Day Trading Stats

Q

quicktrader12

Interesting article on day trading statistics.

http://www.traderbulletin.com/stories/storyReader$636

I am surprised that there are still 30,000 semi pro traders.

I totally agree with this statement from the article:

"According to the report, advanced analytics and auto-execution functionality are major hot spots. Mr. Goldberg expects trading technology to evolve rapidly as semi-pros seek ways to “enhance their returns.” Real-time stock filtering, back-testing, program basket trading, complex analytics, and algorithmic functionality are examples of such technology."
 
According to the article we've lost 20,000 traders from the ranks. That's 40%. The market has also lost about 40%. (at least)

When the market begins climb those traders will be back.
 
I've never quite understood that. There are so many different trading vehicles today and so many different ways to trade them. If someone is truly committed to being a trader it has nothing to do with the current conditions of the stock market.
 
If someone is truly committed to being a trader it has nothing to do with the current conditions of the stock market.
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Its hard for someone to be committed after they've lost all of their money. Beside when novice traders lose their money, it finds its way into the more experienced traders pockets.

We just have to wait for more newbies to come along.
 
Quote from spreadem:

According to the article we've lost 20,000 traders from the ranks. That's 40%. The market has also lost about 40%. (at least)

When the market begins climb those traders will be back.
More...


25% of traders packed up in 2002, but 40% since have gone kaput since 2000.
 
Quote from SimpleSimon:

If someone is truly committed to being a trader it has nothing to do with the current conditions of the stock market.
More...
I've never quite understood what someone means when they say "truly committed". Of course it's a nice theoretical conversation point, and a question people just love to ask others (and occasionally themselves). But let's look at a sports analogy, say basketball. There are thousands and thousands of VERY good basketball players at the local neighborhood courts, the high school gyms, and the college teams who, if asked, would answer that they're "truly committed". Maybe you would dismiss their avowed committment and solely judge by the results? Anyway, the reality is that NBA teams only have 12 each on their roster. Sure, we hear all the time about the Michael Jordans, the Kobe Bryants, the Shaqs, in other words the people who made it and made it big time. But there are thousands of stories we never hear about the thousands who never made it to the pros, or made it and soon flopped out. The truth is some people, make that most people, simply do not have the talent, do not have what it takes. And it doesn't matter in the least if they're "truly committed".
 
I remember discussing this topic in college in a psychology class. Is the STAR athlete born, or does the environment (learn) create the STAR athlete? I would think it is a combination of both with different degrees per different individuals.

STAR athletes are born to be STARS much like the successful trader. The athlete is born with physical and mental requirements much like the trader.

But, environment of the STAR athlete and trader IS just as important for success.

YOU HAVE TO WANT IT (committed trader) AND you have to be born IT..... A TRADER. To me, it is the same coin but with 2 sides, or parts. Each part is just as important as the other.
 
Quote from Magna:

I've never quite understood what someone means when they say "truly committed". Of course it's a nice theoretical conversation point, and a question people just love to ask others (and occasionally themselves). But let's look at a sports analogy, say basketball. There are thousands and thousands of VERY good basketball players at the local neighborhood courts, the high school gyms, and the college teams who, if asked, would answer that they're "truly committed". Maybe you would dismiss their avowed committment and solely judge by the results? Anyway, the reality is that NBA teams only have 12 each on their roster. Sure, we hear all the time about the Michael Jordans, the Kobe Bryants, the Shaqs, in other words the people who made it and made it big time. But there are thousands of stories we never hear about the thousands who never made it to the pros, or made it and soon flopped out. The truth is some people, make that most people, simply do not have the talent, do not have what it takes. And it doesn't matter in the least if they're "truly committed".
More...

Someone who is truly committed is willing to change even if it doesn't make sense, to improve. I have plenty of traders who say they work hard and committied to becoming great traders, yet they refuse to become more disciplined, and constantly give you excuses why they don't. Now in this person head they think they are committed 200%, but in reality to the good trader, they can see that unless the person gets his head out of his a**, and becomes more disciplined on the entries and exits, they'll never make it. NO MATTER HOW MUCH WORK THEY PUT IN!!
 
This brings up an interesting point, one that I have thought about numerous times especially given that I work with a number of people on a daily basis. The first point I would make is that I do think that nearly anyone can learn to trade profitably. That might mean making $1 a year though, which obviously won't be worth it. I think that trading is something akin to playing the guitar. My uncle has been determined to make it as a rock and roll star since he was 12 years old. He is now 45 and still trying. He practices the guitar all the time, he is always jamming with his buddies and writting songs and any number of things. Yet no major record label has ever picked him up. He has remained a local attraction, not much more. He probably makes about $15,000 a year, which if anyone is familiar with Northwest Iowa knows is enough to live off there - but not exactly what rock and roll legends are made of either. So I think trading is a lot like that. Anyone with real dedication will make it on some level, but it might be more akin to my uncle Lyle. And there are thousands of people out there who are like my uncle, but there has only been one Jimmy Hendrix, Slash, Eric Clapton etc. Those that truely excel have something "special".

Brandon
 
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