Re: What are traders?
[ QUOTE ]
It kinda explains the fact that there are probably thousands of books on trading and poker out with authors telling people sound methods to make money on both subjects but only around 10% of people make money each year playing poker and trading stocks.
[/ QUOTE ]
Control over your mind is probably the most important factor in becomming a successful trader, and maybe also in poker.
Another important consideration is that trading, like poker, is not a zero sum game (like many brokerages trumpet) because of transactions costs/rake. This explains more why a tiny minority of traders/poker players make money consistently over the long haul.
I've tested many mechanical trading systems, some make lots of money, but after factoring transaction costs, slippage, financing etc., the reduced profits are not really worth all the effort.
When trading live, the awful emotional swings most traders experience further dramatically reduces their profitablility.
|