Thanks Mark,
I should have been clearer in my question.
I was thinking specifically about these sorts of comments they made:
1/ "Most of the 10% winners is due to luck in a snapshot, on a rolling basis nearly everyone is losing on shot time frames. The market moves to liquidate you, it really is as simple as that."
2/ "Then you have the burnout factor of intraday scalping day in day out for years. I haven't seen anyone last 10 years."
3/ "Once you have a 250k+ account the pressure is completely off, it's a complete mindset shift. An experienced trader will comfortably make 50k a year from a 250k account without over leveraging."
4/ "leveraging up a small account intraday waiting for the price to line up with a line/indicator <insert guru tag> is a negative sum game."
In respect of 3/ this is only a 20% TAXABLE return. Putting the $250k into a basket of shares tracking the index probably would earn 7-9% pa and in NZ (where I live) that would be tax free. I am aware of guys trading futures where those $ would be reversed ie they make $200k+ a year on an account size of closer to $50k.
And in relation to 4/ your algos use indicators which this poster suggests is a negative sum game (depending on how you define a small account)
Any and all comments are appreciated.
1. i would just say that's a broker (failed at that style of trading) talking, they see a lot of defeat and have given up themselves. don't know about the percentage but agree about the luck snapshot, i was a luck snapshot. then i found a mentor who brought me in.
2. hung around the cme floor often and seen a fair share of sad stories of failed floor traders (scalpers) who just could not get the hang of taking a loss and moving on. in the outside world i know of very few day traders or now with 24hr markets very short term traders who can stay with it. it's rare but attainable, i burned out several times.
3. just look at the money managers who are negative or make very little money at all in the business and they have billions. they should own the world based on that statement. what i know for a fact is a trader you guys here will survive if you can take the least account size and grow it from a 1-2 lot up to about 7 or more lots based on a delta that you choose.
Quote from
Stan Finney "when you have no money you trade scared but swing for the fences, when you have big money all you worry about is losing it so you reside yourself to tapping out singles". <all baseball terms he loved baseball
4. momentum is not limited to cars, trains, falling objects, political races etc. so then why would momentum be vacant from the financial markets? so if we can see or mathematically detect in the case of indicators an object has momentum why would we not have confidence it will continue rather than stop and reverse. even if you price action trade a "simple me" you are in your mind taking note and sampling momentum of the price.
In respect of 3/ taxes be dammed and investments in stocks also. to keep up with prices in the real world you need to make serious money and if you can't do it today with the luxuries of trading tools at your fingertips just wow. it's hard work yea but it can be done you have to establish some bench marks, some absolutes that you know for a fact and build from there.
any budding trader should ask themselves this, do you have a notebook with any absolutes written down, like the market does this and i can depend that when it does this it will react this way or that?
i agree with something i think i saw in that thread is trade with no emotions at all you have to get to that point if you're going to endure and the best way to do that is start small with micro's and get use to losing and winning. only after you have experience and lot's of it can you move on and make money.
m
