Who wins if everybody losses ?

[sirviente]

Hi !

Im trading futures markets, specifically the YM, i was wondering, who wins money when everybody looses their money ? And who pays the winners if everybody wins ? CBOT ?

Thanks
Ulises

 

[rols]

Hi !

Im trading futures markets, specifically the YM, i was wondering, who wins money when everybody looses their money ? And who pays the winners if everybody wins ? CBOT ?

Thanks
Ulises

I suggest you do a bit of reading before trading any more futures markets.

As to the question of who loses, it will be you if it isn't already.

Start here http://www.cbot.com/cbot/docs/56511.pdf

then

CBOT - Dow

and keep reading until you've inwardly digested and purged yourself...

 

[Dacamic]

Rols is absolutely correct.

Just as a quick note, for each YM contract there is both a seller and a buyer. Somewhat similar in nature to a playground teeter totter, one person's position will rise as the other one's fall.

 

[sirviente]

Thanks Rols and Dacamic,

That document helped me understand the 50 point price difference from YM and Dow. And thanks Dacamic for clearing out that simple concept.

So, in "theory", CBOT would only benefit by charging comissions on trades and not by trading the symbol itself, correct ?

Are the spread adjusts between Dow and YM done by institutional inverstors or CBOT ?

Thanks,
Ulises

 

[sirviente]

Hi Rols,

I forgot to mention, after reading the document, i did understand much better the foundation of the YM emini, but still can't find any correlation on why that knowledge would make me a succesful trader (i haven't lost badly yet, because i'm following an expert im usually breaking even).

Please kindly recommend me what more literature or things to learn so i can develop faster in this learning curve.

Thanks
Ulises

 

[rols]

Hi Rols,

I forgot to mention, after reading the document, i did understand much better the foundation of the YM emini, but still can't find any correlation on why that knowledge would make me a succesful trader (i haven't lost badly yet, because i'm following an expert im usually breaking even).

Please kindly recommend me what more literature or things to learn so i can develop faster in this learning curve.

Thanks
Ulises

See attached.

 

[Rhody Trader]

So, in "theory", CBOT would only benefit by charging comissions on trades and not by trading the symbol itself, correct ?

The CBOT makes money by charging fees on the transactions. Brokers charge commissions for executing trades on the exchange. Neither is on the other side of your trade. That's some other trader.

Are the spread adjusts between Dow and YM done by institutional inverstors or CBOT ?

The cash/futures spread is a function of several factors including Dow dividends and interest rates. It is not fixed, nor specifically determined by anyone.

 

[sirviente]

Hi GammaJammer,

Im so pathetic that if i would be trading myself, i would be doing worse than if i followed an expert. I have learned a lot from the expert actionly, like i have learned a lot from rols from just a few posts. But i just don't see how, if i dont learn from someone who is already succesful, is it possible to become succesful ? Out of pure mental prowess ?

On the other hand, i reviewed the documents posted, on strategies, and specially one video available on CBOT on "how to read tape" . I was amazed how much stress this man was taking, since he was near the pits trading, there was screaming all around. I want to be a succesful daytrader, but i don't want to have 50 cups of cofee and 200 cigars a day. Are all successful daytraders like this ?

Thanks
Ulises

 

[rols]

Hi GammaJammer,

Im so pathetic that if i would be trading myself, i would be doing worse than if i followed an expert. I have learned a lot from the expert actionly, like i have learned a lot from rols from just a few posts. But i just don't see how, if i dont learn from someone who is already succesful, is it possible to become succesful ? Out of pure mental prowess ?

On the other hand, i reviewed the documents posted, on strategies, and specially one video available on CBOT on "how to read tape" . I was amazed how much stress this man was taking, since he was near the pits trading, there was screaming all around. I want to be a succesful daytrader, but i don't want to have 50 cups of cofee and 200 cigars a day. Are all successful daytraders like this ?

Thanks
Ulises

The ONLY way to become successful is through your own mental prowess. Knowledge is power.

There are a thousand and one reasons why using an 'expert' or copying another trader's
methods will not make you successful. Sure you can learn from them but every trader is unique and as such must find his own system which is tailored to his personality, strengths and weaknesses.

