Trading is a game of percentages which is similar to gambling. However, how is it that some people can succeed in trading, day trading included but, not others? It is more a function of one's ignorance and also, greed. "As the wall street saying goes, bulls make money, bears make money, pigs get slaughtered." Most newbie traders have a dream of being rich instantly, no doubt suckered in by promotions of gurus and their salesmen. Most traders ignore the most important factor to their success in the stockmarket which is risk management, it does not matter how much money you have in your account. Your job number 1 is protect your capital. Optionsellers.com James Cordier, Timothy Sykes, etc. learn that the hard way. If you do not have any risk management and position sizing in your trading plan, you might aswell go to Las Vegas and gamble over there. You might actually, get lucky and get rich overnight as you dream? Or you can lose all your monies? What is the difference?
You will lose more in the stock market than in a casino
- Thread starter derektrader
- Start date
GOT BUSINESS PLAN?
Here’s what failure rates look like broken down by year:
- First year: 21.5%
- Second year: 30%
- Fifth year: 50%
- 10th year: 70%
It's easy to take that idea of a random walk and that 95% of traders sale and just hand your money over to some financial advisor... Then to go around and call stocks gambling like at the casino. But the reality is that we take risks all throughout our life every day and if we try to avoid facing the fact that we are speculators in every aspect of our life we will never be successful. I really believe that the most important part of becoming a good speculator is just the emotional experience... The ability to not become a degen gambler addict but that goes from every aspect of your life
Huge difference between trading (positive expectation) vs casino (negative expectation). In a casino, you are guaranteed to lose all your monies. Trading you can actually, make monies instead. Again, subject to having risk management including, proper position sizing and the most important thing which is trading with the trend and not against it.
They looked at the ENTIRE country. The indice mini future trades 10 times more contract than the S&P e-mini.
Who are these magical "experienced traders"? Where do they live? In outer space?
There was 0 skill improvement with experience. And other dataset show the same thing.
I have heard of day gamblers that did make money, and of course not a single one still exists.
For example during the dot com bubble... They were basically just long volatility and long stocks in a bubble so they did have "success" and then they all vanished.
One of these clowns got mad and shot 13 people in Atlanta.
Every regulator says the same thing: every single day trader loses.
The few "experienced" gamblers are either at the extreme of a normal distribution, actually making longer term directional calls but taking tiny chunks out and therefore getting way smaller returns than they should be getting, or they are simply market makers.
Honestly I think the odds of making money day trading are 0% even if it is possible: People that are interested are complete idiots in the first place, and complete idiots cannot make money in the market, they're better suited to manual labor, or to singing, or to collecting foodstamps.
Really? There might be one or two but they are rare.
They are like unicorns. I've read about them, seen pictures of them, even seen videos of them running through the forest but I have never seen one in real life.
Did I mention the sasquatch.
what are you guys talking about? there are many firms that day trade, thousands upon
thousands of trades per day that make money all day everyday.
so there you have it, it can be done.
thousands of trades per day that make money all day everyday.
so there you have it, it can be done.
There are atleast, a couple of successful day traders on Elitetrader if you open your eyes wide enough. On Twitter, there is a housewife Jane Gallina who is Canadian I believe who teaches day trading too and Elytrades. I do not know either one and not affiliated with them. Only mentioning it to prove that there are successful day traders out there. There are others I am sure.
Your notions are completely FULL OF CRAP! Assuming you actually believe what you posted, you'd be better off looking for something other than the markets to achieve financial success.
What percentage became successful in other fields after leaving day trading?