Why Do We Trade? For Real.

i am nobody · Mar 15, 2015

cornix said:
Anything but net long options or no leverage net long in other instruments is riskier than most think.

Theoretically correct but in real life risk depends of 2 factors at least:

What do you do?
Who does it?

Even ab idiot can start to daytrade, nobody has to do a test before trading. All that is required is money. Because almost every trader thinks he is much better than the average trader a lot of diasters happen. Let daytrader do a test an at least 50% of the candidates will not be allowed to daytrade. Which will reduce risk massively. For the top 20% of traders the risk is totally different then for the 50% lowest traders. And the test will not have any consequences for the top 20. Consequences will be huge for the lowest 50% (or rather the lowest 85%).

If I drive at 200 miles an hours with my car, risk is at least 10 times lower then if my girlfriend drives at 100 miles an hour. My girlfriend has no drivers licence.

cornix · Mar 15, 2015

marketsurfer said:
Why do you think net long anything is less risky?

At least you can't lose more than you invested. Not so in leveraged futures position caught in a flash crash.

cornix · Mar 15, 2015

i am nobody said:
Theoretically correct but in real life risk depends of 2 factors at least:

What do you do?

Who does it?

Even ab idiot can start to daytrade, nobody has to do a test before trading. All that is required is money. Because almost every trader thinks he is much better than the average trader a lot of diasters happen. Let daytrader do a test an at least 50% of the candidates will not be allowed to daytrade. Which will reduce risk massively. For the top 20% of traders the risk is totally different then for the 50% lowest traders. And the test will not have any consequences for the top 20. Consequences will be huge for the lowest 50% (or rather the lowest 85%).

If I drive at 200 miles an hours with my car, risk is at least 10 times lower then if my girlfriend drives at 100 miles an hour. My girlfriend has no drivers licence.

That's why top traders trade OPM.

i am nobody · Mar 15, 2015

cornix said:
That's why top traders trade OPM.

I don't know what OPM is, which means that I am not a toptrader. :eek:

smallStops · Mar 15, 2015

cornix said:
That's why top traders trade OPM.

For what reasons do people want to believe that all top traders trade OPM?
What is upsetting if some top traders are not interested in OPM?
And what is the rate of failure for HF - where supposedly all top traders are supposed to land?

VPhantom · Mar 15, 2015

i am nobody said:
I don't know what OPM is, which means that I am not a toptrader. :eek:

Pretty sure it's Other People's Money.

marketsurfer · Mar 15, 2015

smallStops said:
For what reasons do people want to believe that all top traders trade OPM?
What is upsetting if some top traders are not interested in OPM?
And what is the rate of failure for HF - where supposedly all top traders are supposed to land?

Ahh, maybe because it's reality?

Name one. They do not exist, only in fantasy land and perhaps several outliers who live under the bridge. surf

marketsurfer · Mar 15, 2015

Once again most of this "wisdom" is false. Many many many folks "get lucky" in the markets--- and make a fortune. Hard work at the wrong ideas is worse than no work at all. get the Joke!

smallStops · Mar 15, 2015

MarketSurfer :

You seem to love the word "fantasy" "impossible" etc...

May I ask : what is the failure rate of HF : just facts please.

marketsurfer · Mar 15, 2015

smallStops said:
MarketSurfer :

You seem to love the word "fantasy" "impossible" etc...

May I ask : what is the failure rate of HF : just facts please.

Tons of hedge funds fail. I am still waiting to hear from a wildly successful trader who trades his.her own money only. Sorry to say, MOST ALL successful people don't actively trade-- there own money. they know better.

surf