The Path to Heaven or Hell

emg · Mar 22, 2012

Why do Small Traders lose?

1) Under Capitalized
2) Lower Educated

result to: looking for a vendors/lower bracket prop firms that offer no barrier to entry, whereas, everybody can get in.

Vendors and some lower bracket prop firms welcome small traders because they are easy to duped All the vendors have to do is sell small traders the dream/myth:

How would you like to own a:

Ferrari

yacht

House

private jet

1947 ChÃ¢teau Cheval Blanc

Here are some example on how vendors get u to subscribe their products:

Small Traders will take the baits above.

More than 90% of small traders lose! They just lose!!!

DHOHHI · Mar 22, 2012

Quote from emg:

Why do Small Traders lose?

1) Under Capitalized
2) Lower Educated

result to: looking for a vendors/lower bracket prop firms that offer no barrier to entry, whereas, everybody can get in.

Vendors and some lower bracket prop firms welcome small traders because they are easy to duped All the vendors have to do is sell small traders the dream/myth:

How would you like to own a:

Ferrari

yacht

House

private jet

1947 ChÃ¢teau Cheval Blanc

Here are some example on how vendors get u to subscribe their products:

Small Traders will take the baits above.

More than 90% of small traders lose! They just lose!!!

So do you think that a Ferrari or a yacht make a person happy?

I'm a "small" trader and have been at it almost 16 years. I do fairly well. Rather than buying "stuff" I cut back my trading hours and volunteer in high poverty schools 2-3 days/week teaching kids math and explaining why education is important in their life. I could easily make more $$$ trading more hours per week but having a bunch of materialistic stuff doesn't make me a happy person. The satisfaction I get from kids appreciating what I do for them is something you can't put a price tag on.

emg · Mar 22, 2012

Quote from DHOHHI:

So do you think that a Ferrari or a yacht make a person happy?

.

the question will be, why do small traders want to trade?

for the next 2-3 weeks, this thread will be focusing on:

The mind of a SMALL TRADER

DHOHHI · Mar 22, 2012

Quote from emg:

the question will be, why do small traders want to trade?

for the next 2-3 weeks, this thread will be focusing on:

The mind of a SMALL TRADER

Why did I want to trade?

Background in math/Stats and I was tired of corporate BS, politics, etc.

Projected I could make as much trading as I needed to make to maintain my lifestyle. That said, I traded part time for a year (mainly position trading) to think it was feasible and then took a 6 month leave from my corporate job where I traded full time. Severed ties with corporation when my leave was up.

Have had ups and downs; great years and mediocre years but over time one becomes more consistent and able to gauge what the market is giving you as far as timing for profit taking.

And the freedom you have - basically as a small entrepreneur - is great. And no one to blame but yourself for losses.

emg · Mar 23, 2012

Here is an interesting post i would like to share from another thread before moving on:

Quote from steve.k.tang:

For the people who want a serious trading job here's my advice. You need solid programming skills, preferrably in C, Python or VB and strong excel skills. A passion for trading and programming skills will get u a job as a developer on the trading desk. This will help open your mind to trading ideas as well as properly test your strategies. Its hard to backtest using daily data when you want to trade intraday. Are trades stopped out before they become profitable? So do I have to trade intraday? You'll notice that many smaller firms don't have the risk limits to allow you to hold overnight. Hope that helps

http://www.elitetrader.com/vb/showthread.php?threadid=238230

emg · Mar 27, 2012

Here is the Risk Pyramid chart from New York State Attorney General
Eric T. Schneiderman

http://www.oag.state.ny.us/investor-protection/balancing-risk-and-return-to-meet-your-goals

Penny stocks and Commodity/futures market sit at the top of the pyramid, the riskiest markets. According to attorney General Schneiderman:

"At the very top of the pyramid go the investments that few people should try, such as penny or microcap stocks, commodity futures contracts and most limited partnerships. Most of these lend themselves to manipulation and fraud."

The question to u SMALL TRADERS why are u trading little capital in the highest risk markets?

Remember small traders, trading in the futures market is a ZERO SUM GAME. u lose because u were manipulated by 3rd party educational vendors/signal provider. Even worse, u are trading in a highest risk markets with little risk capital (under capitalized) and lower educated.

emg · Apr 11, 2012

Here is an interesting video:

<iframe width="560" height="315" src="http://www.youtube.com/embed/F-VdU_kwDoA" frameborder="0" allowfullscreen></iframe>

Sky recently joined RBS Morgans as an investment adviser and principal. Before making this move Sky was an Associate Adviser at Goldman Sachs JBWere.
Sky holds a Bachelor of International Business (Major in Economics) from Griffith University. Whilst studying Sky participated in the Goldman Sachs JBWere / Griffith Internship Program, which landed her the job and she went on to run the Program!
Prior to undertaking her International Business studies, Sky lived in London where she worked on the Institutional Trading Desk at the Japanese investment bank, Nomura Holdings Inc.
As an alumnus of the University, Sky is actively involved in our Alumni Network as a member on the Alumni Advisory Group. Find out where a Griffith degree can take you, visit Griffith.edu.au

Higher Education!!

emg · May 4, 2012

Here is chart on what all small traders are doing.

small traders will repeat this cycle for the next 20 years.

More than 90% of small traders lose. They just lose!

emg · May 4, 2012

Quote from emg:

Here is chart on what all small traders are doing.

small traders will repeat this cycle for the next 20 years.

More than 90% of small traders lose. They just lose!

The question to u SMALL TRADERS, how will u become a successful CAREER trader without achieving Higher Education (Math, computer science degrees) and working in a trading firm after graduating?

shopster · May 4, 2012

" Many outstanding intelligent people are horrible traders.
Average intelligence is enough. Beyond that, emotional makeup is more important.
This is not rocket science.
However, it is much easier to learn what to do in trading than to do it...."

" The key is consistency and discipline. Almost anybody can make up a list of rules that are 80% as good as what we taught. What they can't do is give (people) the confidence to stick to those rules even when things are going bad........"

Rich Dennis

testicular fortitude is required for the game and the ivy league crowd have next to zip.

you bet your left nut and pull the trigger.

absolute return is the result.

cheers,

s