Thursday, December 23, 2010
DayTrading Stocks and Digging for Gold
What happened back in the 1800's is no different than the people today trying to dig for gold in the stock market. Except now we have a more sophisticated style of selling the idea of riches. These prop shop firms sell the idea that daytrading can be made into a living. They know that day trading is a form of gambling and it can become addicting. But to keep you in the game and hopes of making a living out of doing this, they use terms related to sports to sell the idea that trading is a work in progress. They say things like "hit singles and doubles, don't try to hit homeruns all the time with your trades." The guys touting this profession are usually one of two people. The failed daytrader who wants to continue gambling because he's addicted so he sells the professionalism aspect of the field supplied by some venture capitalist with nice offices, computer screens, and sophisticated software. Or theirs the one time money making trader who made his money when the markets were going straight up in a line and because he didn't know much about trading then, he was able to retardedly make so much money that eventually he withdrew enough money out that he was able to live comfortably for years. This same trader realized that the market changed and what he was doing and what he knows now are much different. Buying and selling is not so easy anymore and he can't seem to just buy and hold and make tens of thousands of dollars by the end of the day (i.e. dot com bubble, housing bubble, gold boom, blue chip boom, mergers and acquisition boom. These were all periods in time when new lucky faces sprout up and are praised as the new great traders, but they secretly know inside that they had idea what they were doing for the most part, and were secretly wondering at the time of praise what was so hard about trading. But what these new traders end up realizing is that the more they thought they knew about trading, the worse their performance got. Any person who has played poker or blackjack or roulette in the casino's knows what I am talking about.) and must now generate an income if he wishes to survive and support his addicted gambling habits. So he starts up a proprietary firm and has training courses that teach everything that he and his partners think they understand about the market. I love the fact that they never teach you the real inner workings of the stock market or who the players are, or how and why it operates. From the inevitable stock runs ups that are complete scams to the legit forces that move the markets and stocks based on true fundamentals. And it's all because they don't know a damn thing because they themselves are brainwashed into thinking that the charts had once coincedentally worked and continue to study and think that because a pattern happened 2 times in the past that'll will work a third time in the future. They also don't realize that by the time a pattern is discovered its almost definitely too late. But the best part about these training courses is that there is not 1 verifiable source that they actually work. Its all a hoax, but you won't hear that from the aspiring new trader who believes in these mentors who have resumes that cover up the fact they use to make money but not as consistently anymore, hence the new business model. The new trader becomes brainwashed into deceiving himself that he or she is getting better by learning strategies and rules that keep them in the game longer as promised by the firm. It's like the man who use to play the 5 dollar slot machine and use to lose his money within 10 minutes but now discovered the 1 penny slot machine which can keep him busy for days.
Like I said, if you don't think it's a scam or your skeptical of what I'm saying, then please go right ahead. I'm speaking from experience and inside knowledge of the business. It's a little funny that people would believe that by trading and scalping stock all day that they are adding value to the economy, world, or even mankind. There is no get rich quick scheme, and playing in the stock market is not about indicators and chart patterns. If you want to learn the true inner workings of the market then stay tuned, this is the point of this blog. People don't want you to speak about this stuff because the big players are making a living through your ignorance.