Monday, January 09, 2012

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.

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"There is the plain fool who does the wrong thing at all times anywhere, but there is the Wall Street fool who thinks he must trade all the time."J Livermore Manchester City FCl Crude Palm Oil

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From Dragons and Bulls by Stanley Kroll
Introduction and Foreword
The Importance of an Investment Strategy
5 The Art of War, by Sun Tau (circa 506 BC) and The Art of Trading Success (circa AD 1994)
That's the way you want to bet
Long-term v Short term trading
Technicals v Fundamentals
Perception v Reality
Part 1: Winners and Losers
Part 2: Winners and Losers
Sun Tzu: The Art of War
Those who tell don't know, those who know don't tell
Why there is no such thing as a "bad market"
The Secret to Trading Success
The Experts, do they know better?
Risk control and money management
Larry Hite: The Billion Dollar fund Manager
Systems Trading:Kroll's Suggested Method
Buy the Strength Sell the Weakness
Good advice
The 'good bets' business by Larry Hite
Don't lose your shirt
Ed Sykota's secret trend trading system