NexusFi: Find Your Edge


Home Menu

 





Is trading really a Marathon??


Discussion in Psychology and Money Management

Updated
      Top Posters
    1. looks_one HarryBaker with 4 posts (0 thanks)
    2. looks_two SBtrader82 with 2 posts (3 thanks)
    3. looks_3 bobwest with 1 posts (8 thanks)
    4. looks_4 Pa Dax with 1 posts (4 thanks)
      Best Posters
    1. looks_one bobwest with 8 thanks per post
    2. looks_two Silver Dragon with 8 thanks per post
    3. looks_3 Pa Dax with 4 thanks per post
    4. looks_4 AllSeeker with 4 thanks per post
    1. trending_up 1,919 views
    2. thumb_up 28 thanks given
    3. group 9 followers
    1. forum 8 posts
    2. attach_file 0 attachments




 
Search this Thread

Is trading really a Marathon??

(login for full post details)
  #1 (permalink)
 
SBtrader82's Avatar
 SBtrader82   is a Vendor
 
Posts: 587 since Feb 2018
Thanks Given: 222
Thanks Received: 1,333

One of the phrases that we hear all the time is this "trading is not a sprint, it's a marathon".
Given the similarities between trading and gambling, weather you believe to be the gambler or the casino, I am starting to question the "marathon belief".
I will highlight some points to raise the discussions:
  1. profits in trading are often unequally distributed, meaning that 90% of the profits arise from only 10% of the trades. I read this very often in trading books and I observed this in my own results (look at this post in my journal
  2. some very famous traders and speculators, like George Soros, Paul Tudor John, Mike Burry, CIS or BNF (the last two are Japanese), made huge trades that made them famous and they bet most of their assets on one big play
  3. if trading has any similarities with Poker, also poker players made fortunes quite rapidly and not steady incomes over the years
Finally I will leave you with this video with the story of Don Johnson that made 15 millions in one night playing Blackjack. He agreed with the casinos some slights changes in the rules of BlackJack that turned the stats in his favor..... so technically he had an advantage over the casino. However he made 15 million in one night not in one year.

Let me know what you think!


Follow me on Twitter Visit my NexusFi Trade Journal Started this thread Reply With Quote
The following user says Thank You to SBtrader82 for this post:

Can you help answer these questions
from other members on NexusFi?
Tradestation historical data to be used in NinjaTrader 8
Platforms and Indicators
Price Action Swing Pro
Traders Hideout
Optimal Futures Trading Workflow
Platforms and Indicators
Do 5-days or 7-days constitute a Multiweek Channel?
Currencies
convert tradingview pinescript to ninjascript indicator …
The Elite Circle
 

(login for full post details)
  #2 (permalink)
 
Silver Dragon's Avatar
 Silver Dragon 
Cincinnati Ohio
Legendary Master Data Manipulator
 
Experience: Intermediate
Platform: TastyWorks / NT
Broker: TastyWorks /NT
Trading: FX, Stocks, Options
Posts: 2,107 since Feb 2011
Thanks Given: 6,422
Thanks Received: 5,238


SBtrader82 View Post
One of the phrases that we hear all the time is this "trading is not a sprint, it's a marathon".
Given the similarities between trading and gambling, weather you believe to be the gambler or the casino, I am starting to question the "marathon belief".
I will highlight some points to raise the discussions:
  1. profits in trading are often unequally distributed, meaning that 90% of the profits arise from only 10% of the trades. I read this very often in trading books and I observed this in my own results (look at this post in my journal
  2. some very famous traders and speculators, like George Soros, Paul Tudor John, Mike Burry, CIS or BNF (the last two are Japanese), made huge trades that made them famous and they bet most of their assets on one big play
  3. if trading has any similarities with Poker, also poker players made fortunes quite rapidly and not steady incomes over the years
Finally I will leave you with this video with the story of Don Johnson that made 15 millions in one night playing Blackjack. He agreed with the casinos some slights changes in the rules of BlackJack that turned the stats in his favor..... so technically he had an advantage over the casino. However he made 15 million in one night not in one year.

Let me know what you think!


@SBtrader82

To point #3; that may be true however they didnít learn how to play poker over a weekend. The marathon is the learning process and the applying what you learned. The sprint is having a edge and betting big when the conditions are right. I would also point out they never talk about the players/traders who bet big and lost it all. Guarantee there are far more of those than the ones who made it big.

Personally I will stick with the marathon.

Robert

nosce te ipsum

You make your own opportunities in life.
Visit my NexusFi Trade Journal Reply With Quote
The following 8 users say Thank You to Silver Dragon for this post:
(login for full post details)
  #3 (permalink)
rafasc
Cancun, Mexico
 
Posts: 2 since Jan 2021
Thanks Given: 0
Thanks Received: 1


My opinion on "trading is a marathon" mentality is not such to preclude you from having large winning trades, but rather to keep you grounded in the sense that you are not going to go from knowing anything about trading to making consistent money in a short amount of time.

