What mightiness trace concern human relationship for hateful solar daytime trading success as well as failure? Another valuable study was conducted inwards the Korean futures market, amongst the Kospi index. Ryu studied the hateful solar daytime trading results for the Kospi over a to a greater extent than than iii twelvemonth period. He institute that 91% of the hateful solar daytime traders were domestic individuals as well as these traders accounted for over 85% of all transactions. Foreign institutional hateful solar daytime traders as well as domestic institutional hateful solar daytime traders made upwards nigh of the residue of the activity. On average, these institutional hateful solar daytime traders traded much to a greater extent than frequently--with much larger average volume--than the domestic individuals.
Ryu institute that the domestic private traders lost pregnant coin on average. He refers to them equally "uninformed as well as noisy". Conversely, the institutional hateful solar daytime traders made coin on average. Perhaps nigh interestingly, domestic private traders who traded to a greater extent than lost to a greater extent than money; they seemed to survive overconfident. Foreign institutional hateful solar daytime traders who traded to a greater extent than made to a greater extent than money. They seemed to survive exploiting a genuine edge. Ryu surmises that:
"This implies that unusual hateful solar daytime traders as well as coin managers are by as well as large amend equipped inwards price of their wealth, sophistication, specialty, as well as trading sense than ordinary hateful solar daytime traders." p. 9.
What does this mean? Perhaps this:
Resources brand a difference.
Knowledge matters.
Experience counts.
Most of all, wisdom is crucial: the powerfulness to human activity on the awareness that sometimes, the border conferred yesteryear cognition as well as sense but isn't there. There's no border to putting a Lycopersicon esculentum inwards a fruit salad.
Consider this example of successful hateful solar daytime trading from someone I knew years ago: He cultivated relationships amongst the sell side as well as had access to the major forecasts for earnings releases for companies. He also polled coin managers as well as equity sales professionals quarterly. This told him the "true consensus" for each release. He tested which earnings releases were movers of stocks based upon several factors, including deviations from consensus. Some deviations were worth trading on a same hateful solar daytime basis; others provided a longer-term edge. For the hateful solar daytime trades, he as well as his squad developed a rapid execution algorithm that entered orders into diverse stocks equally presently equally releases came out as well as deviations from consensus could survive calculated. Those trades were e'er shut out yesteryear goal of day.
He was a successful hateful solar daytime trader. He had specialized cognition as well as a clearly defined edge. He also had the wisdom to brand bets alone when the consensus was off sides as well as all other factors lined upwards inwards his favor. Many days he did non trade. That alignment of cognition as well as wisdom was the best predictor of his profitability.
Success is possible inwards trading, but not, equally Ryu notes, to the uninformed as well as overconfident.
Further Reading: Tackling the Challenge of Day Trading
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