why Wall Street traders win and you don't

Quote from garfangle:

For the self-trader it is tough to make money, yet when they see those who inhabit Wall Street making millions it is tough to reconcile why they are successful and you are not. So, here are some reasons why Wall Street traders (WST) win and the Average Joe trader (AJT) loses (or does not do as well) even if he is has a large account:

1) WST has access to the best, cheapest and fastest technology platform and execution; AJT uses either a retail broker like Ameritrade or a somewhat advanced platform like IB. - SUCCESSFUL AJT DOES NOT NEED ANY OF THAT FANCY STUFF. IN FACT AJT CAN BE SUCCESSFUL BY PLACING ORDERS OVER THE PHONE. SO A BASIC RETAIL PLATFORM IS GOOD ENOUGH

2) WST receives data from vendors like Bloomberg and analyst research that can cost tens of thousands of dollars; AJT is limited to Yahoo Finance and StockTwits. - AJT DOES NOT NEED ALL THAT INFORMATION. AJT CAN BE SUCCESSFUL IN COMPLETE ISOLATION WITHOUT ANY SNIFF OR SNUFF OF THE LATEST RUMOUR, NEWS/HINTS

3) WST enjoys a comfortable salary and benefits; AJT is not paid while trading. SUCCESSFUL AJT IS PAID BY HIS PROFITS

4) WST risks his firm's capital while learning to trade; AJT risks his own capital while learning to trade. THIS MAKES A SUCCESFUL AJT A BETTER TRADER THAN WST PIKER

5) WST risk-reward is skewed to the upside: if successful he can earn millions; if unsuccessful he is fired, but can usually land a respectable job elsewhere; AJT risk-reward is either evenly-split or to the downside: if successful he can earn potentially millions (though more likely in the thousands), but if unsuccessful his life savings are wiped out and no one hires an unsuccessful amateur. ITEM 4 ABOVE NEGATES THIS SCENARIO

Thoughts?
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Quote from garfangle:


5) WST risk-reward is skewed to the upside: if successful he can earn millions; if unsuccessful he is fired, but can usually land a respectable job elsewhere; AJT risk-reward is either evenly-split or to the downside: if successful he can earn potentially millions (though more likely in the thousands), but if unsuccessful his life savings are wiped out and no one hires an unsuccessful amateur.
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#5 is the most important one on the list. The guys who work on Wall Street usually have degrees from big name colleges and aggressive personalities. If they fail on Wall Street, then they will get a job somewhere else. If the retail trader fails, they fail and you won't be able to explain that easily.
 
Quote from Cheese:

Of course institutions and investment banks have advantages in market knowledge, current market play at any one time and money power to deploy. This is WHOLLY IRRELEVANT to the amateur trader with limited capital who wants to make his money in the markets.

You as an individual trader have only to apply rationality to what you see occuring on market charts. Yes, thats correct, you see price doing what? Going up and down? Correct - gyrations, waves, swings, whatever you want to call what you see.

Shut out all irrelevancies. Get down to your study and preparations. Concentrate where the money is waiting for you to collect it. Plan how you will exploit the markets daily gyrations (eg CL). Sim test your proposed methods. And accordingly either devise or adopt a reliable methodology to take as much you can from the sequential swings which make up the days price gyrations.

Remember, bottom line, making yourself rich is still a choice.
:)
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Are you copy this from any trading book out ? :D

Summary - No edge No Money, even if you find an edge, it will erose really fast (your broker will steal from you, "someone" will hack your account or learn from you when you put your position on the market..). :D
 
Quote from galvinlee888:

even if you find an edge, it will erose really fast (your broker will steal from you, "someone" will hack your account or learn from you when you put your position on the market..). :D
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have a proof? i do..but my expirience is opposite
 
Quote from the1:

No silly. Wall Street makes a market and profits on the spread, which is almost guaranteed and they have access to inside information that you and I can only dream about. If you take away the advantages Wall Street has their traders become just another schmuck trying to make a buck.
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Yea thats a pretty good summary.
 
Quote from PeeledGrape:

THE idea is not to trade Against them,

Let alone try to Beat them...

but rather to LEAN on them,

and ride them....

like the disgusting, risk subsidized,

fat bitches they are.
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The question is - how you know their direction and ride on them ? :D
 
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