Article Why Can?t Johnny and Jane Make Money in the Markets?

[T2W Bot]

There are literally thousands of traders out there who have brains, motivation, money (but not for long), big computers, trading software, newsletters, trading magazines, courses and more, but who can?t make money. I call them ?Johnny and Jane?, because they?re typical and engage in losing behaviors common to so many traders. The sad but true fact is that in spite of all the advances we have made, too many traders still fail. But why? Why is it that ?Johnny and Jane Can?t Make Money in the Markets? consistently or successfully? Here are some of my thoughts. I hope they help you in your trading plan. Hopefully you won?t end up like Johnny and Jane or if you?re already a Johnny or a Jane (or both) my thoughts will help you improve your results.
1. The average trader gets too much information
In my talks with traders I have discovered that the typical trader uses the following information sources almost daily or even many times daily: two or three newsletters, two or three...

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[Rhody Trader]

In this article, highly regarded author Jake Bernstein offers up some of his insight as to what leads traders in to trouble and how they can avoid going down the wrong road.

 

[SOCRATES]

Very good advice ~ very wise.

 

[JumpOff]

The only thing that didn't make sense to me was his statement about "Diversification of trading methods, markets and time frame is the best overall approach." His description of how to do this will probably overwhelm Jane and Johhny. I know it overwhelmed JO!

 

[timsk]

I know it overwhelmed JO!

Timsk too!
It's also contrary to the advice that most other trader experts / gurus usually dispense, which is to get to know, think, live and breathe one market in one timeframe before attempting to introduce another. Although the logic behind Jake's view is very sound, to achieve this level of diversification strikes me as being a task as monumental as climbing Everest on a sunny Sunday afternoon. There again, he also advises a contrarian approach and not doing what everyone else is doing . . .
Tim.

 

[nine]

An opportunity to be contrarian:

JB says that Johnny and Jane are victims of common thinking. Bull. You can do some very simple and old and common things in the markets and make money, plenty of it. You just have to execute well and control your behaviour well. IMO, many people are victims of the contrarianism that he advocates and as a result tend to take countertrend trades, scale in, follow hunches and do other contrarian things that lose money (being contrarians to the current trend).

Many other bits are good (common) sense.

The diversification section seems like an attempt to sell his GSS system. Oh great. Just what the beginner needs - a JB system.

"Come back to me now and then to see if you can learn anything new from me since I continue to grow and evolve as a trader." OK so here we have it. Yes this is just another Jake Bernstein sales pitch. Or is it only that I have an overactive spam detector? LOL. Your choice.

 

[chump]

good article and his views on diversity presuppose you have some size to trade in which case it's good advice.

 

[Pippppin]

Excellent-he seems to know his onions...

 

[FetteredChinos]

well written article, with a decent sense of humour..

"Fads come and go in the markets just as they do in real life. I still have a Nehru jacket"

I particularly liked that quote,

Jane

 

[barjon]

poor old johnny and jane - i'd better explore that deed poll business

one the most succesful guys i know has traded a single equity instrument (and only that) in all its different guises over the last 30 years - but then he's called fred.

good trading

jon

 

[FetteredChinos]

im trying to work out where i have seen Jake's photo before..

im thinking My Two Dad's, but i cant be sure....

 

[chump]

"I still have a Nehru jacket"

"I particularly liked that quote,"

I didn't ..I've only just bought one

 

[Mr. Charts]

Hello Jake - I'm sure you will be reading this comment thread.
An excellent article which carries the wisdom of time and understanding from the perspective of a very experienced trader.
It's only the third article in K Lab I've ever given 10 out of 10 for.
Well worth reading a second time to pick up on everything missed out on first time around.
I particularly liked para 3 and later, those vital words, "be humble..."
As for a "decent sense of humour", I saw Jake Bernstein speak at a seminar I spoke at myself last year and he was very funny, dry and ironic and always on the ball.
Richard

 

[JumpOff]

good article and his views on diversity presuppose you have some size to trade in which case it's good advice.

It also presupposes you got at least one instrument figured out and are ready and able to hold two or more of them in your brain at one time. Just thinking about that makes me want to find a cool muddy spot so I can go lie down. LOL
JO

 

[Blacktongue]

I thot it said Johnny and Jake..........

lol

 

[darktone]

im trying to work out where i have seen Jake's photo before..

On the net.. Under 'vendor' no doubt.

 

[Grey1]

There is nothing in this article to support the writer is not a loser himself. May I ask him to discuss MTD ( multiple time frame diversification ) on the BB if he thinks there are any edge gained by such a technique...

Grey

 

[FetteredChinos]

wb Grey. Good to see you posting on here again.

 

[jsd]

"While I believe that there is indeed logic to the markets, this logic is neither mythical or mystical. It is not metaphysical. Rather it is purely physical."

hmmm logic = laws of human thought, and those laws in themselves are non physical, how can it be purely physical ?

open to learning ..

jd

Have I missed something or is Jakes thinking fundamentally ignorant ?

 

[jimmy1jag]

im trying to work out where i have seen Jake's photo before..

im thinking My Two Dad's, but i cant be sure....

I'm thinking more Brian May


I like the article tho. There have been a couple of gooduns recently. (I'd better get off this board- it's hindering me!)