The math tells an opposite story. Let's say that a "pro" is an employee of a financial firm whose compensation is directly tied to the PnL. Given todays levels of compensation (starting salary of 150 for a college grad, 250 for a graduate degree), she'd probably be worth 7 figures after 6-10 years in the business. I very much doubt there are many private traders who can manage the same.
Why Work with a Trader/ Mindset Coach
- Thread starter Andrea Wylan
- Start date
The reason for this being the pro uses other peoples money and in huge amounts.
Hence they may not outperform retail in a one on one scenario, but the pro working for a firm swinging millions of dollars will be compensated more than a small retail guy.
The pro in a firm will have more tools at their disposal too, but take pro home to trade.....hmmmm....slight difference...
The pro is also much more constrained in his decisions, by things like mandate, liquidity etc. Even if unconstrained, it's much easier to make good returns on small amounts of capital. The experience shows that most pros that have switched to retail-style investing/trading (for example when they retire) have handsomely outperformed average retail Joe.
This is irrelevant, as what matters is the number at the bank and the pros (by hook or crook) outperform the retail dreamers in that department.
In all the trading competitions I've seen when its a head to head competition as in equal trading tools...the retail traders have consistently outperformed the Pros.
Yet, in the real world competition...Pros will out trade a Retailer along with having less risks.
wrbtrader
Andrea Wylan
Sponsor
Looks like fun!
Out of curiosity, what portion of your clients have real psychological issues? If they do, do you find that the problem transcends their profession and spills over into their daily lives?
I have seen a lot of traders who start viewing everything in life as a trade and it really hurts them. Like they would perceive their marriage as a trade and always look for a better deal. I have also seen a lot of traders (especially derivatives/options trading types) to be very indecisive in their personal lives, as they want to retain optionality and be as hedged as they can.
I have seen a lot of traders who start viewing everything in life as a trade and it really hurts them. Like they would perceive their marriage as a trade and always look for a better deal. I have also seen a lot of traders (especially derivatives/options trading types) to be very indecisive in their personal lives, as they want to retain optionality and be as hedged as they can.
Andrea Wylan
Sponsor
Hi Same, to answer your question it’s not so much that they have psychological issues. We all have psychological issues. Losses and traumas from childhood… That may never really come to the forefront in our regular lives. As a trader it’s like putting a mirror up to your face and showing you where some of these challenges are.
But pretty much everyone has some form of challenge! So the question is Who can recognize that in their trading life . . and see it connected to their trading problems? And then who wants to confront themselves? I think that’s where the work is.
Traders tend to prefer to research charts and strategies and indicators and spend less time looking at themselves.