Bulls, Bears and Pigs

"Bulls and Bears make money, Pigs get slaughtered"?

Before computer algorithms started to affect the money that flowed through Wall Street the average investor could hold trades for long periods of time and see consistent gains with little drawdown.

Those times seem to have gone away. Of course, the credit for such a change does not solely belong to billion dollar institutions dedicating large sums of money developing sophisticated “trading algos”. Technological advances in smartphones and web access have opened markets to the entire world and with this increase of liquidity fueling the markets, what use to be yearly gains have become 30-minute trades.

Bears and Bulls have a bias that prevent them from realized gains. People who actively trade the market, changing positions frequently while limiting their exposure to potential losses that would result in reduced liquidity and leverage have become known as Pigs.

The opening statement above is true. Market pigs get slaughtered at a 95% failure rate; most traders never make a dime in the financial markets. Bears(Long Term Sellers) and Bulls(Long Term Buyers) aren’t exempt from similar suffering. You can call yourself whatever you want, labels won’t save you from the killer sharks and whales that seem to have agendas that are not aligned with the interest of the people.

Risky Markets are here to stay and the only thing you can do to stop fund managers and big banks from taking advantage of the dollars you earn is take control of where your money is allocated while orders are flowing. Order flow is what moves the markets, both buyers and sellers are needed in the global economy.

The Market can reach all-time highs while every country in the world seems to fall into recession because orders are flowing throughout the global economy. The system may look unstable from the outside when option lotto’s are executed by day traders or large positions are added to worthless penny stocks. The systems are imperfect and that should always enter your thought process when you are managing any amount of capital you are willing to risk.

The category of trader I fall under should be obvious to you by now. I don’t wait for times to change for me to realize gains. I attack the markets daily using techniques that I have learned from years of experience. I can execute 10 trades in a single day confidently because I understand how the market operates and I take advantage of opportunities the markets HAVE to offer to the people to justify its existence.