I have been meaning to get to this interesting article Heidi N. Moore wrote over at Marketplace radio. â??They Are Day Traders. Hear them Roar.â? A terrific looking commercial for OpenTrader accompanies the article (video here).
The video is pretty slick. But as intriguing as it looks, it overstates what I believe is the true criticism of trading â?? not that its all luck, not that no one can beat the market â?? but rather, that the odds are very much stacked against you. The truth is it is really, really hard to do professionally.
I have always found that for newbie traders, a better analogy than a casino is the possibility becoming a professional athlete. Trading and athletics have many parallels. Both require a combination of natural skills, discipline, and very hard work. Both require an ability to deal with elements of randomness that is challenging in a competitive environment. At the NCAA level, just about any team can beat any other on any given afternoon. A lucky bounce, a bad call, a hot streak, and the underdog wins.
It is no coincidence that many trading desks are stacked with former college athletes.
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