[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

RE: [Metastockusers] Full time private trading... ... an unattainable dream?



PureBytes Links

Trading Reference Links




 In a zero sum 
game the amount of money put in equals the money going out.  In the stock 
market, the money put in is more than the money coming 
out.  Whether you consider the costs as trivial does not mean that 
they don't exist.  These costs mean that the game in negative 
sum. There are commissions on each trade, and there are other costs, 
like software, computers, interest charges, subscriptions for 
data that must be paid. Too frequent trading can eat up all the profits 
too. 
<FONT face=Arial 
size=2> 
While I agree with 
your second paragraph, it is changing the subject.
<FONT face=Arial 
size=2> 
<FONT face=Arial 
size=2>Lionel
 
 
 

<FONT face=Tahoma 
size=2>-----Original Message-----From: Jayson 
[mailto:jcasavant@xxxxxxxxxxxx] Sent: Thursday, January 16, 2003 
11:25 AMTo: Metastockusers@xxxxxxxxxxxxxxxSubject: RE: 
[Metastockusers] Full time private trading... ... an unattainable 
dream?
<SPAN 
class=450521617-16012003>Lionel,
<SPAN 
class=450521617-16012003> 
Only 
in the sense that you must pay commission on your trades. The market is in fact 
zero sum in that there must be a buyer for every seller. That is not to say that 
an individual can not make money, only that for every $ he makes there is a 
corresponding loser somewhere else. 
<SPAN 
class=450521617-16012003> 
An 
individual has many advantages over the large institutions and hedge fund 
managers. He/she can turn on a dime. Selling 1000 shares of CSCO will not drive 
the market the way an institutional sell of 1 million or 10  million shares 
can. This is exactly where the individual can make money. By learning to spot 
the signals that the big guys are trying to load or unload large volumes of 
shares in a systematic way the small guy can take his piece out of the middle of 
the move. If the small guy is trying to make money picking the big turns he will 
likely come out short in the end but by taking advantage of the overall 
direction the big money is currently steering the price he can very successfully 
come out on top.....
 Jayson 
<FONT face=Tahoma 
size=2>-----Original Message-----From: Lionel Issen 
[mailto:lissen@xxxxxxxxxxxxxx]Sent: Thursday, January 16, 2003 11:35 
AMTo: Metastockusers@xxxxxxxxxxxxxxxSubject: RE: 
[Metastockusers] Full time private trading... ... an unattainable 
dream?
The stock market is 
not a zero-sum game, it is a negative sum game just like the pari-mutuel race 
track. <FONT face=Arial 
size=2>The money taken out is less than the money put in.  This doesn't 
mean that everyone must lose, but it does mean that to win you must be 
alert.
<FONT face=Arial 
size=2> 
<FONT face=Arial 
size=2>Lionel
 
 


<FONT face=Tahoma 
size=2>-----Original Message-----From: Dan [mailto:amarones@xxxxxxx] 
Sent: Thursday, January 16, 2003 9:35 AMTo: 
Metastockusers@xxxxxxxxxxxxxxxSubject: Re: [Metastockusers] Full time 
private trading... ... an unattainable dream?
Nick- 
 
I have been trading off and on for about 10 years, 
both privately and as a CTA for a time. I am definatley on the short end of the 
net zero game as a whole, but my dream of being a full time trader has been 
revitalized and is on the way to being realized in the last year.
Who knows, I may blow up the account and have to 
start over again at some point,  but my experience in trading tells me I've 
finally found what works for me. I think that is the key - what works for 
each trader. I spent what feels like a lifetime with everything in the trading 
world that didn't work for me.
I disagree that one must switch markets to be 
consistently successful. If any market has the characteristics of orderly 
accumulation and distribution and sufficient liquidity, then it can 
be consistently traded.The markets on the U.S. futures and equity exchanges 
offer too many issues and markets that exhibit these characteristics for me to 
consider trading more than just the cream of the crop. I don't think it is 
necessary to switch from domestic to foreign markets and from equities to 
futures to be successful - there are so many market personalities within each of 
those sectors, that the opportunities are far more than I have the capacity to 
consider.
For me it would be ludicrous to ignore either the 
long or short side of the market because it would mean giving up half the 
potential profits. I use a 100% mechanical system developed with Metastock that 
averages 76% winners. It's not perfect, but it backtested an average 
gain of 240% annually over the last 2 years and is perfoming as advertised 
in real trading.
For me the clouds have lifted and I can finally see 
the dream of being a full time successful trader on the way to being 
realized.
 
