Andy Swan » Recognize what trading REALLY is (and then dominate it)

Recognize what trading REALLY is (and then dominate it)

June 19, 2009 – 1:15 am

Trading: In and out of ownership in companies in a matter of days or even minutes. You really are adding no value to anything. In essence, you’re just trying to take money from someone else….in a legal, honorable and honest manner.

There is nothing wrong with that, but it’s important to recognize what you’re really doing.

This is why you need to be great at it if you’re going to do it. Constantly improving. Defending what is yours and aggressively capitalizing on the mistakes of others.

This is not a game for the lazy. If you’re looking for a lotto-ticket to fast money, you’re better off buying a lotto ticket.

If you’re looking for something that is a challenge, that you can improve at, and that you can compete to win at….you’re in the right place.

The greatest traders in the world have lost massive amounts of money so quickly it made them puke….literally….and they learned from it. They STILL buy out of greed and sell out of fear occasionally, and pay the price. They can be bested.

More importantly, they WILL make money.

Most importantly, YOU can become one of them….if you REALLY want to.

good trade

Keep these GOLDEN NUGGETS of trading coming they are dead on. I have been trading for 10 years and am always amazed that I can make mistakes every day and keep repeating them over and over again in different flavors. The only reason I stay around is that I NEVER EVER EVER average into a position that is a looser. Cannot say I have good stop losses plan but I never risk more than I can afford to loose and thus get to trade once again. Also I do not trade on margin due to my sloppy stop loss plan....this may help keep me in the game. Also on big winning years I took the money out of my trading account a did somthing real with the cash.

Andy you are so dead on with your feedback THANK you we retail day traders are suckers for getting bad data from market makers and the fools at CNBC and getting real TIPS can only help us EVENTUALLY HAVE A SEAT ON THE NYSE.

Cheers,

Good Trade

gregorylent

sums it up .. and the adding no value to anything puts the point on it ..

JakeGint

That's not true. Trading adds liquidity to a vital market and if you want to know the significance of liquidity, go price some houses in California's Inland Empire.

Liquidity improves cost of capital and low cost of capital (whether relative or real) makes the world go round.

You put earl in your engine, dontcha?

_______

Alamo

This is why gambling gives you an edge in trading. And I dont mean all ur chips on RED. Utilizing perception (or the reversal of), sentiment, recency bias, or information of other players at the table to make bets that have a higher probability of winning. Today's chartists are now offering all sorts of information. With the widespread adoption of TA, a chart paints the perception of other players at the table. This is an incredible weapon...just as you can see what someone wears at a table, how they handle their chips, or what facial tick they make, a chart reveals much about your opponents positioning. You are most definitely fighting against someone and not just playing ur screen. Play the player, not just your cards....holla!

andyswan

Exactamundo!