For example every trader has their own varying amounts of the following;
1. Time
2. Amount of capital
3. Risk adversity
4. Discipline
5. Fear
6. Greed
7. Brains
8. Patience
9. Aptitude
10. Stupidity
11. Pride
12.Experience

I could on go ad finitum.

Do you see now?

As is frequently quoted;

"Trading is the hardest way in the world to make easy money."

 

[sirviente]

Hello Rols and GammaJammer,

Ahh thank you very much for your attention. I really appreciate your sincerity, and i can say that this resonates with my intuitions since the beginning. The funny thing is that for spiritual life the values are the opposite, mental prowess is the worst, and simple surrender to a bonafide guru is the best.

There is only one thing, and that is the stress levels. It feels good to win of course, but every time i see that in both sides winning or loosing, the stress levels are high, i've experienced several days, that my eyes even get dried up because of not blinking trying to watch every move.

Is there a point in time when the stress reduces ? Or is it just the way it is, and 100 cups of coffee is required? Is there such a thing as a relaxed trader, someone that is most of the time in good conciousness and not thinking numbers all day ?

Thanks
Ulises

 

[0007]

The ONLY way to become successful is through your own mental prowess. Knowledge is power.

There are a thousand and one reasons why using an 'expert' or copying another trader's
methods will not make you successful. Sure you can learn from them but every trader is unique and as such must find his own system which is tailored to his personality, strengths and weaknesses.

For example every trader has their own varying amounts of the following;
1. Time
2. Amount of capital
3. Risk adversity
4. Discipline
5. Fear
6. Greed
7. Brains
8. Patience
9. Aptitude
10. Stupidity
11. Pride
12.Experience

I could on go ad finitum.

Do you see now?

As is frequently quoted;

"Trading is the hardest way in the world to make easy money."

Very true. And it would seem appropriate in the recent trading TV series modelled on the Turtles.

 

[everyonerich]

Hi GammaJammer,

Im so pathetic that if i would be trading myself, i would be doing worse than if i followed an expert. I have learned a lot from the expert actionly, like i have learned a lot from rols from just a few posts. But i just don't see how, if i dont learn from someone who is already succesful, is it possible to become succesful ? Out of pure mental prowess ?

On the other hand, i reviewed the documents posted, on strategies, and specially one video available on CBOT on "how to read tape" . I was amazed how much stress this man was taking, since he was near the pits trading, there was screaming all around. I want to be a succesful daytrader, but i don't want to have 50 cups of cofee and 200 cigars a day. Are all successful daytraders like this ?

Thanks
Ulises

learn from me, i teach you how to trade exactly when you see it. no guessing at all..

 

[sirviente]

Yeah right....

Please Rols or GammaJammer reply to my previous post.

Thanks
Ulises

 

[everyonerich]

Hmmmm. Jury's very much still out on that one. Last time I checked you hadn't confirmed on the OandA thread whether you were Having a Giraffe or not.

Were you having a Giraffe? Think carefully - it's an important question, especially if you are going to offer trading tuition.

GJ

no.. i switched to currenex + MT4, as long as my money is safe and no funny things happen with the broker everything should be fine. Oanda just cant buy + sell at the same time

 

[rols]

everyonerich

Do you share everything that comes 'across in your mind'?

Very kind but really there's no need.

Is that the great thought for the day or do you have any other gems to add?

Talk about crude racial stereotyping.

Reminds me of a joke.

Q: What does an Australian man use as contraception?
A: His personality!

 

[arabianights]

Q: What does an Australian man use as contraception?
A: His personality!

 

[Jansinnet]

Most lose Few win.

Study

 

[Jansinnet]

Its like playing poker. Lose to the best but learn along the way.
Then you can play with someone's else's money

 

[Pacmanpth]

Are the spread adjusts between Dow and YM done by institutional inverstors or CBOT ?

As far as I know, the spread adjusts simply on natural market behavior. The people willing to bet that the future is going to go up more when it is above the actual index value will be less than if it were less than the index value. Other than that prices rise and fall like normal financial market goods. If there are more buyers than sellers at a given price, all of the sellers get knocked out, and some buyers start upping there bids to get shares because it's not saturated enough at the previous price level with sellers to satisfy everyone...market moves up as a result, and vice versa.