Why you generally suck

L

longandshort

Good paper from NBER reviewing the performance of daytraders and their role of providing noise to the market. Day Traders, Noise, and Cost of Immediacy | NBER

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key takeaways:
* aim not to be a noise trader -- trade on information or liquidity needs only (see another paper, the only game in town)
* unless you're an ULL HFT, information precedes price -- find it and assess it before making a trade
* trading the news is likely a fools errand
 
Everything is noise in the grand scheme of things. Our whole entire life is just noise. The planet we live in is a tiny little noise in the universe and even the universe is noise in the whole multi-verse and I am sure the multi-verse is just noise in the bigger multi-verse.

The reason why daytraders supposedly suck is not because they trade noise; it's because they are not good at trading noise. But then again nobody is good in trading. It's not like those big brokerage houses or funds don't lose money. LOL https://money.cnn.com/2017/07/18/in...-earnings-wall-street-banks/index.html?iid=EL I have seen value funds earning negative returns every single year and consider a 20% negative return one year as a good year. The fund manager even gave an interview on Morningstar advertising the fund. She finally resigned citing personal reasons after managing the fund for 23 years. LOL Two brokerage houses even went bankrupt after being in business for 100+ years, Lehman Brothers and Bears & Sterns. And look at Cathie Wood.

Comparing to them, we daytraders are doing ok, much better as a matter of fact.
 
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Dave ramsey noted 80% of IDT[individual day traders] lose money;
i did not know that many made money=20%.
The only 2 daytrading systems i saw that made money in hindsightLOL;
the better one by far= made more money with less daytrades.
But that was liquid markets +commissions , so overtrading because of no commissions may not be the best??:D:D
Value funds have underperformed growth funds for so long;
buyer beware of low priced junk, unless your name is mr Buffet, Goldblatt......:caution::caution:
 
easymon1 said:
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I always thought MACD is pronounced "M A C D", each letters individually. I never knew MACD is pronounced "Mac-D". LOL Learning something new every day.

But she's got the wrong MA for signals. It's not the 30-day MA you are supposed to look at; it's the 20-day MA. No wonder she was losing money. LOL
 
longandshort said:
Good paper from NBER reviewing the performance of daytraders and their role of providing noise to the market. Day Traders, Noise, and Cost of Immediacy | NBER

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View attachment 312130

(page break hence redundant)
View attachment 312131

key takeaways:
* aim not to be a noise trader -- trade on information or liquidity needs only (see another paper, the only game in town)
* unless you're an ULL HFT, information precedes price -- find it and assess it before making a trade
* trading the news is likely a fools errand
More...


Shouldn't this have been posted to the ES Journal?
 
TheDawn said:
I always thought MACD is pronounced "M A C D", each letters individually. I never knew MACD is pronounced "Mac-D". LOL Learning something new every day.

But she's got the wrong MA for signals. It's not the 30-day MA you are supposed to look at; it's the 20-day MA. No wonder she was losing money. LOL
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I think that's MCD, the hamburger king.
30 is midpoint of 10+ 50dma, learning something new every day.30 days or 31 may mean much more than a line with 30 on it, but most anything is possible.
Most people may never profit from Humble Trader, she adopted common sense[1] rule of not quitting your day job or [1b]not quitting your other business stream.
8:30-3 CST public market is part time @ best.
Hard to make part time when so many work full time; but most anything is possible.
 
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