Statistically, it is unlikely for any venture to succeed (insert any small business here), with 85%-95% failure rate in 5 years span. Trading is the same, probably even higher, due to the fact that so many come in unprepared. It's unlikely to be successful at anything, that much is true. An astronaut for instance, nearly impossible. But they exist. You obviously started this thread to instigate arguing, and your "evidence" to support your claim is only your limited experience, presented as an absolute truth.
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Day Trading is a pipedream.
- Thread starter guy990opl
- Start date
Statistically, it is unlikely for any venture to succeed (insert any small business here), with 85%-95% failure rate in 5 years span. Trading is the same, probably even higher, due to the fact that so many come in unprepared. It's unlikely to be successful at anything, that much is true. An astronaut for instance, nearly impossible. But they exist. You obviously started this thread to instigate arguing, and your "evidence" to support your claim is only your limited experience, presented as an absolute truth.
Quote from guy990opl:
This is one more exaple of the typical retail trader...delusion is rampant !
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Quote from konviction:
I think the reason most traders fail is not because they are day traders or not, or because they dont have a trading plan, an edge, or any of that...
The reason I think most fail is because they're not passionate about Trading or the Market in general. There in it for the money, and as most other entrepreneurs would tell you, going in business for the money isnt the way to go [...]
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Your making enough enemies, you really want another?
Actually, going in business for the money is the way to convince outside investors. They want to see someone with MBA and real management experience to take care of revenues meeting expenses.Quote from konviction:
There in it for the money, and as most other entrepreneurs would tell you, going in business for the money isnt the way to go
Quote from guy990opl:
* * *
Anyone with 0 qualifications, an internet connection, a brokerage account and some money to blow can call himself a day trader. In case there is any doubt.
You are pointing out the things that make trading so great vis a vis other ways to earn money.
Perhaps you are not a dinosaur like I am, as you seem to take for granted that it wasn't this way as recently as 10 years ago and perhaps may not be this way in the future. There are always jackasses in government who in the name of protecting the public want to tax trading or limit who can do it. Sometimes they succeed; witness the PDT rule.
The fact that trading has so few barriers to entry is a great thing. The reason there are so many losers is because trading is very fair. The very few who can will take the lion's share of what's available from the many who can't. Mediocrity just won't cut it.
Quote from LeeD:
Actually, going in business for the money is the way to convince outside investors. They want to see someone with MBA and real management experience to take care of revenues meeting expenses.
Your missing the point. Becoming a Trader just for the money, is like getting married just for the sex. Trying to get rich by next week is not going to make you successfull.
Quote from guy990opl:
To Cheese,
Having limited capital certainly does not help the individual day trader after all he is going to be against pros with a lot of capital.
If the individual day trader has $1 and the pro got $5 and the bet is for 25 cents it takes only 4 bets/trades for the individual trader to blow up, but it takes 20 for the pro.
Who is showing ignorance, is probability something one should be aware of or it is no big deal ?
AND...most Day Traders tend to ignore the word: CONSISTENCY.
If one starts day trading and one gets a lucky week/month does that make him a good day trader ? After all his profitability was positive per DAY.
In addition to all of the above don't forget how it is much harder for day traders when it comes to psycology.
You and most people assume that I say what I said because I am a failed trader, no no no, I am a failed DAY trader, as a matter of fact I didn't even try to day trade. BUT...I have been trading full time for 5 years and AGAIN in 5 years I NEVER met a succesful day trader.
If you meet them and they are all around maybe I live in the wrong city.
Limited capital? everyone has limited capital. Moronic. Trading profitably is equity invariant, once you cover your business fees. If you have a little capital your risk and stops are less in dollar terms than if you have a few million equity.
Most good trader blow out at least a few accounts on their way to trading well. It's good they had little to start with each time.
This idea that you need a certain amount of money in trading to succeed is 95% bullshit. True, you can't trade at increments that don't cover costs, but other than that it's equity invariant, meaning especiallyn stocks, you can scale down your risk to accomodate a paltry starting equity.
If you are a beginner, you might eat that initial amount a few times and you should...you should lose a few small accounts as a tuition into this biz.
If you are beginner and you start with the whole farm, count on losing it.
Once you are good, you can start with any amount and eventually make a living on it..thats the definintion of skill in this business.
To those who think they need a certain amount of money in order to trade successfully, you might take the other approach...how much money do you need in order NOT to trade.
That's a direct statement from one of the most successful traders in the history of our country. Some of you who have studied this business will know who said that.
That's one truth about trading. Again, the amount you start with is irrelevant...its just one of those myths the brokerage firms want you to believe, and losing traders cite when they are too impatient to keep going and learn for a year or two or three more.
So...starting capital is pretty much irrelevant. Just trade a market where you can afford the risk unit. and in most equities markets you can make that risk unti very very small.
Quote from guy990opl:
To be a surgeon or a lawyer or a fighter pilot one must go trough many years of school and at the end one is given a Bachelor Degree. Go to any hospital you will meet a doctor, and in many offices you will meet a lawyer.
You kept missing the point. Your assertion was not logical.
Absence of proof is not proof of absence.
Or perhaps you didn't have any training in science or logic. You are like saying: I have never seen a pink dolphin. Therefore pink dolphins don't exist.
Using your own suggestion: you should be looking for successful day traders at a nearby Goldman Sachs office. It will be hard for you to find successful day trader in your immediately neighborhood or in a hospital or in a law firm.
( I am talking about retail traders, NEVER met one who can make money consistently )
Maybe it is my english let me rephrase it:
I never seen a pink dolphin so I believe that if one wants to see a pink dolphin it is going to be really hard.
Everyone would love to see a pink dolphin but for most people seeing a pink dophin is a nothing more than a dream.
Maybe it is my english let me rephrase it:
I never seen a pink dolphin so I believe that if one wants to see a pink dolphin it is going to be really hard.
Everyone would love to see a pink dolphin but for most people seeing a pink dophin is a nothing more than a dream.
Quote from LeeD:
After a few weeks in Thailand and many-many delicious Thai meals I have never met a Thai chef. Does this mean Thai chefs don't exist?
That about sums up the OPs reasoning. Sorry OP, maybe you wrote that to incite some movitation in yourself...I am sure all here at ET were just too happy to indulge you.