Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

MrPaul

A Question...

Recommended Posts

....Does the growth in the number of users taking up electronic trading systems reflect that more people are becoming increasingly knowledgeable in studying financial market behavior and are therefore accessing trading platforms to execute well-planned investment decisions? Or is the technology the advent of a sophisticated gaming medium that is excused and justified as a display place of "investment" opportunity?...

 

 

What do you think? Why?

 

 

 

excerpt from "The Psychology of Electronic Trading"

Share this post


Link to post
Share on other sites

I dont think the number of new online accounts and the number of knowledgeable people working those new accounts go hand in hand...I do think that with so much electronic trading it is bringing a lot of bright people to the game, but more than that there's a lot of people with false hopes. I think that's the majority of it. The surge in electronic trading is bringing in a lot of fresh money into the markets for the seasoned pros to take advantage of, and then those youngin's don't have a lot left afterwards and end up quitting...just like always.

 

So....I guess I take door number 2?

Share this post


Link to post
Share on other sites

I also think that new traders tend to jump in a bull market. Alot of young professionals participated during the stock market bubble but most of them are all gone now.

 

Regardless, successful trading takes time and patience. Those who survive are the ones that have gained experience and the knowledge to trade. You will always find the new and clueless traders hoping to make that quick buck and going home with nothing but a wild and reckless story. It's the same with any game you play.

Share this post


Link to post
Share on other sites

I think throughout the decades since the beginning of century, new technologies bring in new players along with bull and bear markets. People come in with bull markets, then blow in bear markets. Some never come back, some stayed and make a living. But one common denominator is the human behavior factor: our nature has not changed in centuries and trading requires the survivors to do the most unnatural things to succeed.

 

The famous 5%-95% ratio (if it's true) remains constant so long as human nature don't change. It's no wonder chart pattern and price action in old charts look the same as they are now. If you look at dotcom bubbles, it's not the first bubble and won't be the last. History repeats itself because ... we're humans!!!

 

So technology won't change human nature. It may make it easier for us to trade but prevent us from screwing up the trades. Even with system trading, believe it or not, human intervention is very common (yep, dang human nature must have its hand in everything).

Share this post


Link to post
Share on other sites

I think that more and more people are simply falling victim to the new wave of marketing in the "get rich quick and easy" series. I don't think people are necessarily becoming more knowledgable about the markets, etc. (especially when even the ones that go obtain "knowledge" before entering the arena are being filled with a bunch of bs marketing garbage). I currently work in the revenue department of a large financial institution, and I have noticed alot of new attention being drawn to personal finance from large companies. For instance, the big rave right now is "check your FICO" or your "Beacon Score" from Equifax. It's just a big thing to get people to increase their debt and increase revenue for the banks, etc. I think this is very similar. The focus on trading and everything I believe is a way to generate income for hucksters peddling their snake oil, etc and brokers to increase commissions. This is all just my opinion of course, but I don't neccessarily think the quality of market knowledge is being increased per se. Back in the good old days, at least people had to do alot of legwork to really research and learn (not that I would know that from personal experience or anything) but nowadays it seems the sheer volume of knowledge and availability can increase the chances of "analysis paralysis" if anything. Sorry to ramble. I hope what I said made at least some sense. ha ha

Share this post


Link to post
Share on other sites

Reaver, you nailed it: more information can only distort the truth about the markets. So, the obstacles can only get higher, the learning curve can only increase with more and more indicators (supposedly TS itself has 2000 indicators), methods, strategies, auto systems, instruments, markets. Back to basics is the only method that works.

Share this post


Link to post
Share on other sites
People come in with bull markets, then blow in bear markets. Some never come back, some stayed and make a living.

 

...but more than that there's a lot of people with false hopes. I think that's the majority of it.

 

You will always find the new and clueless traders hoping to make that quick buck and going home with nothing but a wild and reckless story.

 

I think that more and more people are simply falling victim to the new wave of marketing in the "get rich quick and easy" series. I don't think people are necessarily becoming more knowledgable about the markets, etc.

 

These are my sentiments exactly.

Share this post


Link to post
Share on other sites

Yeah it's hard at first to separate the wheat from the chaff. Not knowing anything about the markets at all makes it easy to believe that there are some secvrets, etc to making it rich. I'm glad I used my brain when I got started and realized that there is no shortcut. I'm still learning, but then again, so is everyone. This forum makes an excellent sounding board and reality check for those caught in the mix of all the bs, etc out there.

Share this post


Link to post
Share on other sites

It's easy to get picked off by huckster marketers and scammers when you're new to the game, simply because you don't know any better. Kind of like a stranger giving a kid candy, same principle. I really think this forum serves as an excellent reality check and sounding board for those that would otherwise be surrounded by all the garbage out there.

