"Real Winners Are Equity Traders"

Is Equities Where The Real Money Is

  • Yes

    Votes: 14 56.0%

  • No

    Votes: 11 44.0%
  • Total voters
    25
SwingToWin said:
Why are there any hedge funds? Any investment corporations? Because you can leverage your knowledge by trading OPM.
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Exactly and anyone taking the ridiculously serious approach required to go from retail trader to hedgefund trader or PM is unlikely to be found on sites such as "zulutrading". As I say if one is consistently profitable why waste your time on such sites? Become wealthy through your own means creating a long term track record in the process, show its scalable then approach the funds. Creating the "winning" system to sell is an easy dream that attracts many to sites like that which is why I do not buy into their statistics.

Oh... no. Stocks and FX are different assets with different behaviours. I doubt you can use the same strategy for both classes without a lot of adaption. Besides, have you ever seen anybody scalping stocks or FX and making money at the end of the month? I haven't.
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I don't quite understand your point, obviously they are different asset classes with different behaviors, if you have the intelligence and means to create systems to scalp or swing trade in one you will have the means to do so in the other, what I said had nothing to do with applying the exact same system to both, as I said its good to become proficient in trading as many asset classes as you can.....its not a complex idea....
 
in my humble opinion, based on years of not just trading but also watching other traders and comparing thousands of their systems/strategies on sites like zulutrading and c2, it is

sheda said:
if you have the intelligence and means to create systems to scalp or swing trade in one you will have the means to do so in the other
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a) impossible to create a consistently profitable system (system = "mechanical")
because all mechanical systems, especially the automated ones will eventually fail

b) impossible to scalp stocks and forex successfully


sheda said:
obviously they are different asset classes with different behaviors, , what I said had nothing to do with applying the exact same system to both, as I said its good to become proficient in trading as many asset classes as you can.....its not a complex idea....
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c) if you are a discretionary trader - and that's the only thing that works - it is very hard to adapt to different asset classes.
1. you cannot constantly watch hundred of charts without getting lost
2. by it's very nature, EUR/USD just behaves totally different than the VIX future.
unless you're superman, it's pretty difficult to emotionally switch the underlying asset classes and always use different strategies for all the assets. maybe you can do, I can not.
 
Fundlord said:
I met an old family friend today who works at an investment fund which also runs an "execution only" service for the clients.

I told him that I traded FX and futures and he flat out told me that its a suckers game and that I should count my blessings that I made any money in it.

He informed me that individual equities are where real winners are due to the risk reward ratio some trades have. The nature that some stocks can double/triple in a year or go up 20% in one day on some news.

Working 40 years in the financial industry he's seen many guys get wealthy during large runs in individual stocks but never a guy who has taken a position in futures/FX and rode it to the top.

This had me thinking about when I traded equities. I took really obvious positions and would make money on them. Such as buying AMZN and AAPl in pre market before they announced their new phones and cashing out by the end of the day.

Trying the same in FX would get you killed if the info is already priced in.

Off the top of my head I know Icahn, Ackman, Cohen, Einhorn and Loeb are all equity based hedge funds all with great track records. Food for thought I guess.
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What happens a lot is when people don't understand a trading product or have not done well they blame it on the "riskiness" of the product. All down side or upside exposure can be limited though limit or closing trades as well a spreads. I think people are substiuting the word risk when they should be blaming a foolish investor for executing a trade with a low probability of profit. Risk and reward will always be correlated.

I think the days of buying and holding aren't over but very limited. Many companies go to 0 or the stock prices get driven to historically low levels and never produce any significant long term gains.
 
FX wiped me clean...made me poor.. but ever since i move to trading stocks..my trading life got better... loving each day the market opens..

Most millionaire traders made money in equities ....not heard or seen FX success stories.
 
Fundlord said:
He informed me that individual equities are where real winners are due to the risk reward ratio some trades have. The nature that some stocks can double/triple in a year or go up 20% in one day on some news.
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Theoretically equity investing is like real estate and bond although future/option/FX is zero-sum.
The former reward the economic growth and inflation. But the latter is like lotto and casino poker and no inflation at all.

However, I do NOT buy "some stocks can double/triple in a year or go up 20% in one day on some news." at all. He should lose a big money by holding some other stocks.

In the long run, annually 20% might be the best for the last 400 years in the world. That is almost same as Buffet's record for the 45 years, if he is not a liar. 20% for 45 years shall give you 4000 times than original seed.

Never say "double/triple in a year or go up 20% in one day" from now at all. It is like "Put all your asset 200K in one bet in Blackjack, you can double to 400K in 10 seconds"
 
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