3% of traders are winners!

Kauri said:

And I always thought it was that 97% of failures were traders..

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Or in the army, take your pick.

Dont they say that 80% of new businesses fail in the first 5 years - so what's the difference between setting up a business and daytrading??

malachii

I play the game & I'm on the win side for the last few years.
The Bull has helped to make it easy most times.

There is one overwhelming theme you must address, this will be recurring with your trades.
When to pull out!
Will you use the % rule, or the two ticks down rule, maybe the support rule or other rules ~~ ?

Find your own rule and be flexible in its use.

You're in a contest to made money with many good traders plus the dopes

Don't follow dogma!!!!!!!!

Bob.

malachii said:

Dont they say that 80% of new businesses fail in the first 5 years - so what's the difference between setting up a business and daytrading??

malachii

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Hell of a lot -- with a business you have legal commitments - rent, outgoings, wages, insurance the list is endless for the unwary and on top of that your there EVERY day, profitable or not the doors must be open.
Start to look like you are actually going to make it and you will have every copycat in town starting to compete with you.
Old rule of thumb -- The Largest will be profitable, The next Breakeven and the Third will go bust --- so you have to be the BIGGEST in your area. -- tough call for a new business.


Trading on the other hand apart from the rules set by the ASX has no rules.
Your free do what you want to do --- problem is most of us can't handle the freedom.

But why the obsession with "Day Trading"?
when you can have around 5 short term trades running over 3 to 10 days on a continuous basis.
Day Trading has its place, but its certainly not the end game -- just part of it

Cheers

Sorry - wasn't specifically saying that daytrading was the answer - was more meaning that like operating a busines a large percentage will go broke while a small percentage will succeed. It seems to be about 80/20 whether we talk about day trading, running a business, swing trading, options trading or just about any occupation.

For example - I'm a commercial pilot. Every year just over 2000 commercial pilot licences are issued in Australia. Within 3 years only between 180 and 200 of these 2000 pilots are actually working in the industry as commercial pilots. Sure some will only have gotten their licence to "improve their skills" with no intention of doing it full time - but I'll bet there are a lot of traders out there who say exactly the same thing.

From my experience in life it always seems to come back to about 20% "success" rate. Even my trades - 20% are always the ones that make the real money. The rest break even, show a small profit or a small loss.

malachii

malachii said:

From my experience in life it always seems to come back to about 20% "success" rate. Even my trades - 20% are always the ones that make the real money. The rest break even, show a small profit or a small loss.

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The Pareto Principal in trading??? I don't believe it