Is trading as a 'Professinal' easy?
One of the best performing (in terms of profitability) locals is an old timer by the call sign AKT. When asked on a bit of advice on how to succeed and trade profitably, he remarked, "When you look at the market, who is making the money? No 1 No matter whether the trader make or lose, the exchange is at the apex, making the clearing fee, No 2 Next comes the broker, who will make the brokerage every time the trader makes a trade, win or lose, No 3 The service providers eg charting provicers are next to make the 'risk free profit'. If you understand this, then you will know to trade accordingly"
Poignant words, which to me means:
1 The odds are stacked against the trader from the outset.
2 Trading costs must be kept at as low a level as possible.
3 Don't overtrade. If you are subject to the pressure of a monthly volume quota, the odds are even more stacked against you, with forced trading just to make up the numbers.
Note that this is my personal opinion only.
Labels: commodities, fcpo, fkli, index futures
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