This is what real trading is

[N Rothschild]

pits are my dream mate! woudl do anything to trade in them, cant stand sitting behind a pc all day!! i love being with the lads, i was a bouncer for fiver years before trading, i love a bit of uncouth behaviour lol

 

[N Rothschild]

It's funny because if you read half the sh*t on T2W you're led to believe that only failed traders teach others and write books...



Nice post BSD.

P.S. Speaking of what "real trading" is, I came across this book in Waterstones this morning...http://www.amazon.com/Greatest-Trad...=sr_1_1?ie=UTF8&s=books&qid=1269181915&sr=8-1

Paulson spots a bubble,
Does the fundamental groundwork, crunching numbers and analysing spreadsheets,
Comes to the conclusion the market is going to collapse,
Finds the money,
Works out the timing,
Bets the farm....

Makes $15 billion.

And the best part?

"Initially, Paulson and the others lost tens of millions of dollars as real estate and stocks continued to soar. Rather than back down, however, Paulson redoubled his bets, putting his hedge fund and his reputation on the line.

In the summer of 2007, the markets began to implode, bringing Paulson early profits, but also sparking efforts to rescue real estate and derail him. By year's end, though, John Paulson had pulled off the greatest trade in financial history, earning more than $15 billion for his firm--a figure that dwarfed George Soros's billion-dollar currency trade in 1992."

Which really backs up what I've said all along.

You don't make billions of dollars (and financial history) risking 2% and moving to breakeven when you are 50 pips up.

yup and like i have said you dont make billions day trading!

 

[BSD]

pits are my dream mate! woudl do anything to trade in them, cant stand sitting behind a pc all day!! i love being with the lads, i was a bouncer for fiver years before trading, i love a bit of uncouth behaviour lol

Haha having been a bouncer should help !!!

Hear that occasionaly an ear gets bitten off or you might get stabbed with pencils before your lunch break where you go chasing female clerks around bars after adequately powdering your nose with Bolivian Marching Powder.

 

[BSD]

Hmm chasing female clerks round bars sounds pretty good actually !!!

 

[Shakone]

You don't make billions of dollars (and financial history) risking 2% and moving to breakeven when you are 50 pips up.

I don't see how this applies much to retail traders.

Not many traders make billions in the first place, and I certainly don't know any retail ones. And those that do, usually already have billions in their account to trade from. There are some exceptions, but Paulson believed it was a sure thing, so he went in as heavily as he could. If you're a retail trader and you have what you believe is a sure thing, and can afford to wait months or years for it to come off, then fine. Most people's accounts aren't large enough to do that, or they need to pay rent and pay for living costs. As you pointed out, initially he lost 10's of millions of dollars. It could have been worse. So no point thinking about how to make billions, unless you can already withstand a drawdown of tens of millions.

Plus this was essentially one trade even though it involved many smaller ones. He was betting on something happening, if he was wrong he was screwed. You can't really make sensible generalisations from what was a one-off trade. The probability might have been 99%, the risk-reward might have been amazing, but to me there was still a chance it could have gone the other way first sufficiently to knock Paulson out.

As for moving stop to breakeven after 50 pips that ought to depend on your system. I don't see how you can say moving stop to break-even is not the way to trade. Maybe not the way to trader for YOUR entry system, but if I have a system whereby I know that if it comes back to entry after moving 30 pips away, then it is more likely to go even further against me, then my stop SHOULD be at breakeven.

 

[elitejets]

Even if you know everything you need to know about the trading systems, you can start and find new things every day. The real traders are checking the news and acting according,

David

Real traders are checking the news and seeing how the market is reacting to the news

"Listen to what the market is saying about others, not what others are saying about the market" Richard Wyckoff.

 

[trader_dante]

Real traders are checking the news...

The best trader I knew deliberately wore ear muffs so he couldn't hear the news and when big announcements were due could usually be found in the Kitchen but each to their own...

 

[trader_dante]

I don't see how this applies much to retail traders.

I didn't say it did!

I don't see how you can say moving stop to break-even is not the way to trade.

I didn't say this either. There is no "way to trade".

I like and agree with the rest of your post

 

[fugly]

It's funny because if you read half the sh*t on T2W you're led to believe that only failed traders teach others and write books...



Nice post BSD.

P.S. Speaking of what "real trading" is, I came across this book in Waterstones this morning...http://www.amazon.com/Greatest-Trad...=sr_1_1?ie=UTF8&s=books&qid=1269181915&sr=8-1

Paulson spots a bubble,
Does the fundamental groundwork, crunching numbers and analysing spreadsheets,
Comes to the conclusion the market is going to collapse,
Finds the money,
Works out the timing,
Bets the farm....

Makes $15 billion.

And the best part?

"Initially, Paulson and the others lost tens of millions of dollars as real estate and stocks continued to soar. Rather than back down, however, Paulson redoubled his bets, putting his hedge fund and his reputation on the line.

In the summer of 2007, the markets began to implode, bringing Paulson early profits, but also sparking efforts to rescue real estate and derail him. By year's end, though, John Paulson had pulled off the greatest trade in financial history, earning more than $15 billion for his firm--a figure that dwarfed George Soros's billion-dollar currency trade in 1992."

Which really backs up what I've said all along.

You don't make billions of dollars (and financial history) risking 2% and moving to breakeven when you are 50 pips up.