Share this post


Link to post
Share on other sites
Its not bad that more people try or that more people fail.

 

Out of those potential failures will come the smaller number that succeed :)

 

The success and the failure of any trader is just because of himself - if he has chooses the right strategy he might have not lost. 99.9 % traders loose because of their own wrong strategy which Involves they emotions , greed etc.

Share this post


Link to post
Share on other sites
I think that more and more people are simply falling victim to the new wave of marketing in the "get rich quick and easy" series.

 

I agree. The other day I pulled down an old chart pattern trading book from my shelves - Curtis Arnold's PPS - trading system. At the back was a wallet in which an old diskette must once have slotted. The whole thing just seemed so incredibly dated compared to the slick online marketeers of today - how many John Carter wannabes are out there now? Hundreds.

 

Personally I wouldn't be suprised to see a new wave of marketing around algorithmic trading systems arising. Yes, I know that these have been a possibility for retail traders for a good while, but I don't think they've fully come of age yet. One of the platforms was advertising on Bloomberg the other day with a slogan of 'where robots are traders' with the promise of users being able to give simple english language instructions to build a strategy. Now why did I ever bother learning EL or Java (or B.A.S.I.C. back in 1992)!?!?

 

As well as being a very real potential way to make money, simple algorithmic trading is also a marketeer's dream for lazy traders. Having said which, so is the ego gratification of discretionary trading . . . That's enough from me, I think.

Share this post


Link to post
Share on other sites
...The surge in electronic trading is bringing in a lot of fresh money into the markets for the seasoned pros to take advantage of, and then those youngin's don't have a lot left afterwards and end up quitting...just like always...

 

Absolutely right...

 

People are trying to choose the easiest way to make money but at the end they are losing what they have...this will not change until they understand that trading is a concept that requires knowledge and experience...

 

Big sharks are sharing their profit with EA programmers (web scammers) now :rofl:

