Blue Point Trading Market View – May 07, 2013
Hola Espagne !!! It’s good take a few days off and get away from the markets. Here in the thumbnail is a photo shot of the beach on the Costa Brava, Spain – nice? Sitting on the beach it also gives you a chance to reflect on our daily trading activities from a distance – couldn’t resistance just one post from my holiday.
I have been asked many times how many succesful traders does Blue Point Trading come across with its various trader programmes it conducts. The short answer is – not many. Why? The first reason is OPM (other people’s money). When traders trade on their own, they are much more forgiving than a trading company can be. A trading company wants to survive for the long-term on a managed basis. A trader taking massive draw-downs will hold “until right.” Very often this can work for a while, in the end they blow up and need to recapitalize their account. A trading company can not do this with OPM. When the trading company imposes a draw-down restriction or stops on a trader’s order – the trading performance of a trader who thinks they are a good trader, falls significantly. In short a retail trader is not approaching their trading like a business.
The other reason and the main point to this Blog post is, trader commitment. I would estimate that as much as 50% of the folks we encounter are simply not committed to becoming a good trader. They think trading is easy – after all its just clicking buy or sell, right? Often people who enroll in our trader programmes, after a few weeks and a couple of bad trades, they give up and disappear.
Others think they are top traders already. They remember their winners and think the losers don’t count and forget about them – all in all they think they are winners. This is true until they get in a trading programme and realize that both winners and losers count – and its for keeps. Still others simply don’t take the time and really try to understand the training we offer, do not do an adequate job on their Trade Plan, do not follow-up on its execution nor do the trading analysis as they have even indicated in their own Trade Plan. These traders simply are not doing their homework – no commitment.
The point here is that, trading is a hard job and takes time to get proficient, like any other job. There are no short cuts. There is no “Holy Grail” to trading. That’s why vacations to Spain are some times necessary, like any other job …
Daily Market View: (click here for the video)
Blue Point Trading Market View – May 07, 2013,