I disagree. Trading is not a business, although, if succesful it can be run like a business. who has made billions trading their own money who didn't start out with billionaires? Your answer is no one. now, in business, thats a whole different story---
Why Do We Trade? For Real.
- Thread starter cornix
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I disagree. Trading is not a business, although, if succesful it can be run like a business. who has made billions trading their own money who didn't start out with billionaires? Your answer is no one. now, in business, thats a whole different story---
Once again, I disagree. Many make it in business, with hard work etc. all the hard work in the world means nothing in the financial markets if you lack an edge. surf
Here's the thing though: you're including gamblers and such on the trading camp, which skews the statistics quite a bit. People recognize dry cleaning as a business, but many take trading way more lightly. I'd be more interested in stats comparing small business success vs only traders who built a proper business plan (including scaling down during periods of losses, etc.). Not saying the traders would end up the better, but the numbers would be dramatically different.
Eh, that's circular, so we could make the same arguments about trading: pick the right market and system, and trading will make money. Just poking fun now.
It is quite possible to get lucky for a few years but not for a lifetime.
I do not like to talk about myself or any particular person
but imho most if not all people who trade are not traders
they are wannabe traders - they do not know how to trade,
so trading for them is a learning process
in learning process repetition is the most important thing
so trading for most - is just repetition, necessary to learn how to trade
it is very costly process, considering that knowledge here, unlike other human endeavors, is mostly not transferable....
on top of that if surgeon learns his trade on somebody's else open heart, the wannabe traders learn usually on they own open wallet
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The way I understand is that the real truth behind Buffett's wealth is tax schemes. but then again, I am sure he bought many very bright folks to help him on the path.
PS these schemes allowed him to pyramid where everyone else would be stuck paying taxes-- he profits in the same way as the barons of the gilded age. Not saying its illegal, just grey areas----
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Here's the thing though: you're including gamblers and such on the trading camp, which skews the statistics quite a bit. People recognize dry cleaning as a business, but many take trading way more lightly. I'd be more interested in stats comparing small business success vs only traders who built a proper business plan (including scaling down during periods of losses, etc.). Not saying the traders would end up the better, but the numbers would be dramatically different.
Eh, that's circular, so we could make the same arguments about trading: pick the right market and system, and trading will make money. Just poking fun now.
These are good points. But at the core, it takes money to make money, and that is truest in trading--- in biz you can bootstrap, trade skills, etc-- evidence shows this does not work in trading where capital is your resource...
I am just trying to pass along reality as I see it, take it as you will. peace
Berkshire pays taxes like any other corporation. His real edge was buying insurance companies for a little over their float. He was buying $1 of cash for $1.1 knowing that the company would be generating another $1 of cash next year (80 cents of which would be paid out in insurance claims). Every year he had an additional 20 cents to invest which is why he can have such long holding periods. There's always more money to invest next year. It was pure genius and he wasn't the only one doing it. Fairfax in Canada did it as well.
Yes, no doubt about it--- but you don't think there are tax schemes on top of the premium capture? surf