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Did Altucher fail as a trader?
- Thread starter Gueco
- Start date
Quote from Jreality:
Call me crazy, but I think Vishnu (J.A.) is onto something. Day trading for a living will eventually result in failure and burnout, and it doesn't produce anything valuable to society. It is likely only a matter of time before a day trader ultimately fails over the long haul. Is it possible that there is an exception out there (1 out of 1000 people)? I suppose, but most everyone will fail. Even the great Rob Hoffman blew up his account. (300K+ Lesson Learned!....poof!)
I know it's true that most businesses fail, but I think it could be even worse for daytrading.
The vast majority of the posers on this thread have a net worth below 100K. They don't have enough liquidity to take advantage of any market inefficiences they may find. They have no clue what Mr. Altucher is stating, ie for the little guy, day trading is a waste of their most precious commodity, their time . In the past, when exchanges were being automated, anyone with average IQ could become a SOES bandit by trading against the NYSE market maker, these days those guys are broke and gone. Then you had guys front running the market using info from the dark pools, those guys are now resorting to rebate trading to stay in the game. Today, success in day trading can not be attained by watching level 2 or some BS indicator on a chart, and sucess is daytrading is path dependent, and most on this thread are wandering in the dark, if and when they do see the light, they're going to be financially broke with no job skills to fall back on. Mr. Altucher is doing these guys a kind favor by informing them of the reasons why they're all destined to fail. If you do not have genius level IQ that can grasp advanced mathematical concepts and advanced programming skills, you're going to be road kill. And anyone who does have that IQ, can make his millions elesewhere while learning how to invest or swing trade, where the sucess rate is higher.
Here's a post by Tim Sykes that tries to refute JA's "8 Reason's Not to Daytrade.
http://www.timothysykes.com/2010/11/how-the-rewards-of-day-trading-outweigh-the-risks-3-to-1/
Here's the 8 reason's not to daytrade:
http://www.jamesaltucher.com/2010/11/8-reasons-not-to-daytrade/
I tend to agree with not daytrading.
http://www.timothysykes.com/2010/11/how-the-rewards-of-day-trading-outweigh-the-risks-3-to-1/
Here's the 8 reason's not to daytrade:
http://www.jamesaltucher.com/2010/11/8-reasons-not-to-daytrade/
I tend to agree with not daytrading.
Altucher is essentially correct although he is a little too absolutist in his statements.
Of course I think some of the hyperbole he has used, is to generate controversy and shock modern day believers in market superstitions.
The bottom line is most speculators lose, whilst a much smaller group win big.
They both provide an extremely important service of price discovery, liquidity and elimination of exploitable anomalies of market efficiency.
speculators are needed especially newbies
Of course I think some of the hyperbole he has used, is to generate controversy and shock modern day believers in market superstitions.
The bottom line is most speculators lose, whilst a much smaller group win big.
They both provide an extremely important service of price discovery, liquidity and elimination of exploitable anomalies of market efficiency.
speculators are needed especially newbies
case in point, who would invest, follow a strategy or fund named after the most destructive blow up in the universe.
Perhaps they are concerned about truth in advertising, :eek:
http://www.fool.com/fool/free-report/1502/supernova-day7-01-180087.aspx?source=isnxsleml0000130
Perhaps they are concerned about truth in advertising, :eek:
http://www.fool.com/fool/free-report/1502/supernova-day7-01-180087.aspx?source=isnxsleml0000130
Quote from PHOENIX TRADING:
Altucher is essentially correct although he is a little too absolutist in his statements.
Of course I think some of the hyperbole he has used, is to generate controversy and shock modern day believers in market superstitions.
The bottom line is most speculators lose, whilst a much smaller group win big.
They both provide an extremely important service of price discovery, liquidity and elimination of exploitable anomalies of market efficiency.
speculators are needed especially newbies
Indeed, daytraders provide the extremely important service of being the other side of the trade, just like how in poker the new poker player provides the extremely important service of being the other side of the table. Just like in poker, daytrading is a zero sum game where we need losers so there can be winners.
Quote from badvestor:
If you do not have genius level IQ that can grasp advanced mathematical concepts and advanced programming skills, you're going to be road kill.
Bullshit.
Just the usual message-board drivel from guys who are myopic over "trading" being synonymous with "stocks" and no other financial markets even exist.
Stock market trading for individuals may very well die a withering death. But any skilled trader in firm control of his emotions can follow some simple price action rules that have worked forever in markets that still (and always will) have a pulse like currencies or crude oil.
For anyone who really knows what they are doing, short-term CL trading is much like stealing from the comfort of you own home, only easier.
For the gamers, gamblers, lazy losers, ES addicts and stock myopics who think they have all the answers when in reality they don't even know the right questions, yup... they are likely road-kill waiting to be flattened.
Quote from austinp:
Bullshit.
Just the usual message-board drivel from guys who are myopic over "trading" being synonymous with "stocks" and no other financial markets even exist.
Stock market trading for individuals may very well die a withering death. But any skilled trader in firm control of his emotions can follow some simple price action rules that have worked forever in markets that still (and always will) have a pulse like currencies or crude oil.
For anyone who really knows what they are doing, short-term CL trading is much like stealing from the comfort of you own home, only easier.
For the gamers, gamblers, lazy losers, ES addicts and stock myopics who think they have all the answers when in reality they don't even know the right questions, yup... they are likely road-kill waiting to be flattened.
It really is true without mathematical prowess, statistical modelling, and programming skills there's not much chance of success if you cannot program a computer to trade for you.
Quote from bwolinsky:
It really is true without mathematical prowess, statistical modelling, and programming skills there's not much chance of success if you cannot program a computer to trade for you.
With all due respect, you've been in this site half the time as me with twice as many posts and rising. I spent my time invested in discretional trading instead of posting about hypotheticals and systems and revamped systems.
If you know where to find me, you can see where I walk the talk about short-term CL trading, FX trading.
The only thing I want my computer to program for me is automated updates from the NFL on ESPN.
I suppose I disagree due to my bias of only being able to use 7th grade math.Quote from bwolinsky:
It really is true without mathematical prowess, statistical modelling, and programming skills there's not much chance of success if you cannot program a computer to trade for you.
I consider myself to be more of a speculative investor than a trader.
Perhaps that's because I think traders believe in a lot of market hocus pocus superstitions and brazenly call it "technical analysis".
kinda reminds me of the Orwellian labeled " Bank Secrecy Act " which is exactly the opposite of the laws intent.
http://en.wikipedia.org/wiki/Bank_Secrecy_Act