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Don't Steal Money from Day Traders Before They Lose It

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Re: Don't Steal Money from Day Traders Before They Lose It

#71

Post by gesman »

Trading is essentially an activity of showing numbers on a screen between funds deposits and funds withdrawal.

Traders are playing with numbers. No one actually expects the paper shares to be mailed after stock purchase.

Brokerage guarantees successful withdrawal event - and if not - then it's a present and clear fraud.

So if brokerage does not actually do anything, but properly updates the numbers on the screen according to security prices and commission schedules + guarantees proper handling of deposit/withdrawals - no one essentially cares?

Re: Don't Steal Money from Day Traders Before They Lose It

#72

Post by jliptzin »

oldandtired wrote: post #63
toephu2 wrote: post #48

Earlier quoted context omitted.

You're an individual retail day trader? Come back to us in 10 years and lets see if you are still making money. Or rather lets see if you can beat the S&P 500 for 10 years straight.

There are some important rules when doing day trading. 1). never stop studying about what is going on 2). practise, practise, practise (otherwise known as paper trading) before you ever lay down any coinage 3). don't let emotions ever take you away from whatever strategy your paper trading comes up with 4). whatever the environment you had when you did your paper trades, don't allow that to change when you finally pu…

I feel like it's a lot easier to just get a job or start a business that makes at least double the average successful day trader

Re: Don't Steal Money from Day Traders Before They Lose It

#73

Post by shittyadmin »

rckclmbr wrote: post #54
marketgod wrote: post #35

How much do you want to make per year? How much do you want to start with? What kind of return do you want each year on the initial investment? Believe it. I do make it consistently.

He is hawking his own service, his bio says it all. Arent there rules against this?

Anyone who sells services like this is obviously full of shit - if their ideas worked, they'd be making money off them, not selling them to other people.

Re: Don't Steal Money from Day Traders Before They Lose It

#74

Post by omgtehlion »

lend000 wrote: post #41
qwtel wrote: post #32

Earlier quoted context omitted.

I find it hard to believe there’s any day trader using any kind of information making a consistent profit. Isn’t everybody just dabbling around hoping to be in the 50% that outperform by chance? i’ve read about ed thorp pioneering statistical arbitrage in the 80s (?) which would fit the bill of “consistent returns”, but I doubt that there is any of that left close to 50 years later. I’m wondering what all these quant…

Allegedly 90% lose money on trades, but 50% of the capital makes/loses money in a given market window (however most of the winning capital is owned by a smaller number of players than the losing capital, mostly banks, quant funds, and creative/smart/disciplined/lucky indie traders).

It is not 50%, even if you are allowed to post passive orders (quotes) and pocket the spread (instead of loaing it) commissions will eat a lot.

Effectively, brokers and exchanges have almost infinite ROI: with small and fixed investments in infrastructure and marketing they take _percentage_ of your traded volume.

And shady trading rooms will screw you on commissions, spread, high margins on volatile instruments, and in very unlikely event if you manage to cash out more money than deposited, they will hold your account for "review of illicit trades".

But even on real and legal exchanges far less than 50% of capital wins, I assure you.

Re: Don't Steal Money from Day Traders Before They Lose It

#75

Post by paulie_a »

wallstquant wrote: post #55
paulie_a wrote: post #51

Earlier quoted context omitted.

The professional trader must be keeping the profits, I've day traded on a fairly slow volume and consistently get 200-1000 percent return year over year. Meanwhile the professional traders give me a meager 5-10 percent at most. For several years they didn't even beat inflation. Regardless of their access and tech they seem to suck at their jobs.

You must not be considering the total return of all your wealth just a limited subset. If you started with 10k and earned 300% (138.6% continuously compounded) then after 5 years you will have over $10mm. Wait another 3.3 years and you're a billionaire...

I was simply stating I have a substantially higher return than the pros. I've used that money for other purposes. for instance buying American airlines the day they went bankrupt allowed me to pay off a medical bill for a surprise medical emergency. But in that case it was literally 1000 percent return. I bought a bit of their stock the morning they went bankrupt. AMD is also an incredibly easy one to profit one. Wall Street might like to short sell on them to my benefit. From 3 dollars a share to 28 with incredibly predictable highs and lows for two decades. If I had the cash in college I could have been a millionaire by making ten trades a week on that one stock. The pros suck. I beat them year over year vs my managed retirement fund. It's pathetic.

Re: Don't Steal Money from Day Traders Before They Lose It

#76

Post by usaar333 »

> Nonko team decided to take advantage of this pattern by secretly providing some of Nonko’s customers with training accounts instead of live ones and simply pocketing those customers’ deposits.

Seems like a really dangerous move it they allowed trading on anything with low volume (options, smaller stocks). All it takes is one trader to notice their order never actually executed on the public market..

Re: Don't Steal Money from Day Traders Before They Lose It

#77

Post by speedplane »

Timmah wrote: post #68
toephu2 wrote: post #48

Earlier quoted context omitted.

You're an individual retail day trader? Come back to us in 10 years and lets see if you are still making money. Or rather lets see if you can beat the S&P 500 for 10 years straight.

I would happily make money for n-years and lose for one, provided the amount lost was a fraction of what I earned.

> I would happily make money for n-years and lose for one, provided the amount lost was a fraction of what I earned.

Your caveat there often swallows the rule. Many bet on the market and make big bucks only to lose multiples of it later.

Re: Don't Steal Money from Day Traders Before They Lose It

#78

Post by speedplane »

jliptzin wrote: post #72
oldandtired wrote: post #63

Earlier quoted context omitted.

There are some important rules when doing day trading. 1). never stop studying about what is going on 2). practise, practise, practise (otherwise known as paper trading) before you ever lay down any coinage 3). don't let emotions ever take you away from whatever strategy your paper trading comes up with 4). whatever the environment you had when you did your paper trades, don't allow that to change when you finally pu…

I feel like it's a lot easier to just get a job or start a business that makes at least double the average successful day trader

The way traders personally make money isn't by making good bets, it's by taking fees. If they make good bets, they get huge rewards, if they make bad bets, they get fired, but otherwise lose very little. So once you start betting with other people's money, you can do pretty well, it's just a matter of how long.

Re: Don't Steal Money from Day Traders Before They Lose It

#79

Post by Timmah »

toephu2 wrote: post #50
marketgod wrote: post #35

How much do you want to make per year? How much do you want to start with? What kind of return do you want each year on the initial investment? Believe it. I do make it consistently.

Anyone can make money in a bull market. I seriously doubt you have been beating the S&P 500 for the past 20 years day trading. and I don't care about your results if you've only been doing it and gotten lucky for the past 5 years.

Is money less green if it was made with luck vs "skill" ?

Re: Don't Steal Money from Day Traders Before They Lose It

#80

Post by dang »

marketgod wrote: post #30

What kind of returns did you get at the bank per year? What was the best traders returns at your location? Care to share? I ask because I think I can beat anyone.

We detached this subthread from https://news.ycombinator.com/item?id=17931545 and marked it off-topic.
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