I felt like writing an article for those that know nothing about trading, how to trade financial instruments (stock, commodities, currencies, options) because I just felt like it.
so well I have experience in trading for almost 7 years but when i began i was really naive about the whole thing and thought i was going became rich quickly and everything would be awesome, Haha now, because it was a pain to lose all my money and even got in debt. yea it wasn't easy i got it all wrong to start with!! thinking that reading a book about trading and reading about pivot points would let me kill the markets and become rich. sucker!
well I don't need to feel bad about it because so many fall in the same trap, so much so that 90 percent of the people that get themselves involved in trading one way or another loss their capital. yea this is not a game kids you are playing a game against professional players.
Well think about it like this; you would not read Basketball For Dummies and expect to play in the NBA and make to the semifinals much less win the tournament, that's how trading is like! as soon as you put you money in the markets you are playing against the best in the world, those guys have a lot on their favor like experience, technology and capital. let me explain
An experienced trader has maybe been in the shoes of a novice many years ago, and along the way they have learn many lessons regarding their craft, they should have nail down the discipline required to be a consistent trader, learned the techniques to trade their niche market - probably specialized in a particular market, learn about managing their capital like a business and control risk.
They have software and services advantages compared to a retail trader, they probably have proprietary software that does all of the work if not most of it for them, probably advantages in execution like placing their trading servers right next to the exchange so their order get executed milliseconds before yours can. so if you were going to buy at the same price as the pros you would been outrun to it. and if those were the last shares available produce a change in price immediately after that (oops did I just gave out a secret?).
Yea they are usually well funded which facilitates the technology advantage for them, but besides that, the capital to buy or sell a lot, meaning having the same buying power that hundreds if not thousands of novices combined would ever have