Reality for an Individual Trader

marketsurfer said:
Wrong. Try research and the most critical thing in all of finance-- information.

The market is so asymetrically slanted toward the pros, only good advertising and intermittent win psychological trap keep the day traders coming back for more.

sorry, but seeing reality is the first step to success.

surf
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Yeah that's not correct mate... research anyone can do, so that's not perse in favor of pros. And information... are you talking about the bit of info that not everyone knows... that would be insider trading. And not all pros have insider trading knowledge... so that's not correct either.

And anyone can call up an IR-team to chat about things... just don't act like you're a 20 year old who hasn't got his own shit together...

Indeed what @sle says, technology is also an advantage for pros, but with that it depends on what kind of trading you do. HFT is definitely favored by technology expenditures, but less so for research based trading where millisecs are less important.
 
drader77 said:
but I question whether it is realistic for an individual investor to compete with pro traders
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If you can read the trend, you can not only compete with the best, but can be one of those who made it!! It does take study and work though to get there. And don't fear being taken by the so called pros. They are often just as confused and as wrong as the next guy.
 
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drader77, welcome to ET. Nevermind marketsurfer, he is a silly sort. Listen to the others here, and do not be dissuaded!

Especially listen to that Morse guy. I mean, look at that hairline!
 
I know a dude that trades long/short from home. His entire book is composed on the stuff that no institution would touch (you know, "shit names" with 20mm in market cap). He is able to get the type of information and mis-pricing that disappeared from the pro environment some 15 years ago - stuff like warrants trading under intrinsic, distressed convertibles that price in a true arb etc. You just need to know how to take advantage of that stuff.
 
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I'm really encouraged by the replies to this thread. Thank you! Do any of you have recommendations for what should be the top priorities for "due diligence." I have a background in math so I'm not scared of diving into that area of the self-education pool. I just want to be practical in whatever I do and not get bogged down in the weeds of complexity for complexity sake.
 
drader77 said:
I'm really encouraged by the replies to this thread. Thank you! Do any of you have recommendations for what should be the top priorities for "due diligence."
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Find a platform that you are comfortable with in trading the products you wish to trade. Do some sim. Make believe your sim account is your live account. And by that I mean, whatever you have in your pocket to trade with real money, model your sim account with that amount. Try it for a time. See how you feel.
 
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Trade small, trade small, trade small...for a long time. I've said this so many times to help noobies save a lot of money! You will go through a learning curve and many market condition changes...lose the least amount of money you can until you get this down. If you need to make a good income from trading now, this will screw you up more than anything by causing self destructive behavior...gambling mentality and revenge trading. I've been trading over 20+ years and make my income off of treasuries, gold, and natural gas (a little ES too). I lost +140k my first few years! Don't be the old me! Good Luck!!!!:)
 
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