Why Do We Trade? For Real.

xandman · Mar 10, 2015

From a social perspective, its more sport/gladiatorial.

Scratching out a living is too mundane at times. BUt it's that very same boring predictability that piles on trading profits...

cornix · Mar 10, 2015

Thank you, Xandman. This kind of analysis is exactly what helps to see the picture clearer.

If we see why exactly different people trade, we can also come closer to seeing why some fail and others succeed at it.

marketsurfer · Mar 10, 2015

cornix said:
Fun from what exactly? Analysis, uncertainty of outcome, profits, proving yourself something? Or none of the above?

uncertainty chaos control ----- uncertain outcomes are a must in our generic and mostly safe world

globalarbtrader · Mar 10, 2015

cornix said:
For successful achievement of every goal it's extremely important to have a clear understanding of that goal. What exactly you want to achieve in every detail.

Process of asking yourself this question can help motivate yourself much better as well as reveal possible embarrassments, which prevent the goal from being achieved.

In this context: why do you trade?

I'm trading fully systematically so my context will be different to many.

It's about 20% for the money, and 80% for the fact I find 'it' interesting, where 'it' is a combination of research, software engineering and a fascination for the markets.

Only 20% for the money because I would be okay if I just stuck my capital entirely into a diversified ETF portfolio (although earning trading profits does make life a little more enjoyable).

I guess this might help me, because I don't feel the need to run my system at excessive risk levels. I really believe that trading purely for money, and requiring a certain level of returns if this is your only source of income

a) encourages over betting and results in blowups, and
b) leads to stress, lack of focus and mistakes if discretionary trading; or failing to stick to a system if trading systematically.

Scataphagos · Mar 10, 2015

I trade for the money. Early on I thought trading a way to make a LOT of money and believed I could be successful.

cornix · Mar 10, 2015

marketsurfer said:
uncertainty chaos control ----- uncertain outcomes are a must in our generic and mostly safe world

So fun for you is feeling in control of chaos?

cornix · Mar 10, 2015

globalarbtrader said:
I'm trading fully systematically so my context will be different to many.

It's about 20% for the money, and 80% for the fact I find 'it' interesting, where 'it' is a combination of research, software engineering and a fascination for the markets.

Only 20% for the money because I would be okay if I just stuck my capital entirely into a diversified ETF portfolio (although earning trading profits does make life a little more enjoyable).

I guess this might help me, because I don't feel the need to run my system at excessive risk levels. I really believe that trading purely for money, and requiring a certain level of returns if this is your only source of income

a) encourages over betting and results in blowups, and
b) leads to stress, lack of focus and mistakes if discretionary trading; or failing to stick to a system if trading systematically.

May I ask, what was the reason that it's the markets related research and engineering you found the most interesting? Why not space rockets for example?

cornix · Mar 10, 2015

Scataphagos said:
I trade for the money. Early on I thought trading a way to make a LOT of money and believed I could be successful.

So you logically assumed trading is the optimal way for you to make the most money?

lucysparabola · Mar 10, 2015

marketsurfer said:
uncertainty chaos control ----- uncertain outcomes are a must in our generic and mostly safe world

Scataphagos · Mar 10, 2015

cornix said:
So you logically assumed trading is the optimal way for you to make the most money?

Didn't think about it as "optimal".... just "looked doable" and understood it would be important over a lifetime.