I think a very good reason why good traders will never think of working for others is pure and simple, they don't need to. There are people in the trading industry who claim they can make 30-40% per year and they think they're very good at it and they try to get employed by trading firms, just like one of those guys here: http://www.fat88trader.com/misc/12th-october#comments
Good traders only like to trade with their own money because they are proffesionals and good at trading. Those who trade other people's money cannot even overcome their own fear of risking their own money. They are only the amateurs in trading. If someone's say his fund makes 50% or 100% return per year, I'll just laugh it off. Good traders make those return in a month's time or so.
That Fat guy also mentioned Afact, anyway, it's going to be a dead society soon because most ex-pit locals cannot bring their success from the pit to the computer. For those who are successful, you guess it, they will just trade silently from their home PC and laugh at those silly Afact people for wasting time going to fuctions and attenting talks by smally fry traders.
Fiber +32 pips
TW +4 ticks
Hi,
ReplyDeleteI find your view very shortsighted and myopic.
1)If your trading fund is small, you can get 200% returns, when the trading fund's size grow, the returns in percantage wise is lesser BUT the overall profit is greater.
2) Good traders trade with their money but Superb Traders trade with their own as well as for others, eg, Soros, Buffett, Steve Cohen etc. Their returns are from 15-40%. It all depends on the sizes and risk of their fund.
3)Just as in any business, some failed, some will make it. Go to UOB, newedge, phillip and Ong Forst arcades and you will see many ex-pit locals trading via computer. You cant make it, doesnt mean others cant.
No offence, hope your view is not distorted by your hatred of the closure of the pit.