Stock market collapse in October

[DimPrawn]

Basically it ain't rocket science and is better than letting some stupid spotty oik in the City manage for you.

That's the most intelligent thing you have ever said.

However, although it's fairly easy to choose what and when to buy I find figuring out when to sell a much harder decision.

[sasguru]

That's the most intelligent thing you have ever said.

However, although it's fairly easy to choose what and when to buy I find figuring out when to sell a much harder decision.

If you're buying for the long run (10 years), you shouldn't be selling that often.
Only if there's a buying oppo (like banks in march) and you need to juggle the funds around.

[SantaClaus]

Day trading is a mugs game. Most rational people undersatnd that the stock market is a random system at that level of time.
So while I have a long term portfolio of shares which I don't touch (stock markets usually go up), I have a "playing fund" (dating from the late 90s) that I amuse myself with. But make no mistake, I am prepared to lose everything in the playing fund - I don't fool myself that I can predict a random system, although I think you cna predict to some extent mass human psychology.

Day trading is a mugs game only for those people who dont understand it!

You are right that the outcome of any one trade is random.
However, if you are trading a system with an edge, and you apply that edge consistently, then over time (and a series of trades) you will win.

If you wait for the moment when your system dictates you have the edge, then you are the casino.

[DimPrawn]

Day trading is a mugs game only for those people who dont understand it!

You are right that the outcome of any one trade is random.
However, if you are trading system with an edge, and you apply that edge consistently, then over time (and a series of trades) you will win.

If you wait for the moment when your system dictates you have the edge, then you are the casino.

Are you using one the paid trading systems that for instance Money Week are touting in some of their advertisements?

Ones where you get an SMS and you must act on that trade and follow the system and over time you (hopefully) build up more wins than loses?

http://www.moneyweek.com/shop/premium-services.aspx

[SantaClaus]

Are you using one the paid trading systems that for instance Money Week are touting in some of their advertisements?

Ones where you get an SMS and you must act on that trade and follow the system and over time you (hopefully) build up more wins than loses?

http://www.moneyweek.com/shop/premium-services.aspx

no

[sasguru]

Day trading is a mugs game only for those people who dont understand it!

.

So you've convinced yourself that you really understand it?

Fact: 70% of day traders lose money over the long run (US SEC figures).

The other 30% are just likely to be lucky although you can have better odds in any casino.

You have many stages to go through, but acceptance seems to be still far off.

PS Read up some philosophy (epistemiology) and learn sone probability/statistics before making silly statments.

[SantaClaus]

So you've convinced yourself that you really understand it?

Fact: 70% of day traders lose money over the long run (US SEC figures).

The other 30% are just likely to be lucky although you can have better odds in any casino.

You have many stages to go through, but acceptance seems to be still far off.

PS Read up some philosophy (epistemiology) and learn sone probability/statistics before making silly statments.

Youre talking to someone who has done this for 5 years.

Go and read Mark Douglas -Trading In The Zone (a trading psychology book), and then compare it with what I have said.

[sasguru]

Youre talking to someone who has done this for 5 years.

Go and read Mark Douglas -Trading In The Zone (a trading psychology book), and then compare it with what I have said.

Fair enough.
I am savvy enough to know that most people fool themselves though.

If your answers to the following question is positive, I guess you're one of the lucky 30%:

What sort of net profit have you actually made over 5 years?

[Diestl]

Youre talking to someone who has done this for 5 years.

Go and read Mark Douglas -Trading In The Zone (a trading psychology book), and then compare it with what I have said.

Been through the whole trading thing, read many books, forums etc. The only way to make money day trading is by becoming a broker, or a Guru and charging people for the secret holy grail. All else is self delusion. You might be lucky the lcuky one who has a winning streak. The market is random there is no edge.

[sasguru]

Been through the whole trading thing, read many books, forums etc. The only way to make money day trading is by becoming a broker, or a Guru and charging people for the secret holy grail. All else is self delusion. You might be lucky the lcuky one who has a winning streak. The market is random there is no edge.

WHS.

The fact that our friend is reading pop psychology books, rather than cold hard maths books, suggests to me a need to reinforce self delusion.
Also whenever you see so many companies/individuals offering to you courses in the secrets of day-trading, my obvious riposte is if you know the secrets why not get rich yourself rather than selling a course.