Trading
by
Phil Madsen
In finance, a trader (also known as a speculator) is an individual who buys and sells financial assets (stocks, bonds, options, futures, commodities, currencies) for the purpose of making a profit. Investors tend to hold assets for years at a time. Traders tend to hold assets for months, weeks, days, hours or even minutes at a time.
My trading journey began in October 2008 when I made some haphazard stock index options trades while knowing little about it. Those trades taught me both the high rewards and high risks of the trading game. Realizing I was playing with fire, I settled down to study and practice. Fifteen months later, in January 2010, I considered myself an entry-level trader and felt optimistic about trading success. I moved on from there and continue to trade today.
I once shared on this page the details of my trading journey but have since deleted that information. Professional traders who don't manage other people's money but trade only their own accounts are a reclusive bunch. The deeper I get into trading, the more I understand why; thus the deleted information.
Suffice it to say that I am a full-time expediter and part-time trader. When the expediting business Diane and I jointly operate serves up some spare time, I often use it for trading. You may see me blogging about the time I spend trading on a given day or night. You will not see me talking about specific trades, experiences, methods or results. (See also my Reply to Traders and Trader Wannabees.)
If you are considering trading as something for you, know that trading and expediting have nothing in common. Trading is not gambling and it is not easy. Mentally, it is the most difficult challenge I have ever taken on. While trading is potentially lucrative, it is also potentially disastrous. Indeed, 90 percent of the people who trade are net losers. Trading is a serious and risky business that should be approached as such.