Dan Edens
 
 
 
 
From: Nick 
Leong 
<BLOCKQUOTE 
>
  To: <A 
  title=Metastockusers@xxxxxxxxxxxxxxx 
  href="">Metastockusers@xxxxxxxxxxxxxxx 
  
  Sent: Wednesday, January 15, 2003 4:29 
  PM
  Subject: [Metastockusers] Full time 
  private trading... ... an unattainable dream?
  
   Hi group,
  I&#8217;ve been reading some articles 
  about the hedge fund management industry and how most funds sustained losses 
  over the past 2 years especially since Sept 11 and the US corporate scandal. 
  This is coupled with a statistic I read that most novice traders leave the 
  trading arena after about 3 months. These events really got me thinking&#8230; &#8230; is 
  it really possible for one to be a full time private trader?
  I&#8217;ve been trading privately for 
  about 4 years not and like most of you I&#8217;ve had my ups and downs. I am a firm 
  believer that trading the market is a zero sum game. Someone MUST lose in 
  order for me to make a gain. However, the law of averages dictates that it is 
  just not possible for anyone to be winning all the time. That being the case, 
  is it actually possible for anyone to be a full time private trader (i.e. 
  trade using only his own money and make a living out of it)?
  The only possible way for one to 
  make money is possibly to be engaged in the right market at the right time, 
  e.g. to switch between the equities/futures/derivatives markets or switch 
  between the US/Europe/Asian markets. But we must also remember that a private 
  trader does not have the resources or the mental capacity to handle so much 
  information or research at a single time. What option would be left then? To 
  specialise and trade only in specific markets and sit things out when 
  everything is not going well? Do not forget that a downturn in the market can 
  last for years.
  We can go into the nitty gritty 
  and say that we must set up stops to prevent losses, but I&#8217;m sure most of you 
  have been in the situation where you were stopped out too early or you had 
  given so much room before being stopped out that you suffered a painful loss. 
  Don&#8217;t get me wrong, I believe that trading and investing is an art and there 
  is no one mechanical way of getting the right results. Ultimately, we are all 
  looking for one thing&#8230; &#8230;PROFITS. However, I have come under the increasing 
  impression that the odds are severely stacked against the private 
  trader.
  I look forward to hearing from you 
  guys on this matter.
  Thanks.
  <SPAN lang=EN-GB 
  >Nick 
  Leong
  
  
  Do you Yahoo!?<A 
  href="">Yahoo! Mail 
  Plus - Powerful. Affordable. <A 
  href="">Sign up 
  now To unsubscribe from this group, send an email 
  to:Metastockusers-unsubscribe@xxxxxxxxxxxYour use 
  of Yahoo! Groups is subject to the <A 
  href="">Yahoo! Terms of Service. 
To unsubscribe from this group, send an email 
to:Metastockusers-unsubscribe@xxxxxxxxxxxYour use 
of Yahoo! Groups is subject to the <A 
href="">Yahoo! Terms of Service. 
To unsubscribe from this group, send an email 
to:Metastockusers-unsubscribe@xxxxxxxxxxxYour use 
of Yahoo! Groups is subject to the <A 
href="">Yahoo! Terms of Service. 
To 
unsubscribe from this group, send an email 
to:Metastockusers-unsubscribe@xxxxxxxxxxxYour use 
of Yahoo! Groups is subject to the <A 
href="">Yahoo! Terms of Service. 







Yahoo! Groups Sponsor


  ADVERTISEMENT









To unsubscribe from this group, send an email to:
Metastockusers-unsubscribe@xxxxxxxxxxx





Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.