More experience, Less profits?

[Mike Kshemaraja]

I don't think so. An experienced trader, by definition, is a successful trader and therefore will not have what you suggest impregnated in their mind.



Again, I don't agree. Adapting to differing market conditions is part of the job but in the long term people are people and the market does not change as much as people make out imo.

Thank for you post, but I do not see the way you do.

To me an experience trader meaning a persona that have a very good knowledge of the market and how to operate it in its various forms is not necessary a successful trader, but can be just someone that is perennially struggling with it and if.

 

[tony1979]

Thank for you post, but I do not see the way you do.

To me an experience trader meaning a persona that have a very good knowledge of the market and how to operate it in its various forms is not necessary a successful trader, but can be just someone that is perennially struggling with it and if.

Listen to Liquid Validity and Toposwope, they're right and you're wrong. You want to make sure you start with correct beliefs, otherwise your journey is going to be a VERY long one.

 

[Liquid validity]

Sorry your post in my view is really poor and your concepts are very rigid confirming my questioning.

That rigidity lays mostly on wanted to show the world "to be right" rather of to see thing for what they really are.

Investment Bank Risk Management

The link above is a PDF about risk management failure.
Those failure's can be mitigated by making
risk management the top priority.

Why do you think the likes of Goldman Sachs, HSBC and so on weathered 2008 better than most,
whilst Bear Stearns and Lehman Brothers collapsed.
Risk management, plain and simple.

Why don't you write to the CEO's of HSBC and GS pointing out the error of their ways,
and then ask Richard Fuld for risk managment advice...

Do you think that investment banks are the only ones who need to control risk?
Are you immune from risk?
From where I'm standing you seem to think risk management is a loser's concept...

 

[Joey25]

Is it possible that more experienced traders (and I am not referring to age) have less probability to make good profits, due to the fact that the consequences of being kicked in the teeth have built strong concepts that are impregnated in their mind and difficult to shake off?

Those same concepts contain an underlying rigidity which is just the opposite of the nature of the market: fluidity, adaptability and constant revaluation.

I've been through a couple of cycles of a) being long beta in the late 90s and b) short vol in the early to mid 2000s.

You tend to get influenced by the times you trade in; anyone who started buying stocks during the dotcom bust probably chucked in the towel- likewise during the recent crisis. Those who were detemined to continue will have invariably cut back on leverage and learnt about time-varying volatility.

 

[4xma]

I think no matter what experiences a loser has, he is a loser until he realizes it and makes change on himself.

So if you are not making profit from the market, you need to change yourself to be a better trader. Then you will benefit from your trading experiences.

 

[Mike Kshemaraja]

Listen to Liquid Validity and Toposwope, they're right and you're wrong. You want to make sure you start with correct beliefs, otherwise your journey is going to be a VERY long one.

Start with correct beliefs? How do know how long I have been in the market, mr clown? I thing you should SHUT UP or go somewhere else if you are not able to hold a decent conversation, your posts are extremely raw and without explanation.

 

[Mike Kshemaraja]

I think no matter what experiences a loser has, he is a loser until he realizes it and makes change on himself.

So if you are not making profit from the market, you need to change yourself to be a better trader. Then you will benefit from your trading experiences.

Wise post.

 

[Mike Kshemaraja]

http://www.booz.com/media/uploads/Bringing-Back-Best-Practices-in-Risk-Management.pdf

Are you immune from risk?
From where I'm standing you seem to think risk management is a loser's concept...

That is not true, you are twisting things around, I never said that.

Also I am not a bank or an institutional investor, I am a retail trader. (Hallo?)

But the essence of my thread is that strong concepst like the one that most alleged "experience traders" holds: "to be right or my way of trading is the only way because bla bla bla" only limits our views to rip (rig and panic) serious profits.

I also know that this thread could be a provocation to the many alleged "experience traders" and can hurt their huge ego (I wonder why?), I am aware of that but is beside the point.

The purpose of the thread is to give to some traders a different perspective of how to view the market based on different understanding (if they wish) and not get stuck in an endless conversation of who has got a bigger nose.

I want to share my perception of the market the way I view it and to see if others could perceive it in a similar way, hoping to bring the conversation to a level which Moonrochet, Bbmac, Martingoul or 4xma have grasped the idea behind it with their input and hopefully bring it to a higher level, if possible.

I do not pretend that you to agree with me, I heard your view, I think I know where you stand and I like to move on.

If we think that we do not share the same views or cannot contribute good constructive ideas to the purpose of the thread, we are always free to not be part of it.

 

[new_trader]

Again, I don't agree. Adapting to differing market conditions is part of the job but in the long term people are people and the market does not change as much as people make out imo.

Correct. The more experience you have, the less the market changes.