http://www.youtube.com/user/akprabhakar#p/u/1/Bz7gOwh0LnA Indian Market Outlook& Trading Discipline http://www.youtube.com/user/akprabhakar
First let me start with few points when you are trading 90% traders lose money then next question asked is then who profits? Broker by way of brokerage and Government by way of taxes rest are given to investors, interest paid on margin funding and arbitrage funds and hardly traders gain.
Then why do people trade?
Whenever a person enters stock market he normally makes money by default and many think it is our brilliance but it is our ignorance which gave money and when we try to use our brilliance we start to lose money. So people who made money start losing money and to recover the lost money people trade to recover faster.
Do traders recover their lost money?
I have never seen a rich trader but there are 400investor in Forbes 500 richest people and I have never seen a rich technical analyst which includes me also. Normally when there is a urgency or leverage in capital money is never made.
Below i have given a article written by Shaun Rein where he talks about advisor but he has failed to complete fully nor proved a point but good one to read for investor or traders.
Warren Buffett Is All Wrong About Goldman--
Shaun Rein,
Something is rotten on Wall Street.
http://www.forbes.com/2010/05/17/warren-buffett-goldman-sachs-leadership-citizenship-rein.html When I went in for a final-round interview with Smith Barney, a division of Citigroup, one of my interviewers asked me, "Where would you invest your clients' money?" I had read Benjamin Graham's The Intelligent Investor, so I happily responded that I would put some money in indexes, to take advantage of the low fees, and then apportion the rest based on my clients' time and risk horizons. The interviewer hunched over like a lion about to take a chunk out of gazelle and growled, "You are wrong. You put money wherever you will get the best commission. Most of your clients are stupid and don't know anything about the stock market. If the S&P 500 goes up 20% in a year, they probably don't know it. All you have to do is show a positive territory on the monthly statements." My expression made it clear I wondered how he could sleep at night. Needless to say, I got rejected that day.
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3 comments:
Dear i don't want to sound offensive but you need to Google "Jesse Lauriston Livermore" he was the richest trader the world went down in 1929 he made $100 million.
Yes i agree Jesse Livermore made Money and lost money also But way back in 1930, when there are 400Investor in Forbes 500Richest person in lastest list we miss one good trader today.
Jesse Livermore definitely is considered by far among the world's best trader. However, its also a sad fact that he went bankrupt trading and ultimately committed suicide. His trading philosophies are well know. However, as the saying goes practice what you preach is seldom forgotten by traders. People should learn from his errors (he was graceful enough to pen them and advise the correct methodology) but he had a major flaw which almost every trader has today and that it he was always over aggressive.
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