How do you guys deal with this?....Intraday trading = gambling | Traders Hideout


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How do you guys deal with this?....Intraday trading = gambling

  #24 (permalink)

Philadelphia PA
 
Trading Experience: Intermediate
Platform: Investor RT
Broker/Data: Stage5
Favorite Futures: FGBL
 
KatieD's Avatar
 
Posts: 7 since Aug 2016
Thanks: 3 given, 18 received


Bladesmith View Post
There are a number of very unfortunate public misconceptions about trading, and unfortunately they're being perpetuated by academic theory.

Both the Random Walk Hypothesis and the Efficient Markets Hypothesis generally assert that there can be no consistent edge in trading, except that which can be had by cheating (trading on inside information, front-running big accounts, etc.)

Millions of people are taught this in finance courses all around the world every year. As a result, there are huge segments of the public that genuinely believe any successful trader is either a cheat or a fluke. The fact that there are so few consistently profitable traders is taken as further evidence to support these beliefs.

So if you're an independent trader and you make money, then, to most people, it can only mean that you're a bad person. Whether a cheat or a a reckless gambler, it doesn't make much difference.

You can try to explain to them how this is not actually the case, but frankly, most of them don't even want to hear it. It would challenge their own self-righteousness judgments and would require them to change their mind. People don't like to be proven wrong. They don't like to change their mind.

So let them cling to their fantasies because, frankly, we need them. We profit from them.

It may sound perverse, but these are precisely the kinds of people we make money off every day in the markets. Their myths and superstitions provide the fuel for our trading strategies. The more, the better I say.

Oh my gosh.... YES! This was exactly the root of my concern. If I believe in anything, it is good old fashioned repeatable results that make up our reality as confirmed by the scientific method. It was the academics and industry professionals that would tell me these things that would concern me the most. I have such a strong respect for evidence based lines of thought. The skeptical financial analyst seemed to have it, while the retail day trader is more of a mystery.

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