With your examples of the famous traders or poker players... they all have extensive training and experience because they have been consistently profitable over many years, which allowed them to make large bets with confidence. You can have both.
I know consistently profitable traders that take 3k home w/w and others who take 120M home w/w.
Consistency and high profits are not mutually exclusive.

Let me know what you think.

Reply With Quote
The following user says Thank You to rafasc for this post:
(login for full post details)
  #4 (permalink)
 
SBtrader82's Avatar
 SBtrader82   is a Vendor
 
Posts: 587 since Feb 2018
Thanks Given: 222
Thanks Received: 1,333

yes, I partially agree with you but at least for me having this marathon mentality often prevents me to bet bigger on some very good trades.
Looking at the journals of many traders in the blog I can see we all have this issue. You will see some of them making 500 USD some day, others making 1000USD, some of them they will call it a good day when they make 2000 USD and then they will give back 4K in one day (and I am part of them). What if you were able to sit on your had most of the day and then bet 2K to gain 8K in one day? most of the time you will not do this.

You are afraid of betting 2K on a single trade that might be a runner. ... then 3 days later you lose 3K with ten consecutive losses of 300 USD.
This happen to me all the time.

Follow me on Twitter Visit my NexusFi Trade Journal Started this thread Reply With Quote
The following 2 users say Thank You to SBtrader82 for this post:
(login for full post details)
  #5 (permalink)
 Addy 
chicago, IL usa
 
Posts: 8 since Jan 2021

rooms I am in start at 8 am and finish at 10:30 am EST; no marathon here.

Reply With Quote
(login for full post details)
  #6 (permalink)
 
Pa Dax's Avatar
 Pa Dax 
Netherlands
Price Action Scientist
 
Experience: Advanced
Platform: NinjaTrader, IB TWS
Broker: InteractiveBrokers, CQG
Trading: ES
Posts: 1,235 since Oct 2017
Thanks Given: 1,998
Thanks Received: 6,299

It is a marathon in the sense that for most of us it took years before becoming consistently profitable (if at all, some never make it).

Sent using the futures.io mobile app

Visit my NexusFi Trade Journal Reply With Quote
The following 4 users say Thank You to Pa Dax for this post:
(login for full post details)
  #7 (permalink)
 
AllSeeker's Avatar
 AllSeeker 
Mumbai, India
Legendary Pratik_4Clover
 
Experience: Beginner
Platform: TradingView & ZerodhaKite
Trading: NIFTY, BANKNIFTY
Posts: 1,401 since Jan 2019
Thanks Given: 5,193
Thanks Received: 4,923

Yes, and I would say it tests more than just endurance.

Visit my NexusFi Trade Journal Reply With Quote
The following 4 users say Thank You to AllSeeker for this post:
(login for full post details)
  #8 (permalink)
 
bobwest's Avatar
 bobwest 
Western Florida
Site Moderator
 
Experience: Advanced
Platform: Sierra Chart
Trading: ES, YM
Posts: 8,088 since Jan 2013
Thanks Given: 56,727
Thanks Received: 26,033


SBtrader82 View Post
  1. profits in trading are often unequally distributed, meaning that 90% of the profits arise from only 10% of the trades. I read this very often in trading books and I observed this in my own results (look at this post in my journal
  2. some very famous traders and speculators, like George Soros, Paul Tudor John, Mike Burry, CIS or BNF (the last two are Japanese), made huge trades that made them famous and they bet most of their assets on one big play
  3. if trading has any similarities with Poker, also poker players made fortunes quite rapidly and not steady incomes over the years

I think you've somewhat re-defined the terms here, and yes, there is probably a succession of sprints. Maybe only a few big ones. (Also flops. )

But the meaning that I take of "marathon" is that it's something that takes a long damn time. Since trading well takes a long damn time, I agree with the others who have said that no, it's a marathon.

Thinking about the whole span of time it takes, parts of it are over quickly, but the total span is still long, and you need patience, endurance, and, as @LastDino said, something more as well.

But it isn't quick, that's for sure.

Bob.

When one door closes, another opens.
-- Cervantes, Don Quixote
Reply With Quote
The following 8 users say Thank You to bobwest for this post:
(login for full post details)
  #9 (permalink)
 ZB23 
Southern MD
 
Experience: Intermediate
Platform: TWS & IBAPI
Broker: Interactive Brokers
Trading: Futures
Posts: 128 since Feb 2017
Thanks Given: 50
Thanks Received: 163

The majority of traders lose money. It's a marathon for a trader to go from the majority to the minority.

Reply With Quote





Last Updated on February 1, 2023


© 2023 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts