hmm.no edges in the markets
- Thread starter chimera
- Start date
90% of all retail traders lose, they just lose!
Just kidding. I have been on the prop side and on the retail side. Every prop firm I have ever been in rakes in serious cash. Every retail trader I know with a very very few exceptions struggle. If you saw what it takes to succeed, you would quit right now. This game takes money to make money. Then you need brains. Then you need to work your ass off. Then you need technical know-how. Then you need relationships. Then you need to get around silly rules, then you need to do decent volume to get good comissions,. then...It is possible to do this at home in your pajamas if you already have money, but the farther you are from being able to make markets or engage in [statistical] arbitrage, the more risk you have to take with larger sums of money. Read that last sentence 30 times. Read it again. Here is it: but the farther you are from being able to make markets or engage in [statistical] arbitrage, the more risk you have to take with larger sums of money. There is a way around it. Get a job so that you can have systems that only trade with patience, slowly putting away money to fuel a positive edge system. Otherwise, if you are not MMing or Arbitraging, the more pressure you are under to generate streams of income, the faster your money goes out the door.
One day, I am going to write a book and get it off my chest. it will be the only book in the history of books on markets of its kind. I will write it under a pseudonum. Wait, if I use my real name, no one will know it's me
"EDGE" is different for everyone and it changes with the amount of education of learning Price Patterns. When you have little experience in trading or investing, it will be years before you can even identify "edge", but as your experience increases and hopefully profits, your "edge" definition becomes more straightforward. I know when I was much younger I thought edge was having the best entry signal and making the biggest profits, but now three plus decades later "edge" has radically changed to identifying "time" and exit patterns in day trading and how to reduce losing trades by having filters of not taking certain signals.
I think most of the older traders would agree that by getting rid on ave 1.5 losing trades everyday is the difference of having positive day.
Long term trading is where the big money is at, sitting on your hands and taking min of trades, using weekly charts, trading stocks that pay dividends, not being short when stock goes ex-dividend, selling puts when long, all the little things gained by experience can add to positive percentages and beat the S&P500 index. And when you get your long term trading down pat, then backtest on swing trading for few years, then day trading. There is speed that must be gained when going to day trading, you have to learn rules of exit like breathing, you have to be able to identify several "patterns" and know instantly what you need to do, one of the biggest reasons people fail at day trading, not knowing what to do instantly.
Enclosed chart is slow moving GE, these are some of the extries I have used trading approx. same method since early 80's, except for bottom indicator, back then I made charts by hand and didn't get a PC till 1986. Through the years I have added counter-trend signals based on failures of price, but some trend based on trendlines as well. So even a slow moving market, that produces dividends can offer very consistent profits. I have automated this system to trade the Dow 30 like 20 years ago, back then would give printouts. This can be a starting point for those who are searching for an "edge", and concentrate your time on exits.
Quote from nitro:
90% of all retail traders lose, they just lose!
Just kidding. I have been on the prop side and on the retail side. Every prop firm I have ever been in rakes in serious cash. Every retail trader I know with a very very few exceptions struggle. If you saw what it takes to succeed, you would quit right now. This game takes money to make money. Then you need brains. Then you need to work your ass off. Then you need technical know-how. Then you need relationships. Then you need to get around silly rules, then you need to do decent volume to get good comissions,. then...It is possible to do this at home in your pajamas if you already have money, but the farther you are from being able to make markets or engage in [statistical] arbitrage, the more risk you have to take with larger sums of money. Read that last sentence 30 times. Read it again. Here is it: but the farther you are from being able to make markets or engage in [statistical] arbitrage, the more risk you have to take with larger sums of money. There is a way around it. Get a job so that you can have systems that only trade with patience, slowly putting away money to fuel a positive edge system. Otherwise, if you are not MMing or Arbitraging, the more pressure you are under to generate streams of income, the faster your money goes out the door.
One day, I am going to write a book and get it off my chest. it will be the only book in the history of books on markets of its kind. I will write it under a pseudonum. Wait, if I use my real name, no one will know it's me
Make certain I am on the short list for book--- don't hesitate Nitro-- DO IT!!!!!
Ps. If you need an intro to an agent or publisher don't hesitate to ask.
I am buying your book. !!
