Why Most Retail Active Traders Lose

[Cesko]

Quote from nitro:

For sure, but this post is one of the most loaded (in terms of possibly deeps statements made) posts I have ever seen on ET and sits at the heart of my current research.

There are countermeasures...

nitro

Any time people talk about research, back testing etc., I wonder what the hell there is to research.

 

[nitro]

Quote from Cesko:

Any time people talk about research, back testing etc., I wonder what the hell there is to research.

Yeah, I know. But I assure you there is a universe of ideas that are rarely if ever explored on this site.

I wish I could share my research with people...It is my nature as I am from the scientific mold where sharing ideas with other like minded souls and it's excitement is part of the thrill. Making money just pays the bills...

However, the markets and it's participants are like the Biotech firms - you get paid by what you know that the other firm doesn't know, for as long as possible, and then when they catch up to you, you have to be on your way to the next drug lest you be driven out of the market.

If there is one thing that wears at me about this business it is that secrecy that one must maintain to retain an (perceived or not) edge. It is not my nature...

nitro

 

[syswizard]

what I discovered from a guy named Keith Fitschen, a pretty well-known trading system developer:
Day trading strategies that work best are COUNTER-TRENDING strats short-term.
DVD: "Developing Tradeable Systems" by Keith Fitschen.

The other item to note.....just look at the price action of AMZN this past Friday as it opened down and then rocketed for a short period of time, and then just sold off.
The entire up-move just "stunk" of MM's getting short...as my On Balance Volume indicator was just going sideways as the price action was going straight up.
It was a GREAT SHAKE-OUT the shorts move.
Some traders have recently mentioned that Nasdaq MM's could be worse than the NYSE specialists......
now I am a believer !