Paulson although not a pit trader is an alumnus of Stern School at NYU where he graduated top of his class and then went on to get an MBA from you know where lol....

Fact of the matter is guys like us the "oustsiders" without the ivy league contacts and privy to the inner circle will always be hanging around internet forums with hopes of one day building up our trading accounts to millions ..... fact of the matter is its never going to happen and thats the sad truth guys.

10 years on many of us will still be here with stars in our eyes posting about how some ivy leaguer/corporate hi flier made billions.

 

[N Rothschild]

Paulson although not a pit trader is an alumnus of Stern School at NYU where he graduated top of his class and then went on to get an MBA from you know where lol....

Fact of the matter is guys like us the "oustsiders" without the ivy league contacts and privy to the inner circle will always be hanging around internet forums with hopes of one day building up our trading accounts to millions ..... fact of the matter is its never going to happen and thats the sad truth guys.

10 years on many of us will still be here with stars in our eyes posting about how some ivy leaguer/corporate hi flier made billions.

perhaps true but still plenty of money to be made even if its not billions

 

[forker]

real trading is spending $99.95 per month with a "professional" telling you that his magical strategy will take you from zero to hero.. ( 6 month subscription gets you 6 free ebooks that tell you how to handle the stress)

 

[Beakytrader]

Fact of the matter is guys like us the "oustsiders" without the ivy league contacts and privy to the inner circle will always be hanging around internet forums with hopes of one day building up our trading accounts to millions ..... fact of the matter is its never going to happen and thats the sad truth guys.

Hey Fugly, i agree with rothchild, still gd money to be made.
On a serious note, i can't tell you how many people i watched get chewed up and spit out by the mkt, and i'm not just talking money.
Some of em were self induced, becoming alkies or cokeheads, as a way of dealing with the stress and demands. Others were not, losing their jobs after a bad run, crapping themselves how they were gonna pay that huge mortgage, support that wife with expensive tastes, pay for their kids private schooling. thats a different type of pressure.

I think sometimes people on these forums miss that they do have advantages. No boss, no targets set for you. You trade only when you want to trade,with the amount you feel comfortable with, and still get to have a life.

Ok the pits etc do have a certain allure to the outsider, and yep it's a great life if you're single and in your 20's. Not so appealing after 15 yrs of getting up at 5am, and working 70-80 hr weeks.

Pros and cons really, make some money, compound slowly, see how you go, and enjoy it.

 

[forker]

personally i dont give a crap about making millions. however, making enough to live a comfortable life without having to work for a boss.. that is certainly attainable.

 

[oildaytrader]

paulson is the example of how money still can be made...think how many people in America must have pointed out how stupid it was giving a mortgage for over half a million to a mexican immigrant with 6 kids and a low paying job, probably quite a lot of people realized what was going on. the only difference was that paulson...although i believe it was actually one of his analysts who did the fundamental and grunt work...had the capital to short the CDO index, take options on it , write CDSs or whatever.
There is always an inefficiency particularly for the retail investor who has no limits on what to buy and sell and has no one questioning, looking over their shoulder and second guessing their every move...read a peter lynch book and see how many limits fund managers have and you'll be glad to be retail. there is no inner circle in markets, that is how and why they work, everything is in the open...almost.

After the Bear stern Collapse , all the investment banking and hedge fund community were breathing and smelling a collapse, whilst the Govt Sachs kept lumbering more cdS with A I G ,despite knowing AIG didn't have the dough to honour them and AIG were still underwriting more.

It didn't take much intelligence figure out what to short , if you were in the right place at the right time.Its about sitting on Govt Sach's lap and attending the Wall street Barmitzvahs , more about who you know.

 

[Beakytrader]

everything is in the open...almost.[/QUOTE]

A teaser, can you explain?

 

[N Rothschild]

After the Bear stern Collapse , all the investment banking and hedge fund community were breathing and smelling a collapse, whilst the Govt Sachs kept lumbering more cdS with A I G ,despite knowing AIG didn't have the dough to honour them and AIG were still underwriting more.

It didn't take much intelligence figure out what to short , if you were in the right place at the right time.Its about sitting on Govt Sach's lap and attending the Wall street Barmitzvahs , more about who you know.

i thought it was all about trading breakouts of the range? tard

 

[sharky1]

This thread epitomizes how sh1te this forum is.

 

[oildaytrader]

i thought it was all about trading breakouts of the range? tard

That was just one method of trading which works very well on stocks .The rest of the trading is often dishonest with insider information etc .Robbing the U S taxpayer and fillingGovt coffers isn't really trading, the other type of trading based on sentiment is like using an indicator to predict a move.

We have seen so many mentors claiming to have that magic trading method ,its nothing new cause we have seen them do the rounds hundreds of times on forums.Maybe you have have a good trading method , maybe you don't ...nobody will ever know, but the statistics on forum mentors is like a cemetry crosses only of traders.

Why are there 95% losers if every mentor has such a wonderful method?

 

[N Rothschild]

im not a trading mentor? i thought about doing it to pass the time and now im not going to..get over it

 

[FXTrend240]

Been reading some of the posts here and some of soros' stuff from market wizards, about having 100% confidence in your trades....
if you only want to risk 2%,then surely the trade can't be that good? or maybe it's a 'meh' trade which is only 'worth' 2%. screw it, be a pig and pyramid your whole account and ride the trend bitches.