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



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<SPAN 
class=377283907-17012003>Lionel,
Sorry, 
but I do not need a book on gaming theory to understand how an open market 
works.
<SPAN 
class=377283907-17012003> 
Lets 
say you own 100 shares of ABC. You wish to sell those shares for $50. In order 
for you to accomplish this the Market must match your Ask with a buyer. When 
this is accomplished you pass ownership of your shares to the buyer for $50. 
Zero Sum. The fact that you may have purchased these shares 10 years ago for $25 
is irrelevant to the Market. The fact that your brokerage firms charges you a 
fee to broker the transaction is irrelevant to the Market. Its function is only 
to match buyers to sellers. 
<SPAN 
class=377283907-17012003> 
Your 
trading account is certainly not a zero sum game , although it could be. You pay 
a fee to your brokerage for the opportunity to buy your 100 shares of ABC 10 
years ago in hopes that today they will be worth more than you paid for them. If 
your account is positive you were able to sell your shares for more than you 
paid for them, if your account is negative then........ don't give up your day 
job  :))
 Jayson 
<FONT face=Tahoma 
size=2>-----Original Message-----From: Lionel Issen 
[mailto:lissen@xxxxxxxxxxxxxx]Sent: Thursday, January 16, 2003 6:26 
PMTo: Metastockusers@xxxxxxxxxxxxxxxSubject: RE: 
[Metastockusers] Full time private trading... ... an unattainable 
dream?
No Jason.  
Since you have to pay commissions (an entry fee) it is not a zero sum 
game.  Just look up a book on game theory.
<FONT face=Arial 
size=2>Lionel
 


<FONT face=Tahoma 
size=2>-----Original Message-----From: Bob Jagow 
[mailto:bjagow@xxxxxxxxxxx] Sent: Thursday, January 16, 2003 4:12 
PMTo: Metastockusers@xxxxxxxxxxxxxxxSubject: RE: 
[Metastockusers] Full time private trading... ... an unattainable 
dream?
<FONT color=#000080 
size=2>Jason,
  Futures 
are zero sum [negative after commissions]; stocks aren't if you'll concede that 
buy-and-hold is viable over the long haul.
<FONT color=#000080 
size=2> 
<FONT color=#000080 
size=2>Bob

  <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: <A href="" 
  title=zaiguy@xxxxxxxxx>Nick Leong 
  <BLOCKQUOTE 
  >
    To: <A 
    href="" 
    title=Metastockusers@xxxxxxxxxxxxxxx>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
    
    
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