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Tom:
You said the magic word: WORK. You can make money day trading or position
trading. It takes a great deal of work. And trading $100 million dollars is more
work. The opportunities are colored by liquidity concerns. It's hard enough to
trade for a living each and every day. Now imagine you have 2000 people looking
over your shoulder as you trade, plus the media and the people that rate
CTAs--it ain't all it's cracked up to be.
But I wouldn't discourage anyone from being a trader. If you work hard and stay
on a even keel, you can make a great living as a trader.
Best,
Tim Morge
Tom Alexander wrote:
> There are people out there that successfully day trade. They are very, very
> rare. There are far more people successfully position trading.
>
> But what a great business! Can you think of any other business that can
> produce "experts" in such a short period of time? In many cases these
> self-appointed experts have less experience than their customers.
>
> Trading requires the same elements to be successful as any other business -
> hard work, study, CAPITAL, planning, perseverance, time,etc. There is no
> magic bullet, and there is no dispenser of magic bullets. If I do ever find
> one, believe me , you'll never know about it!
>
> Regards,
>
> Tom Alexander
>
> Alexander Trading ? Management
> ----- Original Message -----
>
> From: Jeff Kingery ?taotrader@xxxxxxxxxxx?
> To: ?realtraders@xxxxxxxxxxxxxxx?
> Sent: Wednesday, October 04, 2000 10:08 AM
> Subject: [RT] RE: Re: Richard Dennis and Aberration
>
> ? Bill E. wrote:
> ?
> ? ?...and if you take that very sensible logic
> ? ?and advice to its ultimate conclusion
> ? ?you end up day trading a single market!
> ?
> ? Well done, Bill! I loved the way you took the wisdom of Mike's excellent
> ? post and twisted it into yet another sales pitch for your book! However,
> ? although you refer to "logic," your statement is a "DNF," i.e. Does Not
> ? Follow (unless you've got books to sell!).
> ?
> ? The issues to which Mike referred will arise whether one trades a dozen
> ? markets from daily charts or a single market from tick charts. One big
> ? difference is that in the latter case it happens much more rapidly.
> Faster
> ? is not necessarily better. It will be better for some, and worse for
> ? others... in some cases much worse.
> ?
> ? One can make a strong case that slower is better for those who are
> "learning
> ? the ropes." It can be very difficult to fully evaluate, psychologically
> ? process and learn from each and every trade when you're making two or
> three
> ? trades a day, day after day. Also, a shorter time-frame generally yields
> ? smaller average trades, which give less margin for error. This can be
> very
> ? costly for a new trader, because the less practice you've had at trading,
> ? the more mistakes you're going to make. If you're new to trading it's
> quite
> ? possible that you will make mistakes on every single trade. Having time
> to
> ? learn from your mistakes before repeating them could save a lot of $$$,
> and
> ? perhaps a lot of grief.
> ?
> ? I'm sure we'll now hear from Bill that nothing could be further from the
> ? truth, and that day-trading the T-bonds is the best of all possible
> worlds,
> ? because he wants to sell his book. Not having seen his book I don't have
> ? any opinion on its value. However, these endless sales pitches about the
> ? "best" way to trade miss the point completely. There simply isn't any
> ? "best" way to trade. The question is not "What's the best way to trade?"
> ? but rather "What's the best way for ?me? to trade?" It's quite a
> different
> ? question.
> ?
> ? My guess is that for ?most? new traders, the best answer is ?not? going to
> ? be "Day-trading the T-bonds using a purely discretionary method."
> ?
> ? Your mileage may vary.
> ?
> ? Cheers,
> ?
> ? Jeff Kingery
> ?
> ?
> ?
> ? Mike wrote:
> ?
> ? ?snip?
> ?
> ? ? Remember, it is never enough to test a trading system,
> ? ? see a 30% drawdown and say "well, that's not too bad -
> ? ? I can handle that." Make sure you can handle that
> ? ? if you're in the drawdown for 6 months to a year,
> ? ? and you're required to continue to put trades in,
> ? ? day after day, with the result of most trades
> ? ? being losers. That will happen with EVERY TRADING SYSTEM
> ? ? at some point (although the drawdown duration will differ)
> ? ? - do you have the stomach to endure?
> ? ?
> ? ? Make absolutely sure you can say "yes" before you
> ? ? put a cent into any trading system and start trading.
> ? ? Just my two cents.
> ? ?
> ? ? Michael Strupp
> ? ? Chicago IL
> ?
> ?
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