Reverse Psychology/Trading

My personal conclusion.

The way it might work if applied to day trading say ES is let Trader A trade on a SIMULATOR and do whatever he thinks has to be done. A normal day trading case would incur small profits for Trader A, for Trader B that would result in small losses and followed by large losses for trader A, which for trader B would be the opposite again. The way to automate the process would be to program an API to place reverse orders at the time trader A opens/closes his orders.

The psychology of a new trader has to remain some what virgin, pure, innocent and naive. I think that's when this system, if you take let's say 5 people, might generate good average profits for trader B, perhaps paying a fixed salary to trader A with bonuses (for extremely large losses :)) Everyone happy! Compared to a regular prop shop there is less stress for either party, as risk is minimised. Trader A receives a salary/bonuses and hopefully learns how not to trade and trader B is generating profit and...well doing a lot less than he used to when decisions had to be made when/why/etc.
 
A better question:

How do you make a monkey into a human. If a monkey starts fading other monkeys or even so start imitating humans, they'll turn to be humans...

Monkeys are monkeys, no matter what.

*sigh*
 
Quote from TSGannGalt:

A better question:

How do you make a monkey into a human. If a monkey starts fading other monkeys or even so start imitating humans, they'll turn to be humans...

Monkeys are monkeys, no matter what.

*sigh*
More...

agreed, the whole concept is crap.
 
Just heard a story on some brokers, not going to say where. When a new trader (sometimes even an experienced one) places an order to buy/sell so many futures contracts in whatever, the broker just puts the futures on the one's account and never buys it in the market. Some brokers go to the extent of claiming that they consider all margins from new traders as 100% profit.
 
Quote from romik:

Sad but true.
Have you considered opening a Brokerage,
offering zero comms and taking the other side yourself with the right to cancel accounts at any time.

Just heard a story on some brokers, not going to say where. When a new trader (sometimes even an experienced one) places an order to buy/sell so many futures contracts in whatever, the broker just puts the futures on the one's account and never buys it in the market. Some brokers go to the extent of claiming that they consider all margins from new traders as 100% profit.
More...
 
i can't argue with that comment, though the theory is based on the realistic odds, which are against a new inexperienced trader, by his/hers inability of applying proper money management. Take any teenager, explain the basics of futures trading, give him $1000 to trade aggressively. And I guarantee you that the majority will run it into the ground quicker than you think. People are naturally driven by the idea of making a lot of money quickly, that's why casinos are such a great business, because the majority of participants are not controlling risk. In the early stages traders are unable to control risk. Try it with someone you know and come back to me with your results. I have tried it out with my wife, who knows absolutely nothing about TAs. The result was as anticipated.
 
That was my wife's trading record:

Her initial trading capital was $5000 (simulated account), she could trade from 1 to a maximum of 10 lots in ES using $500 margin.

1. 1 lot Long ES +1 point
2. 2 Lots Long ES +1.75 points
3. 1 Lot Long ES -2 points
4. 1 Lot Long ES -1.25 point
5. 4 Lots Short ES +3 points
6. 5 Lots Long ES -3 points
7. 5 Lots Long ES -4 points
8. 6 Lots Short ES -5 points
9. 4 Lots Long ES +1 point
10. 5 Lots Short ES -8 points virtual margin call, this was a classic, when she was 3 points down, her friend called :)

34 Lots traded commission $3.70 r/t=$125.80, that would have been charged to a real account.

Her capital after 10 trades was reduced down to $486.70, that is under 1/10 of her original amount.

When she has lost $4513.30 (not real money obviously) in just 3 days time, I would have made almost the same amount by opening opposite positions every time she opened hers.

Perhaps this experience turned out to be a little TOO perfect, as it has been suggested before in this thread, there is still risk involved as you will never know when that person's "LUCK" will change taking him the other way.

I have done a bit of research and this turned out to be a proven theory. Now whether you believe in it is another matter, like anything in life.
 
sentiment.jpg
 
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