80% of traders lose money in the stock market?

[VielGeld]

I don't think you can really answer this question.

Let's say a bank is selling 5000 contracts of X instrument to hedge exposure. 5000 buyers come in and buy one contract each. You suddenly have a very skewed result whether the bank wins or loses on the position.

I also doubt that there are as few profitable traders as is said to be, otherwise there wouldn't be the kind of volume you see in any kind of market. Forex trades trillions per day, fer christsake.

 

[mightymayesy]

Do you have something better to do to waste your time? Why do you care anyway? Try to be in the 20% that wins. In every business area, whether it is restaurant, shop, or any other business, 80% eventually close down.

So what's new?

The universal (and wrong) 80:20 rule. Epic fail...

I have not met a successful long term day trader yet who;

a) has made 1 pip profit;
b) has not got an incoherent mix match of "financial knowledge" from google and subsequently think they "know everything";
c) appreciates that you can't "feel" a trade...

The only people who make money consistently from the markets are the guys on there or four PM + bonus (or what's left of them).

I think that less than the top 1% of like-minded people are profitable long term.

S.

 

[new_trader]

Talk me thru the impact of quantitative easing, and the rationale for that please. Especially extrapolating how the treasury and bank of england are profit motivated. Following that, please expand on how your knowledge of game theory brings you to the extraordinary conclusion that a game where one side is motivated by profit whilst another is not, is zero sum. Once you have educated me on these points I will happily re-instruct our pupils at Futex

Zero sum is a mathematical concept. If the total gains of the participants are added up, and the total losses are subtracted, they will sum to zero, who cares about their motivation? Futures is a zero sum game because wealth is never created, it is just transferred from one participant to another.

 

[FUTEX]

Zero sum is a mathematical concept. If the total gains of the participants are added up, and the total losses are subtracted, they will sum to zero, who cares about their motivation? Futures is a zero sum game because wealth is never created, it is just transferred from one participant to another.

Unfortunately not true. Although measured using mathematical formulae, Game Theory that is, what is important is the "goals" of the participants. If the goals are different, then both can win, even if one party has made a financial profit, whilst one party has made a financial loss.