So everyone is going crazy because I said floor trader when I should have said black box, but before I also said ...
"The fact that I can not daytrade or don't know good daytraders does not mean that it can not be done. Agree on everything you write except the time frame. Daytrading is the hardest way to make money."
EPardo says that "trading is trading" and the time frame is irrilevant, yeah right ! Given that one has a plan and an edge personally I find much easier to target 1% - 2% every month. That is my goal when I sell options. It is very boring, but the stress level is also very low. And the money I make when I do, is limited.
In 2006 I made, 31%, luck. In 2007 I made 64% it was luck. Last year 34% still luck, so I am trying to take the luck part out and focus on a consistent, yet modest 1% - 2 % each month. This year, I am flat after six entire months, BUT my drawdown a few months back was no more than 6%. 2008 was a positive but my drawdown was 40%. Now there are less gains but less losses I like it much better that way. Once I figure out how not to lose much, I am confident that I will make it. As long as I have the capital/cash to buy another ticket does not matter how many trains I miss.
I learned that one could make a lot of money with fewer probabilities OR little money with higher probabilities, it is a give and take. Sure I could try to double my money, but the risk will be higher and even if I do it would be luck. I would highly doubt to be able to double money every year.
If I can make 15% -20% on a capitalized account, think six figures or more, I am happy. That's why I am not a daytrader. I don't have the stomach for it, and even if I did it would not be enough.
In my modest experience even the daytraders who made money for a few years ended up quitting, or stopped. Why ? Because it is harder than other trading approaches.
If all of you are successful daytraders it is impressive, but if that is the case all of you are the exception and not the rule. Sure there are 100 ways to make money in the market and even more ways to lose money, but where are all the successful daytraders everyone is talking about, just where are they ?
Yes, they must be out there but extremely FEW in number on ET there is Neke, not sure who else. You guys are certainly right on the fact that my limited experience in the market means nothing, but one thing I learned...
...the majority of daytraders and people who likes "action" are market losers !
Several books talk about daytrading and are pretty accurate on the facts:
1) you must act instantly if you take time to think you are dead
2) daytrading chews up a great deal of time
3) daytrading plays into people 's gambling tendencies
Basically it is a paradox because it demands the highest level of discipline, while attracting the most impulsive, addictive and gambling oriented personalities.
Now you can say all you like that trading is trading blah blah blah that there is an army of successful daytraders blah blah....the majority of retail daytraders are losing money. That's reality ! If you feel you can argue this go for it, you can have the last word. Just remember that the market will take care of everything and tell you if you are right...or wrong.
