About the 95% statistics. Just a question

Buy1Sell2 · Mar 25, 2008

Quote from Don Bright:

What I mean by "obvious" (can't answer for sungong, LOL), is simply that people don't tend to continue funding a losing venture. And, we as a Company, have strict guidelines for additional capital contributions. It doesn't do us or the trader any good if they continue to "re-fund" an account. We have had to pull the plug on several over the years ....of course they end up somewhere where the owners probably don't care how much they lose.

Don

A trader still could have less money in their account than when then they started ----without refunding.

Don Bright · Mar 25, 2008

Quote from Buy1Sell2:

A trader still could have less money in their account than when then they started ----without refunding.

Sure, anything "can" happen, and we probably have a few break even types, even after a few years, but very few, just doesn't make sense to keep at something that just doesn't work for you.

Now, mutual funds, financial planners etc., may just keep you under the amount you funded for decades, you oughta see my wife's Calpers accounts, LOL.

Don

fluttrader · Mar 25, 2008

Quote from Don Bright:

Valid point, and it's kind of interesting (to me anyway), how the level of new trader has improved since the advent of licensing requirements. Not that licensing has anything to do with trading, but it seems to have brought on more serious people.

All the best,

Don

At your firm , there is feedback, support and profitable traders, things you don't have when sitting at home.

Since when and what licensing is required now ?

Don Bright · Mar 25, 2008

Quote from fluttrader:

At your firm , there is feedback, support and profitable traders, things you don't have when sitting at home.

Since when and what licensing is required now ?

"Sitting at home" guys still get the same attention, of course.

I think it was 1999 approx. when the Series 7 became a requirement. Here is a link.

www.stocktrading.com/steps.html

Don

fluttrader · Mar 25, 2008

Quote from Don Bright:

"Sitting at home" guys still get the same attention, of course.

I think it was 1999 approx. when the Series 7 became a requirement. Here is a link.

www.stocktrading.com/steps.html

Don

Thanks, any special ergonomic chair you have over there ?

Don Bright · Mar 25, 2008

Quote from fluttrader:

Thanks, any special ergonomic chair you have over there ?

(If this is a serious question)...some traders actually buy their own special chairs.

Don

TraderZones · Mar 25, 2008

Quote from ManhattanTrader:

interesting article here

trading expectations

Rather more someone's opinion, not anything to hang your hat on

sunggong · Mar 25, 2008

Quote from Buy1Sell2:

Why is it obvious?

Why is it obvious that I'm still trading?

Because when I quit my corporate job, I made sure I was going to make it as a daytrader. Failures were not one of my options.

I treated this like starting a business and worked my ass off for about 6 months until things began to click.

Like I said earlier in this thread, that 95% failure rate is a bunch of bullcrap.

Seriously, who really cares what % of people fail? If you truly believe that you can make it and work diligently and seriously, daytrading is NOT THAT HARD.

If you fail, most likely you never tried hard enough.

fluttrader · Mar 25, 2008

Quote from Don Bright:

(If this is a serious question)...some traders actually buy their own special chairs.

Don

Yes, question is serious , I thought special chairs would be included.

drosengarden · Mar 25, 2008

Quote from lindq:

Obviously, no one keeps statistics on the success or failure of traders. (With the possible exception of prop shop owners, who ain't saying.) To do so would require some sort of registration or tracking mechanism. God forbid.

But I think it's fair to say that of 100 people who start on the path to trading, no more than 5 are profitable after a couple years.

The remaining 95 have managed to feed the system with their dollars, supporting brokers, advisors, software vendors, data services, websites, publishers, convention producers, prop shop owners, and those of us who are fortunate enough to be around to take their money in trading.

The 95% figure is a general rule of thumb, and that's close enough for someone to figure their odds. Which are just above slim and none.

I'm a new guy to this game - but here SPECIFICALLY for the purposes and reasons that you mention here. I don't want to be one of those 95 out of 100.

How do I avoid that? I've papertraded a system that looks REAL GOOD on paper so far. 12 consistent days of profit (after commissions - considering I'm not missing something on my commission schedule - Scottrade - $7/ equity trade - and nothing more - right?) I'm looking at a 16%+/- profit in 12 trading days.

BUT - that's on paper - what will I really expect with all those OTHER PROFESSIONALS OUT THERE? How is it that a new guy like me could get "taken" by the experienced likes of those seasoned traders? What am I missing? (Because I sense there is something here that I am missing that will cause me to lose my shirt in the REAL trading environment - when I'm seeing HUGE profits on the paper environment.)

Your HELP is greatly appreciated!!!