After thinking about trading for some time, I think I realize why traders fail (You must be thinking: Wow, this guy is good, I want to know the reaon). Many reasons. I decide to start the thread under "Psychology," and you should know where I want to go. Let me undermine my credibility by saying that I am not a profitable trader (I know you are disappointed). I am still learning. But I have decided that I am going to make a living out of day trading. Retail day trading started in the 1990s, I think, the 2001 market crash killed most of the day traders. Some survived, they are the toughest ones. I decided to go into the business of day trading a few years ago, with the low commission and the internet technology, why not? The playing field seems level for most participants (except those insider trading people).
I picked up a book yesterday at the bookstore, written by Oliver Velez and Greg Capra (hope I spelled his name correctly). Velez wrote in the first few pages about his first day trading in a prop firm, with 70 other traders. He lost $16,000 within half an hour, equal to 8-month wages of his prior job. He was stunned, he put his head in his hands and, he wrote, "I wept."
I seldom get emotional, but after reading those words, tears came into my eyes, not only for Velez, but also for all the traders who are struggling out there. My eyes produced more tears when Velez wrote that he didn't say anything to his wife when he got home that day, and that he was only able to talk to his wife about that day, the first day, many months later. Now I have deeper respect for those who have made it and become profitable.
I read another book, about 10 traders who made it. One guy studied Italian as an undergraduate (You must be wondering what the hell is wrong with him), law as a graduate, poor grades, didn't get a lawyer's job, worked on odd jobs, claiming that he didn't want to become a lawyer. I had a feeling he just couldn't do it. Anyway, he had a hard time.
I picked up a book yesterday at the bookstore, written by Oliver Velez and Greg Capra (hope I spelled his name correctly). Velez wrote in the first few pages about his first day trading in a prop firm, with 70 other traders. He lost $16,000 within half an hour, equal to 8-month wages of his prior job. He was stunned, he put his head in his hands and, he wrote, "I wept."
I seldom get emotional, but after reading those words, tears came into my eyes, not only for Velez, but also for all the traders who are struggling out there. My eyes produced more tears when Velez wrote that he didn't say anything to his wife when he got home that day, and that he was only able to talk to his wife about that day, the first day, many months later. Now I have deeper respect for those who have made it and become profitable.
I read another book, about 10 traders who made it. One guy studied Italian as an undergraduate (You must be wondering what the hell is wrong with him), law as a graduate, poor grades, didn't get a lawyer's job, worked on odd jobs, claiming that he didn't want to become a lawyer. I had a feeling he just couldn't do it. Anyway, he had a hard time.
