Gambler vs Trader

Quote from stock777:

the only reason you'd need 500k or more is if you are trading a tiny edge.

most here on et make 50-100% on their accounts per month, so 100k is enough
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According to your statement, assuming that their monthly returns averages to 75%, their $10,000 in initial capital would be worth a million in just eight months and seven days!


EDIT: My bad, read it wrong as I assumed the initial capital is $10,000. It gets worse- using the same 75% assumption, the 100,000 capital would be worth a million in four months and four days.
 
It's all explained here...

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retail trading and gambling are almost identical. What marks the difference is the luck factor which is unquestioned in gambling but denied or misinterpreted in trading.
Now if you just could admit that you are gambling when trading and apply the appropriate approach you would have much higher chances of winning simply because you would instinctively work out a very fine sense for risk and therewith easily recognize when and where to play.
 
Quote from emg:

you are right, majority of the hedge fund owners began to trade more than a million to make money trading. Those owners know that in order to be a successful traders, they need a million
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Is-ought fallacy in logic :(
 
If the DOW collapses 90% monday morning....will you be ok?

If the DOW rises 100% monday morning,will you hit the jackpot?


If your answer to both questions is not Yes you are gambling.

And thats ok.
 
Quote from emg:[/i


This thread will help to decide if newbies and amateur want to pursue trading.




A successful full time trader:

1) they have a capital to start trading a minimum $500K to make a comfortable living.

2) they do not subscribe 3rd party vendors and they do not google search for a holy grail system and spend thousands of dollar on useless 3rd party vendors books, softwares, and indicators.

In fact, most of the successful traders are former prop trader, bank trader, hedge fund trader, floor trader, or begin their career working in the trader desk for a bank, brokerage, mutual funds, hedge funds, prop firm, and HFT firms.

3) Most of them have a college degree and the most successful traders hold a Master and PhD degrees in engineer (Math, computer)

Those that graduate a PhD degree have a higher successful rate of getting hired as a trader in big banks (bank of america, chase, citi, etc) or big brokerages (goldman sach). Those brokerages/banks have a training program to help them succeed. When these guys succeed, they will know for the fact that a huge capital $500K minimum is needed to become a successful full time trader and play the game the RIGHT WAY. They are too intelligence not to overleverage, but trade consistently and constantly.


Gambler:

1) They are not organized. They have no clue what is risk/reward trading. They do not have experience trading. They want to start trading with less than $5000. They overleverage like a gambler.

For example, if they are profiting 3 days in a row, they will up it or put more money on the table.

2) They spend a lot of time google searching for a holy grail systems. They are willing to spend thousands of dollars on worthless 3rd party vendors books, softwares, indicators, boot camp, trading room, coaching 1 to 1. In other word, most 3rd party vendors are fail traders and the newbies/amateur are spending incredible money learning how to lose.

Losers learning losers on how to trade

3) They have no idea who are their competitors or have no idea how the game works.

4) There are many people who are still papertrading for 5 plus years. That person could have gone to a prestige college and take a degree on what the banks/brokerages/hedge funds are looking to hire instead of wasting their time papertrading.

5) More than 90% of small traders lose! They lose because they are a gambler. They just lose.
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Your post is PURE BS!!!
 
Quote from emg:


...
3) ... and the most successful traders hold a Master and PhD degrees in engineer (Math, computer)
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emg, is there any hard evidence of that that you know of? My gut feeling has always been just the opposite, i.e., that successful trading had little to do with whether one had an advanced degree, and such might even be a hindrance.
 
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