It's impossible for the AVERAGE derivatives trader to make money...FACT. It's a zero-sum game....BUT one must still deduct all expenses, such as slippage, commission, spreads and taxes. Result is that only the top 5-10% of traders will probably make money (plenty of it)consistently. The average long term ALSI investor has managed a before expenses (taxes) of 18% over the last 20 tears... FACT. Of course if one believes one will become one of the TOP traders, then one is sure to out perform the AVERAGE long term investor....BIG IF though.
Zero sum game meaning that he took that 50K off someone else. Sad but true. If only pro's played that game it would've been very difficult to create a constant stream of revenue from it, but seeing that it attracts suckers by the dozens, they can easily sustain themselfs from a constant stream of school fees paid by the novice would-be traders. 90% of the payers feeds the bank balances of the 10% that make it. Not easy to money by a long shot.
I have found many articles who states this figure of 95% Losers as a fact, but I have yet to find the source study or an article who quotes the source of the study where this was established. Some sources more than 30 years old already quote this 95 Losers : 5 Winners ratio. I find it astounding this this ratio is still quoted today as fact DESPITE all the advances we have seen in computer power, software, speed of communications and quality of news. This ratio of 95 Losers : 5 Winners is a myth and not a fact.
I dont think anyone on this site said its not possible to make money trading - then they would be lying - i made money with warrants and ssf over short time - but our main point was that over an extended long term period one will probably make more money using a tested and proven long term strategy - like Louis says it will reduce expenses (brokerage, tax, etc) and give you more time to do other things. BTW: what capital did Chartist use to make R50k profit?
You have to view trading as a business, like owning any other type of business. It is not passive income, so you can't compare it to long term investing. it has risks, and you need to know what you are doing - and you need to have a passion for it. And having followed his blogs when he was still a forum member, I can say that he is pretty passionate about this.
kwaga - thanks for showing us the clip. doed he offer some form of training / paid membership? how does one get hold of him and how do you qualify ? is he a day trader only ? does he do swing trading ?
From what I know Chartist is no dud. He's very bright and outspoken. He has mentored some German or Swede that stayed with him for a while - tourist. I'm sure he can mentor you too, just keep your back to the wall at all times and only open your ears and eyes.