Time to profitability
- Thread starter MakingBank
- Start date
That is only true if you hold the contract until expiration. I can buy 1 contract of ym for 10300 and sell for 10350 and then that buyer turns around and sells at 10400 on the same.
Whether it is a zero sum game or not is an idiotic question.
It has no importance for your trading. So what's the use of discussing about it?
It's better to save that energy for real important issues that can change or improve trading.
That is true in terms of dollars made or lost. But you are ignoring the risk side. I can go naked long and make money. But the short position, which loses money, might have been a hedge against another position. So I make money and he reduced his risk. We both accomplished our goals. We both win.
It took me 2 years of full-time trading to become consistently profitable, which is far better than average. Average is that you trade for 6 months and lose all your money and then go do something else for a living.
I blew out my little daytrading account too many times to count. If I hadn't kept capital reserves outside of my trading, I wouldn't have made it.
Trading is not a zero-sum game, it is a negative-sum game b/c the brokers are constantly taking little bits of capital out of the game. If you could trade without paying a broker (or paying margin on borrowed capital or pips on FX) then it would be a zero-sum game.
Trading for a living is the hardest career in the world. I also find it to be the most satisfying. But I wouldn't wish it on my worst enemy, let alone some wide-eyed newbie with romantic dreams in his head.
Each of us must decide whether or not it is personally worth it to us to pursue a career with a 95% (at least!) failure rate. I have made my decision and paid my dues (and am still paying them).
The market is a cruel taskmaster. It will teach you, but it will never spare the rod when rendering a lesson.
You have to make up your own mind if this is for you. I hope you understand what the odds are when you make your decision.
I blew out my little daytrading account too many times to count. If I hadn't kept capital reserves outside of my trading, I wouldn't have made it.
Trading is not a zero-sum game, it is a negative-sum game b/c the brokers are constantly taking little bits of capital out of the game. If you could trade without paying a broker (or paying margin on borrowed capital or pips on FX) then it would be a zero-sum game.
Trading for a living is the hardest career in the world. I also find it to be the most satisfying. But I wouldn't wish it on my worst enemy, let alone some wide-eyed newbie with romantic dreams in his head.
Each of us must decide whether or not it is personally worth it to us to pursue a career with a 95% (at least!) failure rate. I have made my decision and paid my dues (and am still paying them).
The market is a cruel taskmaster. It will teach you, but it will never spare the rod when rendering a lesson.
You have to make up your own mind if this is for you. I hope you understand what the odds are when you make your decision.
I remember back in my university day some prof say "but remember futures are a zero sum game, for every winner there is a loser"
Lets consider a farmer who has wants to grow grain. To buy seed and fertilizer he has to borrow money from the bank. In order to get that loan the bank manager set out the condition that the wheat must be sold for $3.50 a bushel.
So the farmer tells his broker to sell the August future at $3.50. Next thing you know he is filled, gets the loan and grow a good crop. That year the farmer makes $80,000 for his family.
On the other side of the trade I bought wheat at $3.50 on a seasonal trend trade. Two days later I sell at $3.75 on the volatility of a USDA report making $1250.
By my math total profit from the trade is $81,250
To say that trading is a zero sum game is dead wrong.
Lets consider a farmer who has wants to grow grain. To buy seed and fertilizer he has to borrow money from the bank. In order to get that loan the bank manager set out the condition that the wheat must be sold for $3.50 a bushel.
So the farmer tells his broker to sell the August future at $3.50. Next thing you know he is filled, gets the loan and grow a good crop. That year the farmer makes $80,000 for his family.
On the other side of the trade I bought wheat at $3.50 on a seasonal trend trade. Two days later I sell at $3.75 on the volatility of a USDA report making $1250.
By my math total profit from the trade is $81,250
To say that trading is a zero sum game is dead wrong.
Guys!
When the original turtles were invited-hired,only few of them followed the system,really just one guy,and all the information was present to them right b4 their eyes.
They knew what the edge was!!
And most of them did not follow that.
So, elitetraders,
There must be on this site some info,edge,right stuff,or maybe only direction towards what works.
Still for the most this will not do any good.
What stands in the way?
I do not know,
for me was the ego,
traders worst enemy!!!
I recommend to someone to open the board,that only if one is profitable,by sending copy of tax return.
That board would have quality posting.
Thare would be anger,blow up is a hard thing to swollow.
But as some of You who are profitable,would like to post and get comment from similar person.
I do not know anybody who is profitable other than me,
Do You?
I sure would like to talk to sometraders,and was sure the other person is in the same position as me.
That is very rare,to be profitable and talking to similar bunch create sense of club.
Than it would be like LT writes in his biography,that some junkies would go to so called Honesty House and then go back on drugs again-thats a joke.But when i read his book it strikes me how hard is to get off drugs,and how hard is to be profitable.
So there are AA meetings etc,where they talk to one of their own.
There should as well be profitable traders board,where one would talk to their own.
Trade safe.
When the original turtles were invited-hired,only few of them followed the system,really just one guy,and all the information was present to them right b4 their eyes.
They knew what the edge was!!
And most of them did not follow that.
So, elitetraders,
There must be on this site some info,edge,right stuff,or maybe only direction towards what works.
Still for the most this will not do any good.
What stands in the way?
I do not know,
for me was the ego,
traders worst enemy!!!
I recommend to someone to open the board,that only if one is profitable,by sending copy of tax return.
That board would have quality posting.
Thare would be anger,blow up is a hard thing to swollow.
But as some of You who are profitable,would like to post and get comment from similar person.
I do not know anybody who is profitable other than me,
Do You?
I sure would like to talk to sometraders,and was sure the other person is in the same position as me.
That is very rare,to be profitable and talking to similar bunch create sense of club.
Than it would be like LT writes in his biography,that some junkies would go to so called Honesty House and then go back on drugs again-thats a joke.But when i read his book it strikes me how hard is to get off drugs,and how hard is to be profitable.
So there are AA meetings etc,where they talk to one of their own.
There should as well be profitable traders board,where one would talk to their own.
Trade safe.
