To be a winner, do like winners: winners don't trade!
- Thread starter crgarcia
- Start date
The fact is that much of upper/middle class wealth is in RE and Stock/Bond holding, some of them are "guided" some are self-managed, and these people are far outweigh the number of some traders who are billionaires now, we are talking at least 100:1 ratio. Smart money always used some market timing and never bought into the Buy and Hold myth (which is for suckers)....that is also a FACT... but that is far from idiotic day trading....
Of course the problem is that this business of proven porfolio building and risk and money management while pursuing a business or trade on the side is above most trader/billionaire wanna be here on ET...they want to do this FULL TIME..
I know this as my wife is a CPA and her mentor is an old time CPA now in his sixties and he could tell you stories of money that would spin your heads.
How many ML private clients are worth seven figures? and this is just one broker. Day Trading is like poker or sports betting, few shine most whine and piss money away....
Of course the problem is that this business of proven porfolio building and risk and money management while pursuing a business or trade on the side is above most trader/billionaire wanna be here on ET...they want to do this FULL TIME..
I know this as my wife is a CPA and her mentor is an old time CPA now in his sixties and he could tell you stories of money that would spin your heads.
How many ML private clients are worth seven figures? and this is just one broker. Day Trading is like poker or sports betting, few shine most whine and piss money away....
I tend to agree. Business/Career ( daytrading) is simply there to provide cashflow in a relatively secure environment. It's not hard to place yourself in a position to generate 200-300 K plus per annum tax effectively, I see many skilled labourers let alone business people achieving these net outcomes for very little or no risk (as opposed to high risk daytrading) and then you just need to manage your investments prudently. Over the years I've been through the whole gammit, wages employee, businessman, full time daytrader, options trader writer/swing, front line construction manager but after being busted out a number of times (I can be hard headed) I realized that the only money that's important is the money that you are guaranteed to hold on to! Yes some people can make money daytrading (christ even I did but ultimately not enough to justify continuing when compared to other alternatives) but generally as a rule the more you want to make the more you will have to risk which will usually result in a major blow-up at some point, and then back to square one or worse! For anyone with the goal of building wealth you need a method of protecting your assets - stop losses simply won't do the job, you must have a strategy ( think compound returns, investment mathematics) that has it's own built in safety mechanisms, therefore full time trading alone is simply to unreliable and generally ineffective.
I just wish that I had understood this 30+ years ago!
Good Luck
Johno
Fantastic post. "The Alchemy of Finance" by Soros is a great read if you want insight into the daily grind of a TRADER.
Take a look at the top earning traders the last few years: Simons, Arnold,PTJ, Shaw. I'm pretty sure they dont' "Invest".
S
LOL, Yeah, investing over the last 10+ years has really been good man, with the S&P and Nasdaq still below their 1999 levels and the Nikkei still even below it's 1985 level 
But of course, a brilliant 'investor' like you could easily beat the indices and you would have made money instead of lost like all the other investors 
I could easily come up with an as stupid generalisation as you've just made and tell that real winners like Paul Rotter trade and they don't invest.
No wonder you failed at trading, you're just not too bright and in case you wonder, yeah you do need a brain to succeed.
But of course, a brilliant 'investor' like you could easily beat the indices and you would have made money instead of lost like all the other investors I could easily come up with an as stupid generalisation as you've just made and tell that real winners like Paul Rotter trade and they don't invest.
No wonder you failed at trading, you're just not too bright and in case you wonder, yeah you do need a brain to succeed.
Are you asserting that every "investor", remained in the market fully invested before the crash of 08? That is a mighty Assumption and you are making an ass of yourself for doing so. I for one got out right before the crash and stayed in cash and bonds, I only manage retirement money but that is far more productive and interesting as to see loser(gambler) on ET chasing pipe dreams....
Now I am back in stocks maybe 20 percent of my net worth that is likely a sum you'll never see in your sorry, greedy, short time, two time loser lifetime
Now I am back in stocks maybe 20 percent of my net worth that is likely a sum you'll never see in your sorry, greedy, short time, two time loser lifetime
Quote from luckybastard:
LOL, Yeah, investing over the last 10+ years has really been good man, with the S&P and Nasdaq still below their 1999 levels and the Nikkei still even below it's 1985 level
I could easily come up with an as stupid generalisation as you've just made and tell that real winners like Paul Rotter trade and they don't invest.
No wonder you failed at trading, you're just not too bright and in case you wonder, yeah you do need a brain to succeed.
LOL, I'm not asserting anything, just feeding back something to the TO that's about as stupid as what he says. He might learn something (although I doubt it).
And btw, since you're obviously such a smart and succesfull investor, what IS 20% of your net worth ?
There is nothing so blind as a no-eye deer!
I doubt that they ever consider what you or I have discussed!
Was 60% of liquid assets in stocks for the recent run up but have reduced to approx 25% several weeks ago. I hear a lot of hype but not so sure things are what they are being portrayed. Time will tell!
Reading back this thread I only see the remark that you admit having failed at daytrading, is that what you're referring to ?