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May 5, 2006
Tech for daytraders reviewed, Fri., May 5, 2006, 6:30 PM
Forbes issued some Best of the Web stars today for technology sites used by "hyperactive traders" " the so-called day traders who do at least ten round trades a day.
There has been a serious shake-out in that industry " both among the tech firms and the day-trade order entry firms. Probably 80 pct of day traders lost capital during even the boom years of 1998-2000.
Sadly, everybody thought that good technology made good traders. NOT.
That's like saying you and me could get strapped into the cockpit of a fighter jet or Formula One race car and stay alive.
I believe there are some cultures in the world where trading is innate. By country, Lebanon would be one. China another. India yet another.
For the most part, however, good trading comes from awareness and skill. For 99 pct of us at least, these attributes must be learned.
The biggest misconception is that trading is about speed. It's not. It's about decisiveness, which as I say requires awareness and skill. Good technology (like a Ferrari F-1 car) needs a good driver. And the best drivers seek the best tchnology. Forbes says this is a place to look.
Posted by Posted by Bill Cara on May 5, 2006 06:30:47 PM | Category: Trader Tools
Discourse
I once posted here
http://www.billcara.com/archives/2006/04/the_bc_100_thur.html#more
about not only the the need for speed but the ability to apply that speed when needed.
Trading is innate in some cultures? How's that? A native understanding of the marketplace? I've been in India numerous times and sat around a ticker tape with a bunch of guys trading and listening to the conversation and about the only difference I saw between there and boardrooms in America was the intelligence of the participants. Indians are much smarter and more analytical, but still prone to trading emotion.
Posted by: omphalos ![[TypeKey Profile Page]](http://www.billcara.com/nav-commenters.gif)
at
May 6, 2006 7:18 AM [link]
Interesting. I am one of those hyperactive traders (1000-2000 trades a year). I have made a good living at it for years. And the point about decisiveness is valid. You do need to be hyper aware of trends and follow up to date industry news, but to the second timing is not nearly important as decisiveness and lack of sentimentality. If you are sentimental about a stock, don't trade it. You need to be able to dump a position as soon as it becomes needful. If you are sentimental "This is a good stock and will come back", you are lost. That and loyalty to a stock, a trend, an index, a position, a belief,that loyalty is misplaced. There is ONE measure of a succesful trader, short term capital gains. Loyalty, devotion and belief are handicaps.
Posted by: ErnestM at
May 7, 2006 10:54 PM [link]
Bill, have you ever considered some day to compile your blogs into a book. I think a lot of people would like to have a copy on hand.
I always have difficulty imagining how people can make so many trades in a single session. I just counnted my trades. I made 91 trades in total since May 1, 2003 when I started to trade stocks in North American.I am kind of slow, so I never doubt that I will be trapped in a bear market.Is it a training thing or just personality?
Have a good weekend.
Posted by: SmallCapFan![[TypeKey Profile Page]](http://www.billcara.com/nav-commenters.gif)
at
May 5, 2006 7:34 PM [link]