Are you STILL excited/happy with being a daytrader as the day you first started?

[sandy1]

Quote from Hydroblunt:

You should have stayed a lurker cause that comment right there says it all. I'll wait to see if you explain urself since maybe you simply omitted clarifying that. But let's just make something clear, all participants of any market cannot win, in fact, most HAVE to lose in order for it to be worthwhile for the winners.

Now, I said it was simplistic.....but from www.investopedia.com...the definition of a zero sum game is:

"What does it Mean? A situation in which one participant's gains result only from another participant's equivalent losses. The net change in total wealth among participants is zero; the wealth is just shifted from one to another.

Investopedia Says... Options and future contracts are examples of zero-sum games (excluding costs). For every person who gains on a contract, there is a counter-party who loses. Gambling is also an example of a zero-sum game.

A stock market, however, is not a zero-sum game because wealth can be created in a stock market"

http://www.investopedia.com/terms/z/zero-sumgame.asp

Look at a chart of GOOG....you think for everyone that made money someone lost it as well? Nope.

Sandy

 

[Jayford]

Yeah,

Sandy has it correct. Everyone can be long a stock. If it goes up, they all win. In reality it doesn't work that way, but it is far from zero sum.

Futures on the other hand, there is a short for every long by definition.

 

[ElectricSavant]

sandy1 don't forget about commish....so if we want to be picky...neg sum...

 

[sandy1]

Quote from ElectricSavant:

sandy1 don't forget about commish....so if we want to be picky...neg sum...

Michael,

You must be with the wrong broker!!! You must not get full ECN rebates and posting on ARCA! Just kidding....I don't want to be accused of having an agenda!

Now I see how threads go off on all different tangents!

And no, I'm not naive enough to think everyone wins!

Sandy

 

[ElectricSavant]

Darling,

Good Trading to You...

you are awesome!

Michael B.

Quote from sandy1:

Michael,

You must be with the wrong broker!!! You must not get full ECN rebates and posting on ARCA! Just kidding....I don't want to be accused of having an agenda!

Now I see how threads go off on all different tangents!

And no, I'm not naive enough to think everyone wins!

Sandy

 

[Kastro_316]

Let's put this to rest before the mods delete it.

Sandy, It's good to have you on here. With 6 posts, it seems everyone has fallen for you
I am not trying to be a grumpy trader, because believe me, I am very profitable. So, just because I may come off "negative" does not mean I am a lousy trader!

Take care, and good luck to you OPoster.
-Kastro

 

[Cheese]

Index futures are of course a zero sum game.

However apparent losers likely as not are not losers. If you are hedging stocks then a loss on your derivative protection namely, the futures contract, is a gain on your stocks. Also where you close a profit to an apparent loser on the other side of your trade: that trade could be held for a profit from that point onwards. Or where your profit is closed to a counterparty who is opening a position for a longer term hold wherein that counterparty may subsequently make a real profit whatever valuation loss occurs to that position in the interim before that player closes it.

The market is facilitating differing classes of player whose aims can all be mostly resolved satisfactorily. It is a non sequitur to imagine that there are only speculative losers versus all other winners. If that were so ipso facto losers must as players run out chips or otherwise withdraw leaving the market to dwindle if not cease.

 

[Hydroblunt]

Quote from sandy1:

A stock market, however, is not a zero-sum game because wealth can be created in a stock market"

Wealth is never really created, it is merely transfered. This view requires you to look globally and consider resources of the planet.
If you add up all the real participants of the stock market, you will show that is actually neg sum due to transaction costs. If asset inflation is driving up the prices, then everyone who does transactions in $US is automatically losing buying power, sometimes more than they win from their trading or investing. It's a very simple concept, it's the basic reality of rich vs poor. Can't have mostly rich ppl, just does not work like that.

 

[40yotrader]

Quote from volkl23:

So fellow traders... what were your original motivations on becoming a daytrader. Has your drive waned since? Are you still happy with this "career"? How long have you been in it?

Thanks everyone! [/B]

After losing my job I thought trading would be a exciting venture.
Been trading realtime for 3 1/2 years. Nothing exciting about it.
It's like standing around a ATM machine on a timer. About once every two weeks I hit a new equity high. Just need a successful plan and then work it. Most days I don't trade...hang out at the gym, eat out lunch, do a little shopping. On days I trade I just enter my orders. Not much excitement in that.
Most exciting thing about trading for me was coming up with the plan. Everything else is pretty dull (setup system, check for trades, enter orders, check fills, check statements, pull funds from account, submit tax witholding, etc.)

I plan on trading until I have a comfortable retirement nest egg. I'm projecting I'll be done with trading in about 6 more years.
My wife started out with me in this venture but gave up due to the lack of personal contact. I'm happy with my results but honestly, I'd much rather have my old marketing job back. Not much personal satisfaction in trading (yeah, the dollars are great but that's about it).

 

[Kastro_316]

Quote from 40yotrader:

After losing my job I thought trading would be a exciting venture.
Been trading realtime for 3 1/2 years. Nothing exciting about it.
It's like standing around a ATM machine on a timer. About once every two weeks I hit a new equity high. Just need a successful plan and then work it. Most days I don't trade...hang out at the gym, eat out lunch, do a little shopping. On days I trade I just enter my orders. Not much excitement in that.
Most exciting thing about trading for me was coming up with the plan. Everything else is pretty dull (setup system, check for trades, enter orders, check fills, check statements, pull funds from account, submit tax witholding, etc.)

I plan on trading until I have a comfortable retirement nest egg. I'm projecting I'll be done with trading in about 6 more years.
My wife started out with me in this venture but gave up due to the lack of personal contact. I'm happy with my results but honestly, I'd much rather have my old marketing job back. Not much personal satisfaction in trading (yeah, the dollars are great but that's about it).

Great post!

For me, the height of my excitement does not come from trading exclusively, but what I can accomplish with my trading career. Trading opens doors for the entrepreneurial side of me. With the money and knowledge I get from trading, I can branch off and start a little business, or Invent and market something. When you trade and when you have an open mind, the world is yours!

Never limit your self to just trading, one style, one market, one direction. Open your mind to the world around trading, and soon you will see many 0's added to your bank account.

-Kastro