+2
This is the reason so many "educate" but not trade. They educate these "rules" and the gullible newbies hand over their money like that!
Exp traders ... 5 Fatal Flaws of trading
- Thread starter deadbroke
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+2
This is the reason so many "educate" but not trade. They educate these "rules" and the gullible newbies hand over their money like that!
Those commensense rules are NOT all there is to it.
Here's a football analogy...I remember the first time I played high school football as a wide receiver. My football coach said remember 3 things...run your route, catch the ball and run to the other goal line.
Of course that's not all there is to it to be a good wide reciever but the coach was trying to keep it simple and that's ok in the beginning or for any newbie wide receiver.
Therefore the main reason why there's a high failure rate amongst traders is a combination of a lot of reasons and each trader has more problems with a few in comparison to another trader that has failed.
* Bad Money Management
* Bad Discipline
* Poor Trade Method
* Poor Capitalization
* Inadequate Trade Workstation
* Inadequate Broker Platform for the trading style or method
* Poor Stress Management
* Poor mental and physical health
* Failure to treat trading like a business
* Poor Team Collaboration
* Lacking in Market Experience (understanding the markets) will prevent having the ability to adapt
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I can name a dozen more reasons but you get the point. Further, I've met a few guys with a good trade method fail miserably because they didn't have any of the above critical pieces.
Simply, everything works together and if something important is missing...there's no balance in the trading plan to be profitable. So yeah...there's A LOT MORE to it than what the author mentioned but he probably only mentioned the stuff that was important to him of stuff he had the most problems with and assumed others may have the same.
Sit down and make your own rules and not just the ones you're having problems with and then develop a written trading plan with all those "commonsense" rules...
Should take a few years to get everything working (balanced) into something successful even though most traders will go belly up prior to reaching that point of balance. That's the main reason why this isn't a long career for most traders because the FAIL at keeping all those pieces working together.
Mark
Quote from NihabaAshi:
Those commensense rules are NOT all there is to it.
Here's a football analogy...I remember the first time I played high school football as a wide receiver. My football coach said remember 3 things...run your route, catch the ball and run to the other goal line.
Of course that's not all there is to it to be a good wide reciever but the coach was trying to keep it simple and that's ok in the beginning or for any newbie wide receiver.
Therefore the main reason why there's a high failure rate amongst traders is a combination of a lot of reasons and each trader has more problems with a few in comparison to another trader that has failed.
* Bad Money Management
* Bad Discipline
* Poor Trade Method
* Poor Capitalization
* Inadequate Trade Workstation
* Inadequate Broker Platform for the trading style or method
* Poor Stress Management
* Poor mental and physical health
* Failure to treat trading like a business
* Poor Team Collaboration
* Lacking in Market Experience (understanding the markets) will prevent having the ability to adapt
-----------------
I can name a dozen more reasons but you get the point. Further, I've met a few guys with a good trade method fail miserably because they didn't have any of the above critical pieces.
Simply, everything works together and if something important is missing...there's no balance in the trading plan to be profitable. So yeah...there's A LOT MORE to it than what the author mentioned but he probably only mentioned the stuff that was important to him of stuff he had the most problems with and assumed others may have the same.
Sit down and make your own rules and not just the ones you're having problems with and then develop a written trading plan with all those "commonsense" rules...
Should take a few years to get everything working (balanced) into something successful even though most traders will go belly up prior to reaching that point of balance. That's the main reason why this isn't a long career for most traders because the FAIL at keeping all those pieces working together.
Mark
Thanks. I think this pulls things together nicely!
If you look at ES trades of 10 contracts or more per transaction, it represents about 75% of all volume.
If you look at ES trades of 100 contracts or more per transaction, it represents about 40% of all volume. (Even though it's only about 2% of total trades, it accounts for a huge chunk of the volume.)
Conversely, single lot transactions represent 3% of the total daily ES volume, and trades of 5 contracts or less represent less than 10% percent of all volume.
If you put these facts together, that makes it virtually impossible for the retail trader NOT be trading against a professional most of the time when trading the ES.
According to the person I spoke to at the CME, the vast majority of ES trading volume is professionals trading against other professionals.
In that case, does it mean that every time you trade ES, you are highly likely betting against the professional and that there is no way you can tell in the ES arena?
Just considering that 75% of the volume comes from 10-lots or higher, that makes it highly likely that there's a professional on at least one side of any given trade, and perhaps both sides. [Note: My data is several years old, but I trade this market every day and there's no doubt in my mind that professionals move these markets, not the retail traders.]
I watch volume run-ups at key times, and clearly that has to be an influx of professionals because they're the only ones who can drive the market in a major way. So, I guess the answer to your question is yes; by watching volume you can get a feel for the level of professional activity. But you also have to keep in mind that the pros are very good at disguising orders, breaking them up and feeding them in smaller chunks, etc. Watching the volume data is not a perfect solution, but there's good information to be found on the charts if you know what you're looking for. You still can't get around the fact that most of the volume comes from big players.
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