On a recent visit to my old trading pad I was a witness to a very interesting discussion. Back in town after a considerable amount of time, I took some time to greet some of old trading veterans and trading buddies. What I encountered was amusing at the same time very illuminating.
A bunch of trading buddies had cornered a broker friend of mine. They were pestering him to allow them a sufficient leverage on their trades. They were asking him to allow the traders lot more time before the margin calls are made on them. The cited so many examples of how the brokers were "nurturing" the traders who are holding the positions in deep losses. They were pestering him to give more data, not the routine advisories from the brokers and the technical analysts, but the deep and inside information, so that clients can make profit. Sure profits!
Their argument was flawless. After all they were talking of the profitable idea to the broker. More the profits made by the clients, more the brokerage earned by the broker and not to mention the new clients the broker will make when the news of his "good" services are known in the market.
It was so amusing to me and so exasperating for the broker friend of mine in trying to make them understand the right way to trade, the proper way to manage the business of the brokerage. My friend tried to make the people understand for a while, then frustrated, just walked out. Understandable. I stayed back a bit more to see how the discussion progresses.
What I saw was one of the best ways of how NOT to trade and how NOT to think. The traders relying on the pathetic information to help them make money is - disgusting. The information circles work, I do not deny that, but relying on it solely to make money is simply - Lazy. None has ever got rich by that way to my knowledge, and I would rather bet none would ever be rich for long.
These traders went against one of the most fundamental tenets of the trading to keep your losses small. They were on the contrary asking broker to nurture their losses so that one day the position was bound to come in to profit or at least breakeven.
The traders on the discussion were not novice chaps as may be thought off. These were some of the successful traders, with years and years of experience in trading their own funds and handling money for their clients.
To me it was utterly un-understandable how such persons with so in-depth knowledge could fall into the trap of searching for the Holy Grail method of making money. I know of only one Holy Grail method, "Hard-Work--Persistence--Common sense". I have been unable to find any others, nor for long have I tried to look for any. I do not know if such a Xanadu exists. I am of the opinion it does not and would rather strengthen my fortress than look for Xanadu.
A bunch of trading buddies had cornered a broker friend of mine. They were pestering him to allow them a sufficient leverage on their trades. They were asking him to allow the traders lot more time before the margin calls are made on them. The cited so many examples of how the brokers were "nurturing" the traders who are holding the positions in deep losses. They were pestering him to give more data, not the routine advisories from the brokers and the technical analysts, but the deep and inside information, so that clients can make profit. Sure profits!
Their argument was flawless. After all they were talking of the profitable idea to the broker. More the profits made by the clients, more the brokerage earned by the broker and not to mention the new clients the broker will make when the news of his "good" services are known in the market.
It was so amusing to me and so exasperating for the broker friend of mine in trying to make them understand the right way to trade, the proper way to manage the business of the brokerage. My friend tried to make the people understand for a while, then frustrated, just walked out. Understandable. I stayed back a bit more to see how the discussion progresses.
What I saw was one of the best ways of how NOT to trade and how NOT to think. The traders relying on the pathetic information to help them make money is - disgusting. The information circles work, I do not deny that, but relying on it solely to make money is simply - Lazy. None has ever got rich by that way to my knowledge, and I would rather bet none would ever be rich for long.
These traders went against one of the most fundamental tenets of the trading to keep your losses small. They were on the contrary asking broker to nurture their losses so that one day the position was bound to come in to profit or at least breakeven.
The traders on the discussion were not novice chaps as may be thought off. These were some of the successful traders, with years and years of experience in trading their own funds and handling money for their clients.
To me it was utterly un-understandable how such persons with so in-depth knowledge could fall into the trap of searching for the Holy Grail method of making money. I know of only one Holy Grail method, "Hard-Work--Persistence--Common sense". I have been unable to find any others, nor for long have I tried to look for any. I do not know if such a Xanadu exists. I am of the opinion it does not and would rather strengthen my fortress than look for Xanadu.
:) FALKOR
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