Quote from TudorJones:
Hey Jack, It would be great if you can further explain these two sentences:
1) Just what is the potential for the man in the street to become very wealth? How much money, how fast?
The potential is determined by what the market is offering. Pragmatically an FA sort to get a universe to trade gives you stocks that move on average 2 1/2 % every day od the year. A person who works at the PROCESS of learning to trade can be there in about two months if he sit with someone for 4 hours a week and build two notebooks about two inches think each.
A person, self taught, such as my self completed my working professional career in a few years. From 300 bucks it was moving to Greenwich, having two MB's a sailboat (30') and no job requirement. It was before computers in 1957 to 62.
It is a very fast rise from almost nothing to more than ever needed for anything you want.
I traded the first MB in on a 300 SL gullwing (used).
The simple point is to use a method (go pick it up on the web) and make an average of 2 1/2% a day every day with all of your capital in stocks.
The template can be applied to ES futures as well. It takes time to build the mind for this. The important thing is to build from lone level to the next after each level is securely understood. There is no educational requirement or brain power requirement. If you have the template down for stocks you start out at about 20 points a day per contract in ES. This is 50% of margin from day one. An intermediate can pull down on consecutive days at least 60 points per two days; this is 75% of margin. It is an anti-whipsaw orientation. Small mistakes give you net gains and you get back on track.
2) Why isn't the man not interested in learning to trade effectively and efficiently even with multitudes of trading programs are offered to the masses. ex: BetterTrades, VectorVest, and other insourmountable amounts of trading school etc.
What you are talking about is not what I am talking about. I have talked with those that I am training. many have been through the things you mention or equivalents. At some point we pause and they go through the decision to tell themselves they have been on a wild goose chase sometimes for years. they do not work and they trade successfully but not in a way to realize the portential that the market is offering.
The conventional orthodoxy does not deal with what the market offers. read maverik and his comment on Raske et al. See the conventional orthodoxy as the subject and you do not see the potential of the offering of the market.
Convention is putting a lid on the opportunity.
A person has to pause for a moment and just look at the markets. Just look. You see price changing everywhere you look.
Look at the hugeness of the pools of capital represented by the markets.
You have a ticket to play. It is you capital. Occasionally I type stuff to people such as yourself (a person at genuine inquiry).
I suggest that they fill in a sheet of paper. They probably do not.
What they wrote on the paper (if they did) was how their capital was going to be changing if they were to begin to extract the money that is avaialble in the pools that they see moving price every day.
They can see the changes in price. They can see the pools. they cannot see themselves taking that money, extracting it day after day.
they cannot see anything simply because they have ingrained convnetional beleifs that screw thier rational thought processes so badly that what they see is not possible.
So , okay, you type the two key questions. You inquire.
My opinion does not count actually. What counts is seeing that the money is there. It is there and you can have it and when you take what you want it does not affect the market.
Point one stated that in terms of everyone jumping in the ocean and it would not make the ocean rise. I know point one. He is a pesronwho is doing the learning process and he is doing it well on schedule. He did see the markets and he did see the potential offered. He is taking out money all day long every day.
He got beyond the conventional orthodoxy. He knows it will always be in his mind and he also knows that he comes to the template for making money before he gets to his conventional collection of knowledge.
You can imagine, I belief how hard it is for a person to switch from one trading beleif system to another.
From a survival point of view it is not possible to switch for one profound reason. It is SAFE to be at risk doing what a person knows more easily than it is to become very wealthy.
What people think they know to be best is there all over the place and surrounding them. they cannot escape the permeating and resonating conventional orthodoxy all based on probabilities and gambling. Fermat and Pascal. Quants search for leaks (anomolies instead of the torid flow of capital from one pool to another).
What does it take for a person to have a clear mental moment and see what the market is offering all of the time day after day.
A persom must shut out the conventional orthodoxy and give himself one moment in his life to see what is available to anyone who wants to take it.
It is too risky for people to leave what they believe is SAFE. SAFE by experience, an experience continually wrapped in fear and risk of losing a thing so important it is like a religious consideration.
I get to be with people who fly to Tucson. I get to present a rational understanding of the potential of the markets. they "get it" and it is stronger to them than convention simply because it appeals to another avenue of the rational lives.
think of business and what it takes to make a business successful IT is NOT Pascal and Fermat and probabilities and risk.
See if you focussed on the word risk.
It IS effectiveness and efficiency and optimaization. Whyat did I stand in front of an MBA class and say to mid management executives to educate them for the future? It was operating in excellence. They were searching for excellence.
they can put themsleves in a production facility or a services providing context and wring out of it all that there is to get from it.
Effectiveness...Efficiency and optimizing.
The market produces a flow of capital through price change.
Measure the pace of the flow.
See the vector direction of the flow.
Recognize that you can always participate.
Be on the market all of the time.
Be on the right side of the market all of the time.
When the market changes sides, you change sides.
the only thing is NOW.
NOW is where you measure.
NOW is where you are in the market.
When it is time to change side is abundantly clear to anyone who can measure. I have 17 leading indicators of ES price.
Being a master of trading is not rocket science. It is not complex to know three things:
Be in the market.
Be on the right side.
Change sides when the market changes sides.
Try a few minutes in the market of 50 contracts moving at 2 ticks a minute for 7 point price shift on ES. That happened last week.
100,000 dollars of margin got you 7x 50 x 50 bucks on one normal move where you came into the move by switching sides of the market and you left the move by reversing into the next segments of profits. Right, I do not have to post 2K per contract. I do not have a 50 contract limit. Others may.
You can bank enough money every day to buy almost any kind of car you want. If you want a 12 cylinder car custom delivered it takes a couple of months so you have plenty of time while it is on the boat.
