Who profits when retail traders lose?

opt789 · Jun 25, 2008

Quote from Bogan7:

The list can go on and on and on there is no boogey man out there so stop looking for excuses to why you are loosing money and look a bit closer to home it will improve your performance I promise.

What he said.

bahdabing · Jun 25, 2008

Quote from Bogan7:

Sorry your an idiot. I worked as an institiutional broker/trader over the last 15 yrs at some major houses and crap like your saying is so far off the money. New traders lose their own money because they are

1. New
2. Undiscplined
3. Undercapitailzed
4. Inexperienced
5. Stupid
6. Trade without an edge
7. Have no money management experience

The list can go on and on and on there is no boogey man out there so stop looking for excuses to why you are loosing money and look a bit closer to home it will improve your performance I promise.

Amen to that. I lost plenty in the early years. If I believed someone had the "fix" in I never would have kept trying to make it. Looking back now, I can see why I lost money, it doesn't matter who I lost it to. Once you lose....you lose LOL.

Bogan7 · Jun 25, 2008

Quote from trader_david:

I would say the major loss is: commission. the more you trade, the more the brokage firms make and the exechange, they are the consistent winner.

This was defo a factor but much less so now. I remember a collegue of mine who was broking in the late 80's and had a client who had made 16 trades 13 of them winners and was still in the red due to comms which were over 150 bucks R/T in those days for retail accounts. Even instituational accounts in the 90's were getting ripped I was charging a very big Telco 3.5 pounds a lots excuction and clearing one way and they were happy to pay try getting that now and they were doing size. Ching ching!!!

cashmoney69 · Jun 25, 2008

Quote from jonbig04:

I think thats a good question!

I recently read a stat that said 95% of new futures traders lose money, and most futures traders in GENERAL lose money. I for one love these odds. Love them.

But where does this money go??? Do successful futures traders just rake in boatloads?

I guess the 95% losers feed the 5% winners....thats a lot of money floating around.

jd7419 · Jun 25, 2008

Quote from opt789:

I suppose my YTD p/l and ROI would make me one of the successful traders.
Something to consider: the percentage of my commissions to gross p/l is 1.86%.

That is excellent opt789. Different strokes for different folks though. Anytime I try to reduce my commissions by trading less frequently it negatively affects my bottome line. I am at peace with my firm and subllc making a nice living off my commissions since I have profited handsomely as well these last 9 years. It's really just my cost of business.

Cutten · Jun 25, 2008

Quote from Option Trader:

Especially for first year traders, there are shocking statistics regarding the percentage of retail traders who lose, and lose large amounts of money or everything.

Who is on the other side of their trades? (I have my own belief about what happens, but would like to hear your input).

Exchanges, brokers, the taxman, and the small minority of consistently profitable traders.

JSSPMK · Jun 25, 2008

Quote from Option Trader:

Especially for first year traders, there are shocking statistics regarding the percentage of retail traders who lose, and lose large amounts of money or everything.

Who is on the other side of their trades? (I have my own belief about what happens, but would like to hear your input).

When I lost my account I recall calling them F...ing Cu..s!

<img src=http://thegreatsithacademy.com/images/anakin.jpg>

Cutten · Jun 25, 2008

Quote from opt789:

I suppose my YTD p/l and ROI would make me one of the successful traders.
Something to consider: the percentage of my commissions to gross p/l is 1.86%.

My commissions to gross p/l is around 6% on my intraday trading.

Jayford · Jun 25, 2008

Quote from ChkitOut:

So yeah, I think its true most traders can't beat commish and the spread. Thats where most of the account deposits go.

It all depends how you trade. Placing only a few trades per day, and aiming for decent sized moves pretty much makes spreads and commish a non issue.

The issue is how well you place and manage the trades, which in itself takes a lot of practice.

Scalping like a madman definitely requires some serious skill to avoid getting eaten up by commish and spreads. Its why I have never been able to do it.

bighog · Jun 25, 2008

Commissions are nothing more than a cost of doing business, deal with it.

90% lose before they "GET IT", 10% will take your marbles because they "HAVE IT"

Game over.

PS: Fresno State is thumping Georgia in College world series. I hope they win, great story of underdogs. Some kid has smoked 2 homeruns and a long double and brought in 6 runs, if they win he will get laid at least twice when back at school.

<a href="http://www.sweetim.com/s.asp?im=gen&ref=11" target="_blank"><img src="http://content.sweetim.com/sim/cpie/emoticons/00020259.gif" border=0 ></a>

Who profits when retail traders lose?

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