Is a great trader just a trader who finds a great strategy?

[JimmyJam]

Quote from QuantPlus:

The beautiful thing about trading...
Is that one can chose the level of variance...
In contrast to poker...
Where high variance (luck factor) is insurmountable...
Except by pooling winnings with other top players.

In trading...
One can be successful with a high variance strategy...
Which may or may not produce higher long-term returns...

Great point ... if one can effectively identify strongly trending days one can make a substantial amount of money ... Anekdoten over on the AHG thread is doing it even as we speak.

OR

One can be successful...
With low variance, market neutral scalping strategy...
Which would show a profit perhaps 80% of trading days...
(Think market making firms like IB)...

I personally like this style of trading myself (but will take the trending days when they come). Developing a technique which consistently makes a short gain (not necessarily a small amount, though) is IMHO a prerequisite to transitioning from trading as an avocation to trading for a living.

And luck plays almost no role whatsoever in a time frame of several months or more.

I agree with you on that one also. This is B1S2's technique of choice over on the ES Thread, and I can only imagine the types of gains he makes on his positions.

But I meant luck as in ... looking around for trading information in general and happening on a GEM of a concept or technique that helps to transform your trading, or running into a someone who mentors you in their profitable system, or catching a major BULL or BEAR run using a technique which is designed to exploit that type of market, etc. you know, luck, random action, good karma.

The choice depends on your personality.

Couldn't agree with you more, I like the small, steady, consistent gains (time to make the donuts).

Allways good dialoguing with you guys.

Good trading,

JJ

 

[QuantPlus]

Quote from Tracy McGreedy:

Actually, college is bad for most people in trading as it mostly creates one of two types of people. First you have those who by brainwashing cement their beliefs and they become rigid to change. Second type is constantly searching for truth. The by-product which is second guessing, playing devils advocate, questioning, etc..

These are recipes for blowup in the markets.

College is good for esoteric task based salary jobs.

Ask any great trader, I don't think he learned anything about the markets in college.

Academics of the market never make money, they are either economists, or sell books/DVD's.

Very good. Outstanding.

The first category...
You are exactly correct.

Any program related to economics or business...
Or any courses related to the Securities Industry...
Serve only ONE purpose...
And that is to manufacture a COG in the MACHINE...
A reasonably smart, brain-washed DUPE in a suit...
That will help transfer wealth FROM the public TO the Securities Industry.

A genius level person could not possibly take this bullshit seriously.

The second type... "constantly searching for truth"...
I would CHANGE to "constantly applying critical analysis".

Geniuses do this constantly...
They ignore "conventional wisdom"...
And find both logical and counter-intuitive ways to make something work...
To trade successfully, for example.

This is not a "recipe for blowup"...
But rather the creative flexibility REQUIRED to avoid blowup...
To change course and dump suicidal positions.

If you go to any Commodities or Futures Pit...
It is filled with rebels and non-conformists...
People who CAN'T HELP BUT "think outside the box".

Guys like Jim Rogers... minus the bow tie...
Really well-rounded, interesting guys...
Literally from all walks of life.

And you are right...
These guys learned everything about trading from experience...
From making their first 100,000 trades.

And real traders won't teach you anything...
You are just throwing pearls to a herd of swine.

Over and out.