Are we elite traders?

[BrandNewTrader]

Elitetrader. Elite Traders.

Are we? Of what? Elite of what echelon?

Certainly there are some very successful traders who come to this site. Some I'm sure who are celebrity names and will never reveal their true identity until some awckward moment on television in the near/distant future.

But really though. Just like trading, there are a bunch of pikers here who haven't graduated from highschool and/or college and troll, with varying success. Then you have the middle class. The traders who are somewhat (un)profitable and are looking for guidance, refuge, sanity, etc. Then there are very profitable guys who come here to feed the ego and give reassurance and nurture adopted traders (maybe?). Then you have wildly successful giants who come here to troll and research and amuse themselves.

I mean, if you had a $100M allocation and you came to this site, you would probably decide to run interference, subterfuge, etc. A middle class trader having an exceptional streak of gains wouldn't risk exposing himself, except on the Journal occasion. I believe Niederhoffer came here for a few posts and is immortalized. I'm sure there are other world famous names who have come here known or unknown.

Had some powerful God plant and coconut meat so was particularly contemplative. No one discloses their edge. Anyone who is making fuck you money is NOT posting journals. I wonder about the reality and imagination boundaries on this site and realize it is a mirror of real life... you only know if you are supposed to. Sometimes it happens by accident, but very seldom.

Some guys come here to ask how to value a call option. Some guys come here to talk about exotic duration and vol surface decay over assorted time and price horizons. The full spectrum, from simple to rocket science.

So for sure there are some fucking whales in here getting drunk, high and posting wise/wild shit. Every now and then.

Salute.

 

[rmorse]

What defines an Elite Trader? Is it AUM, experience, knowledge or simply returns and income? I assume you will get a LOT of responses. To me, if you can consistently make a living from trading, I'll put you in the elite class. Harder than it seems over time.

 

[K-Pia]

We as a whole ain't an Elite.
Maybe 20% have made money.
Maybe 4% have made Big money.
Maybe 0,08% have made Billions ...

You can't extrapolate past performances.

 

[Stockmarketmap]

Not sure what you mean by "wildly successful". Much of the "success" and "failure" ( as far as some of the accounts ( not $ accounts, but stories ) of fund mangers that I have read over 30 years ) have come from oversized / leveraged bets. And many of these were bets using other people's money. But this doesn't represent a repeatably reliable method, a rewarding and purposeful skill, and can always backfire.

The average lifespan of a "trader" using their own capital is probably 3 - 5 years max. as the constant battle against 1) random price movements 2) the use of leverage within the randomness 3) and the cumulative cortisol driven fatigue and the draining of real money from one's account (and resultant soul searching) ultimately takes it's toll.

"Investing" in the U.S. equity market ( using longer term time frames ) in a non leveraged manner tilts the odds in one's favor, with less effort.

 

[rmorse]

The average lifespan of a "trader" using their own capital is probably 3 - 5 years max. as the constant battle against 1) random price movements 2) the use of leverage within the randomness 3) and the cumulative cortisol driven fatigue and the draining of real money from one's account (and resultant soul searching) ultimately takes it's toll.

The edge I had is certainly gone, but I made a good living trading with "limited" capital for 25 years. As long as traders are will to adapt to the current market rather than trade the market we had at one time, I don't see why 5 years should be a limit. You have to be constantly learning and looking for an edge. When I was not willing to do that anymore, it was time to move on.

Bob

 

[newwurldmn]

Anyone who calls themselves an "elite trader," "a successful trader," "a consistently profitable trader" probably isn't or won't be for long.

Unless you have a real edge (like information flow or financing) every trader is a bad trade away from blowing up.

 

[ETcallhome]

Anyone who calls themselves an "elite trader," "a successful trader," "a consistently profitable trader" probably isn't or won't be for long.

Unless you have a real edge (like information flow or financing) every trader is a bad trade away from blowing up.

no, but in my case, there still is something called a lucky trader

 

[K-Pia]

no, but in my case, there still is something called a lucky trader

Lucky traders, there are few ones.
But even fewer recognize that they are lucky.
Those who don't realize that, just give back their fortune.

 

[K-Pia]

Anyone who calls themselves an "elite trader," "a successful trader," "a consistently profitable trader" probably isn't or won't be for long.

Unless you have a real edge (like information flow or financing) every trader is a bad trade away from blowing up.

I would not call someone that is a bad trade away from blowing up, a trader.

 

[ETcallhome]

Lucky traders, there are few.
But even fewer recognize that they are lucky.
Those who don't realize that, just give back their fortune.

So you and I agree. Recognizing luck could be a step in the right direction to becoming elite.

For instance, if you are having a good night at the craps table (a game which you clearly understand has odds against you), a trader might try to remember all the the numbers that were rolled, an elite trader will be looking for a polite place to get out and tip.