Time to profitability

Quote from lato:

Guys!

When the original turtles were...

Trade safe.
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lato,

just heard Disney is going to come out with:

"Snowhite and the Seven Turtles"

you'll like that one
:)
 
I made a lot of money trading bond ETF's at ETG as a prop trader in NYC in the early 90's pre-decimalization. Trading is rediscovering yourself and the markets over and over.
I was not profitable before ETG, trading on the CBOT floor. After that I had a few losing years and I am only trading part time now.
 
andrasnm,

Since whatever technique you used on ETF's that long ago is likely not working now, would you mind giving an idea as to what method you employed back then?


Quote from andrasnm:

I made a lot of money trading bond ETF's at ETG as a prop trader in NYC in the early 90's pre-decimalization. Trading is rediscovering yourself and the markets over and over.
I was not profitable before ETG, trading on the CBOT floor. After that I had a few losing years and I am only trading part time now.
More...
 
This was pre-decimalization NYSE - often we were happy to make 1/16's or scratch but more often than not we made 1/8-3/8 relatively risk free. We had the firms leverage and offered premium bond ETF's and bid for discounted ones so we always stayed neutral give or take a few thousand. Many times we were hooked for a 1/4 only to see it come back and get out even. This was boring business but extremely profitable - the goal was to make 1/8 to 3/8 long or short. I remember my long position's dividend came into several thousand a months profit enough to pay my desk fee and lunch money... :)

P.S. this could still work but I am not with any prop firm (no series 7)
and surely the amount you make will depend on the specialist too.
Quote from risktaker:

andrasnm,

Since whatever technique you used on ETF's that long ago is likely not working now, would you mind giving an idea as to what method you employed back then?
More...
 
Quote from zf trader:

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.
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What about the company that buys that grain to make cereal or bread. A big company like kelloggs or wonder bread buys your Futures contract off you for $3.75 and holds for delivery. They are paying $81,250 at delivery

By "MY" math $81,250 - $81,250 = Zero....as in "zero sum game"

As for people that talk about brokers commissions chipping away at the stock market...Well YOU pay that commission...not the stock market...that money comes out of your cash account not out of the stocks you own. Brokers commission has nothing to do with the value of a stock, its just a fee like internet connection or paying for e-signal or buying your computer.
 
It was well said earlier that is not important when you are profitable, but when you are NOT profitable. It's a crazy oxymoron but until you lose really bad you really can't be any good. If you keep winning you will keep thinking you can keep winning. So finally one day you lose bad. So you learn your lesson and win big for a long time again but get careless and then lose really bad. Then it takes you a month to regain what you lost in one week. During this time you go around saying "I have worked a whole freakin month to make nothing. This sissy money management crap sucks." You look at your waitress girlfriend and say "she makes more than me". You look at your dog and can hear him say "what's next, dumpster diving?." You tell yourself you can shake it off. Just hang on.

But shit floats, and every character flaw you have comes to the surface. Soon your life becomes about treating your own inadequacies while waiting for the damn market to bring some damn relief already. This is not why you got into trading. You soon find it difficult to study the markets. When it's time, you're nervous to trade. If only you would make a few bucks then you could concentrate again. You follow your systems but they are not making money quickly enough. You become frustrated and agitated. You yell at your girlfriend. Then your dog. Then yourself. You see your whole life sink like a bad stock as you watch your own relative strength hit rock bottom.

And you know that with only one trade you can redeem yourself from all of this madness. Your mouse is the giant broom that can sweep all of this misery away, if you would just man-up and place that one big trade.

So you do.

:eek:
 
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