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • MNST Monster Beverage stock, top of range breakout above 60.45, from Stocks to Watch at https://stockconsultant.com/?MNST
    • there is no avoiding loses to be honest, its just how the market is. you win some and hopefully more, but u do lose some. 
    • Date: 11th July 2025.   Demand For Gold Rises As Trump Announces Tariffs!   Gold prices rose significantly throughout the week as investors took advantage of the 2.50% lower entry level. Investors also return to the safe-haven asset as the US trade policy continues to escalate. As a result, investors are taking a more dovish tone. The ‘risk-off’ appetite is also something which can be seen within the stock market. The NASDAQ on Thursday took a 0.90% dive within only 30 minutes.   Trade Tensions Escalate President Trump has been teasing with new tariffs throughout the week. However, the tariffs were confirmed on Thursday. A 35% tariff on Canadian imports starting August 1st, along with 50% tariffs on copper and goods from Brazil. Some experts are advising that Brazil has been specifically targeted due to its association with the BRICS.   However, the President has not directly associated the tariffs with BRICS yet. According to President Trump, Brazil is targeting US technology companies and carrying out a ‘witch hunt’against former Brazilian President Jair Bolsonaro, a close ally who is currently facing prosecution for allegedly attempting to overturn the 2022 Brazilian election.   Although Brazil is one of the largest and fastest-growing economies in the Americas, it is not the main concern for investors. Investors are more concerned about Tariffs on Canada. The White House said it will impose a 35% tariff on Canadian imports, effective August 1st, raised from the earlier 25% rate. This covers most goods, with exceptions under USMCA and exemptions for Canadian companies producing within the US.   It is also vital for investors to note that Canada is among the US;’s top 3 trading partners. The increase was justified by Trump citing issues like the trade deficit, Canada’s handling of fentanyl trafficking, and perceived unfair trade practices.   The President is also threatening new measures against the EU. These moves caused US and European stock futures to fall nearly 1%, while the Dollar rose and commodity prices saw small gains. However, the main benefactor was Silver and Gold, which are the two best-performing metals of the day.   How Will The Fed Impact Gold? The FOMC indicated that the number of members warming up to the idea of interest rate cuts is increasing. If the Fed takes a dovish tone, the price of Gold may further rise. In the meantime, the President pushing for a 3% rate cut sparked talk of a more dovish Fed nominee next year and raised worries about future inflation.   Meanwhile, jobless claims dropped for the fourth straight week, coming in better than expected and supporting the view that the labour market remains strong after last week’s solid payroll report. Markets still expect two rate cuts this year, but rate futures show most investors see no change at the next Fed meeting. Gold is expected to finish the week mostly flat.       Gold 15-Minute Chart     If the price of Gold increases above $3,337.50, buy signals are likely to materialise again. However, the price is currently retracing, meaning traders are likely to wait for regained momentum before entering further buy trades. According to HSBC, they expect an average price of $3,215 in 2025 (up from $3,015) and $3,125 in 2026, with projections showing a volatile range between $3,100 and $3,600   Key Takeaway Points: Gold Rises on Safe-Haven Demand. Gold gained as investors reacted to rising trade tensions and market volatility. Canada Tariffs Spark Concern. A 35% tariff on Canadian imports drew attention due to Canada’s key trade role. Fed Dovish Shift Supports Gold. Growing expectations of rate cuts and Trump’s push for a 3% cut boosted the gold outlook. Gold Eyes Breakout Above $3,337.5. Price is consolidating; a move above $3,337.50 could trigger new buy signals. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Back in the early 2000s, Netflix mailed DVDs to subscribers.   It wasn’t sexy—but it was smart. No late fees. No driving to Blockbuster.   People subscribed because they were lazy. Investors bought the stock because they realized everyone else is lazy too.   Those who saw the future in that red envelope? They could’ve caught a 10,000%+ move.   Another story…   Back in the mid-2000s, Amazon launched Prime.   It wasn’t flashy—but it was fast.   Free two-day shipping. No minimums. No hassle.   People subscribed because they were impatient. Investors bought the stock because they realized everyone hates waiting.   Those who saw the future in that speedy little yellow button? They could’ve caught another 10,000%+ move.   Finally…   Back in 2011, Bitcoin was trading under $10.   It wasn’t regulated—but it worked.   No bank. No middleman. Just wallet to wallet.   People used it to send money. Investors bought it because they saw the potential.   Those who saw something glimmering in that strange orange coin? They could’ve caught a 100,000%+ move.   The people who made those calls weren’t fortune tellers. They just noticed something simple before others did.   A better way. A quiet shift. A small edge. An asymmetric bet.   The red envelope fixed late fees. The yellow button fixed waiting. The orange coin gave billions a choice.   Of course, these types of gains are rare. And they happen only once in a blue moon. That’s exactly why it’s important to notice when the conditions start to look familiar.   Not after the move. Not once it's on CNBC. But in the quiet build-up— before the surface breaks.   Enter the Blue Button Please read more here: https://altucherconfidential.com/posts/netflix-amazon-bitcoin-blue  Profits from free accurate cryptos signals: https://www.predictmag.com/ 
    • What These Attacks Look Like There are several ways you could get hacked. And the threats compound by the day.   Here’s a quick rundown:   Phishing: Fake emails from your “bank.” Click the link, give your password—game over.   Ransomware: Malware that locks your files and demands crypto. Pay up, or it’s gone.   DDoS: Overwhelm a website with traffic until it crashes. Like 10,000 bots blocking the door. Often used by nations.   Man-in-the-Middle: Hackers intercept your messages on public WiFi and read or change them.   Social Engineering: Hackers pose as IT or drop infected USB drives labeled “Payroll.”   You don’t need to be “important” to be a target.   You just need to be online.   What You Can Do (Without Buying a Bunker) You don’t have to be tech-savvy.   You just need to stop being low-hanging fruit.   Here’s how:   Use a YubiKey (physical passkey device) or Authenticator app – Ditch text message 2FA. SIM swaps are real. Hackers often have people on the inside at telecom companies.   Use a password manager (with Yubikey) – One unique password per account. Stop using your dog’s name.   Update your devices – Those annoying updates patch real security holes. Use them.   Back up your files – If ransomware hits, you don’t want your important documents held hostage.   Avoid public WiFi for sensitive stuff – Or use a VPN.   Think before you click – Emails that feel “urgent” are often fake. Go to the websites manually for confirmation.   Consider Starlink in case the internet goes down – I think it’s time for me to make the leap. Don’t Panic. Prepare. (Then Invest.)   I spent an hour in that basement bar reading about cyberattacks—and watching real-world systems fall apart like dominos.   The internet going down used to be an inconvenience. Now, it’s a warning.   Cyberwar isn’t coming. It’s here.   And the next time your internet goes out, it might not just be your router.   Don’t panic. Prepare.   And maybe keep a backup plan in your back pocket. Like a local basement bar with good bourbon—and working WiFi.   As usual, we’re on the lookout for more opportunities in cybersecurity. Stay tuned.   Author: Chris Campbell (AltucherConfidential) Profits from free accurate cryptos signals: https://www.predictmag.com/   
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.