are that will be in supply.. Even if you don't get your top pick, your backups will be name brands.
http://www.columbia.edu/cu/business/career/employmentreport/2004/er2004.pdf
Risk Manager,
You said "I've been working as a broker, now as a salestrader/prop.
90-95% of the customers are losing in futures trading, 70-80% in stock trading. And the commissions at the company were/are excellent from a customer's point of view."
Why do they lose? Are they selling options or trading the contracts? Why do you think they lose?
Any other people commenting are welcomed.
You said "I've been working as a broker, now as a salestrader/prop.
90-95% of the customers are losing in futures trading, 70-80% in stock trading. And the commissions at the company were/are excellent from a customer's point of view."
Why do they lose? Are they selling options or trading the contracts? Why do you think they lose?
Any other people commenting are welcomed.
Quote from torontoman:
Risk Manager,
You said "I've been working as a broker, now as a salestrader/prop.
90-95% of the customers are losing in futures trading, 70-80% in stock trading. And the commissions at the company were/are excellent from a customer's point of view."
Why do they lose? Are they selling options or trading the contracts? Why do you think they lose?
Any other people commenting are welcomed.
The CEO's explanation was that they usually cut their winners short and therefore can't compensate their losses. IMO, this analysis is correct, but it's rather the symptom than the cause.
Why should they behave different, it'd be counterintuitive! It literally took me literally years to fully understand that I don't have to have more winning trades than losing trades in order to be profitable.
Trading is no rocket science, the reason most people fail is that in order to be profitable, you have mastery in several key areas at the same time: strategy, tactics and mindset/psychology.
You must have a statistical edge with regards to market analysis (tactics), must think and behave unnaturally since our brains aren't hardwired for a trading environment by evolution (mindset/psychology) and you must understand the importance of an overall strategy, i.e. statistics & risk management, i.e. must be able to recognize losses you can be proud of and winners you shoud be ashamed of.
Of course, it's good advice to cut your losses short. But the more often you do so, the more profits your winning trades will have to make in order to compensate the losses and commissions.
Cheers!
Quote from Riskmanager:
i.e. must be able to recognize losses you can be proud of and winners you shoud be ashamed of.
Excellent point... unfortunately, many ET'ers will never get this point... nevertheless, those few words above are profound and totally meaningful for those of us who have been trading consistently for years...
Unless a trader can relate fully to your excellent handful of words, I doubt that they have as yet attained trading consistency...
From personal experience and from discussion with my contemporaries, it is my firmly held contention that the best traders positively embrace and, indeed, look forward to 'good quality' losses...
Quote from Riskmanager:
i.e. must be able to recognize losses you can be proud of and winners you shoud be ashamed of.
Absolutely. I remember shortly after I started trading where I am. I have taken a winning trade, and my boss reviews it on the chart and says that it was not a good trade and 'dumb luck' that it was a winner. I think excepting that reply, instead of getting pissed off, was really important to me.
And I think I would add to that - you must be able to make yourself take trades that your 'head' says at the time look like losers, if/because that is the only want to stay disciplined and consistent to your method.
i.e. must be able to recognize losses you can be proud of and winners you shoud be ashamed of.
Absolutely. I remember shortly after I started trading where I am. I have taken a winning trade, and my boss reviews it on the chart and says that it was not a good trade and 'dumb luck' that it was a winner. I think excepting that reply, instead of getting pissed off, was really important to me.
And I think I would add to that - you must be able to make yourself take trades that your 'head' says at the time look like losers, if/because that is the only want to stay disciplined and consistent to your method.
I don't think there is any profession, business, etc that is worth doing if more then 10% can do it. If more then 10% could do it then there wouldn't be enough money in it.
Actually the higher the wash out rate the better for those interested in making a lot of money.
How much would Doctors make if 90% of the population had what it took to be one??
Take comfort in the difficulty.
John
Actually the higher the wash out rate the better for those interested in making a lot of money.
How much would Doctors make if 90% of the population had what it took to be one??
Take comfort in the difficulty.
John