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Originally posted by Brandonf


If you catch the brokers in an honest moment most will admit that more than 90% of the accounts are not profitable, the success rate is higher on the floor, and probably at professional firms where you are surrounded by others who know the ropes etc. Most people though don't even have the discipline to come up with a plan, let alone follow one.

Brandon
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If you catch the brokers in an honest moment...

Just what kind of bait do you have to use to catch a broker in an honest moment....
 
I've been looking for a reason to use this....

<img src="http://www.pointlesswasteoftime.com/johncheese/files/hypnosis.gif"></img>

Thanks for giving me one.
 
Originally posted by Brandonf


Most people though don't even have the discipline to come up with a plan, let alone follow one.

Brandon
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This and this alone is the main reason there are so many unprofitable traders.
 
Originally posted by OPTIONAL777


If you catch the brokers in an honest moment...

Just what kind of bait do you have to use to catch a broker in an honest moment....
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Although I have not yet figured out what all these bad brokers did to you, I have to admit I find your posts amusing. Thanks for the laugh.
 
where did you all find all the cool pictures- let me guess- you randomly came across them in your nightly search for internet porn?? :D happy whacking, gentlemen
 
Originally posted by PuffyGums
Those stats are true but they are for traditional, retail commodity customers trading off the floor.

Today most commodity traders trade like floor traders (with practically the same expenses as well). With electronic products there is no disadvantage in trading off the floor.

Regarding floor traders, the estimates I've heard are that 1/3 of the newbies stay on to make an income with it; 1/3 break even and tend to leave in time and 1/3 lose and leave more quickly.
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Puffy. the playing field is leveling but not there yet. While I think Brandon's stats are a little out dated (cheaper commission rates have made more traders profitable), the floor still trades MUCH cheaper, and you can pick off orders too. Compare a guy in the S&P pit paying .10 for a scratch and a 1.60 for a net winner or loser vs. 4.80 on IB for ES which is a FIFTH the size of the pit contract. As cheap as IB is, the rates are the equivalent of $24.00 a one lot SP. WOW!! Plus as you know there is a plethora of times when a broker is offering 50's as someone across the pit is bidding 70, and a nimble local buys the 50's from the broker who doesn't want to risk going cross pit to hit the higher bid. At least a fifth of the S&P pit makes a mil a year(with a few guys at 5-20 mil). I don't think that a thousandth of home based ES traders make that kind of $
 
I was thinking of agricultural contracts which are similarly sized to the emini. Floor members for those contracts pay $1.30 to $2.40 to clear a side which is very similar to what a direct broker charges.

There are certain economies of scale and cost advantages with trading the big S&P that don't carry over to the smaller contracts.
 
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