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go out and buy the newest, fastest, super-duper computer available. They then spend a great deal of effort deciding what computer trading program to purchase. In reality, there are only two types of programs available: a black box that tells you to buy the S&P Index at a certain price, or a program that allows you to write your own program to analyze the market. |
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Some new traders also attend seminars to learn the latest trading technique or system. Other traders decide that they don't want to work with a computer and its related programs, and instead look to a particular newsletter, fax, or e-mail, for the inside scoop. So they decide to take the trades recommended to them. |
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Keep in mind that the vast majority of traders (new and old) are very intelligent, and have achieved a high degree of success in their chosen professions. Because of the frantic rush not to miss the next huge move in corn futures, or the next Microsoft, most traders never stop to question the underlying premise that all of this activity is based on. |
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The fact that there are traders (in stocks, commodities, and currencies) who consistently remain profitable over time is undeniable. The fact that they earn huge sums of money is equally well known. It is also true that most (but not all) traders use computer programs to crunch the data, and that these computer programs are considered top secret. |
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These facts lead just about everyone to assume that top traders are successful because they have a program to correctly analyze and predict the market action. Everyone is focusing on the computer power, the computer program, and the quality of the data feed or news that these successful traders possess. No one is asking what came first: the individual's ability as a trader or the program? |
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The holy grail cannot be bought! Insofar as most traders are concerned, it does not really exist. Allow me to put this perception to rest at lastto toss it in a casket and tightly nail the lid shut. Suppose by some miracle you woke up and discovered that the great trader's fairy in the sky had installed the same trading program as used by Paul Tudor Jones in your computer, while you were sleeping. Even so, you would never, ever make the same type of return as P. T. Jones! |
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There is no newsletter, fax, or e-mail service that will make you millions. There is no computer program that will open secret doors. Forget about the overnight e-mail advisory line or the Internet chat room. Neither will make you rich. Forget it! |
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I am sorry to burst a bubble cherished by so many novice traders. After talking to hundreds of traders, and reviewing thousands of accounts, I can tell you that there simply isn't a holy grail as perceived by the novice trader. |
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