A woman's place is ... not on the trading desk

I do love the attitude around here.

"CEOs aren't any smarter, and don't work any harder than the rest of us."

"It's not like you have to be particularly smart to make money in the markets."

So, why aren't more people here working as a CEO, or a trader?

You might not have to be "particularly smart" to make money in the markets, but it sure does help -- especially if you're employing complicated trading strategies that employ options, or if you're betting on the price change between two markets, like say unleaded gas and heating oil. It really helps if you're writing the computer program that will signal you when to trade.

But, what it really takes is discipline, and humility. There are slogans like, "ride your winners, and cut your losses," or, "bulls and bears make money, but pigs get slaughtered." And there's some truth to them.

Most of your trades will lose money. They key isn't even when to get into a trade, it's when to get out. If you like a trade at one price, and buy a contract -- whether it's a stock, or commodity, of financial instrument -- what do you do when it goes against you? Do you admit you were wrong, get out, and take the loss? Or, do you like it even more at the lower price, and buy more -- because it's a bargain! Your average price is now lower.

Well, both answers might be right, but I've seen guys lose their homes employing the latter strategy.

What about when the trade goes in your favor? When do you get out? Do you take a quick profit, or let it ride, hoping to make a killing?

I once made four bucks a share on Intel. I don't think it had a single down day the month after I took my profit. My brother made the down payment on his first house off of the same trade.

I saw a friend lose a million dollars in paper profits on a coffee futures trade.

But, look, if you think it's easy, try it. It's never been easier to open a trading account, and to manage your own money. With contracts like the mini S&P, you can trade without a ton of money, and commissions are much lower than they used to be. Try it. Let us know how it works out.

 

"CEOs aren't any smarter, and don't work any harder than the rest of us."

Spluh?

 

"Spluh," meaning that's not an actual quote? Or it's terribly written? Or it's not the basic sentiment of many here?

 

I'm trying to figure out who said it or anything like it. I know I didn't.

 

Well, if I was putting words in anyone's mouth, I apologize, but I do get the sense that quite a few people here are of that opinion.

 

Is it harder than writing one-column heds?

 

My new favorite meme.

It's Old Economy Steve!

http://www.quickmeme.com/Old-Economy-Steven/popular/1/?upcoming

 

As a floor trader, trading NYSE index futures, you paid $2.00 a round turn (not a side) and scratch was either free, or $0.25. I can't remember.

At those kinds of commissions, you can trade a lot. But, for most people, the commissions alone can cost a lot.

I actually had one customer of mine buy a seat -- a NYFE seat was incredibly cheap at the time -- so she could trade at member rates (plus my commission for executing the trade).

 

I say you don't have to be genius to make money because it's easy to see enormous macro trends and react accordingly. E.G., the housing market crash and subsequent revival, both of which I and a zillion other people saw coming and made some money on.

Did "smart people" make more money off of such trends? Some of them, hell yeah. And some of them are in jail or lost everything. Relatedly, how did the London whale fare in the end?

I don't get your post because if you posit that 90 percent lose everything ... don't you think many of that 90 percent are really smart? Ergo, intelligence isn't necessarily correlative.