Day Trading

[lukemg]

Another thing - Many hedge funds operate on a 2 and 20 basis. That's 2 percent of your overall fund + 20% of any gains, they are coining it no matter which way it bounces !!!

[DaveB]

Another thing - Many hedge funds operate on a 2 and 20 basis. That's 2 percent of your overall fund + 20% of any gains, they are coining it no matter which way it bounces !!!

Brokers are the only ones who ever make money consistantly in this business. Wolf of Wall Street was an extreme example, but fundamnentally true.

[ChimpMaster]

Watched "Margin Call" last night as it was on BBC1 and I couldn't sleep. Not a good movie by any means but again shows how the public are always last to know about anything in the financial world and how the larger organisations can save themselves by screwing the individual investor.

[sirja]

2 very different things we are discussing here. One is a hedge funds, stuffed with the nearly brightest brains one could buy, managing billions of USD or EUR, using computers, algorithms etc we have zero chance to understand, trying to beat the market and other hedge funds. On the other hand we have us, situated leisurely at home in front of our dear laptop, managing our demo and small live accounts like pros that we are. Any strategy, any combination of indicators has been studied and analysed to death by those smart guys. If there is a way to predict market movements, those guys will find it, not us. We simply are too small and too stupid for that.

Still, even hedge funds struggle in the long term, this means market is so unpredictable and chaotic even the big guys have a little chance. This actually helps us, because it's a clear evidence success in this game lies not within indicators and patterns, but something else. We don't know what that is for sure, but we know discipline, patience, sound mind are parts of it. I suggest to everyone interested in trading to work on this "something else", there is our chance "to make it".

The most important aspect is longevity of our trading project. We see it is extremely difficult, even for professionals, to keep a steady income over time. Mistake many do is they look at a month's worth of demoing and say "geez, look at this sweet return I have achieved! I must be a pro!". No, you are not a pro, you are just lucky for now. It's a bit liek casino - if one puts some money on roulette and wins, he didn't find a way to beat the system, he just got lucky.

I realize my comments might be received as quite negative and discouraging by some, and I do apologise for it. I have seen (and have been one in my time) many people with bright eyes thinking they have found their way to the yachts and champagne, only to be bitterly dissapointed a few months later. Here I'm trying to warn you it's not all roses, reality is nowhere near as bright as they paint it in trading seminars.

As someone who has been trading/investing for a long time, i can only attest to the truth of your write up. The failure rate of Day traders is sufficiently high,to conclude that your better off just playing 'Black or Red' on a roulette table.

Ultimately there are a few ways to start to shift the balance back into our favor a bit. Trading Options is one such way, although this also comes with it's own risks, I've found it a lot more profitable than other forms of leveraged trading.

Then there's also investing in good old profitable companies for the long term. That approach hasn't been too bad for Mr Buffet and many others.

[BrilloPad]

Watched "Margin Call" last night as it was on BBC1 and I couldn't sleep. Not a good movie by any means but again shows how the public are always last to know about anything in the financial world and how the larger organisations can save themselves by screwing the individual investor.

There is always a fool in the market. If you don't know that, you are the fool.

[SimonMac]

Israeli spreadbetting firm Plus500's stock is bombing after freezing accounts - Business Insider

Not a user of the site, but a shareholder, relatively small position overall but still a four figure loss on the day

[sirja]

Israeli spreadbetting firm Plus500's stock is bombing after freezing accounts - Business Insider

Not a user of the site, but a shareholder, relatively small position overall but still a four figure loss on the day

Seems like it's not actually a problem with the financial health of the company,more an issue insufficiently robust compliance checks on new customers. If the checks are completed quickly and normal business resumes, the shares should bounce back. However if as a result of the checks serious irregularities come to light then that could lead to all kinds of issues, and further share prices drops.

[SimonMac]

Seems like it's not actually a problem with the financial health of the company,more an issue insufficiently robust compliance checks on new customers. If the checks are completed quickly and normal business resumes, the shares should bounce back. However if as a result of the checks serious irregularities come to light then that could lead to all kinds of issues, and further share prices drops.

Inversely the financial health of the company could have been proper up with slack governance meaning they lose their main income stream as things get tougher, look at Wonga

[DaveB]

Inversely the financial health of the company could have been proper up with slack governance meaning they lose their main income stream as things get tougher, look at Wonga

Will all depend on whether their customers desert them once they are able to get their funds back, or not.

If you dont think they will, could be worth getting in now in expectation of the price recovering once the issues are resolved.

[BrilloPad]

Seems like it's not actually a problem with the financial health of the company,more an issue insufficiently robust compliance checks on new customers. If the checks are completed quickly and normal business resumes, the shares should bounce back. However if as a result of the checks serious irregularities come to light then that could lead to all kinds of issues, and further share prices drops.

The reason they got so many customers was no checks. Those money launderers will now vanish.