No one on EliteTrader will beat the market⦠here is why
- Thread starter neutrino
- Start date
I believe it's possible to beat the market, especially intraday when you're not nearly as likely to be killed by a gap (yes, there's the occasional trading halt, but that's quite rare unless you're a particular trader I know
).When I follow my rules and my plans I make one profitable trade after another, with an occasional loss. You can look at my journal and see that. When I don't strictly follow my rules and plans, surprise, they are losers!
Now tell me: What does following or not following MY rules and plans have to do with the market or the level of competition therein?
neutrino:
Markets are indeed efficient (although I do not like the word "efficient"). The return is less than the normal returns because the industry (brokers, etc) that does not take risk has to be paid.
You have to understand that your gain in trading is another man's pain.
To make it you will need to be in the top small percentage (say 20%). How to do it: that is your problem to solve.
Is there is a small consistently profitable group? Answer is yes . Proof is: A large number of people lose. Where does that money go? it cannot disappear. The money goes to that small percentage of people who know how to get it.
You are right in your assessment, but not your conclusion. The way you will use to make your money is the reason why you will say I earn money, rather than it was given to me. It is not easy to make money in market. That is why there is only a small percentage who makes it.
Markets are indeed efficient (although I do not like the word "efficient"). The return is less than the normal returns because the industry (brokers, etc) that does not take risk has to be paid.
You have to understand that your gain in trading is another man's pain.
To make it you will need to be in the top small percentage (say 20%). How to do it: that is your problem to solve.
Is there is a small consistently profitable group? Answer is yes . Proof is: A large number of people lose. Where does that money go? it cannot disappear. The money goes to that small percentage of people who know how to get it.
You are right in your assessment, but not your conclusion. The way you will use to make your money is the reason why you will say I earn money, rather than it was given to me. It is not easy to make money in market. That is why there is only a small percentage who makes it.
Getting it is not nearly as important as keeping it is. I have a young friend (23 year old)who started trading about 9 months ago and had taken $10,000 up to $110,000. In the last two days he lost it all. He had just quit his job about 4 weeks ago because he could tell he was "born to trade", he could just feel it and the results he was getting obviously showed that to be true. Ego and poor risk managment is a killer. The sad thing is that his is not really a unique story, it happens to varying degree's every single day, and it happens to guys who've been around for 20/30 years too. You never "have it" in the market. You always have to be learning and open to new info or your days are number IMO.