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can the speculator beat the professional traders in Chicago? It's not likely to happen. |
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Speculators must look at risk in terms of probability. What will happen if the worst case scenario occurs? Plan every trade with the worst case scenario in mind. This means you do not increase your risk as your account size increases. |
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Neal: You are so right on this. Trading Chicago style is being risk averse. We may not all understand all the systems, but we do have a feeling for risk. I am amazed by people attending seminars given by someone who got lucky and then markets it as the holy grail. For the techies reading this book, I have an additional question: What is your opinion of the new Java-based programs on the Internet? |
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Committee: These are exciting times coming our way. The Internet has opened up a whole new paradigm for the investor. There is a lot of Internet trading now, but the new Internet paradigm will bring the following changes: |
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The distribution channel, from the system developer to the investor, will change. In the future you will see systems accessed and used in cyberspace. Instead of downloading a program onto your computer, it will stay out on the Internet. You will access and use it out in cyberspace. This will more than likely mean an entirely new cost structure. Instead of paying $1000 to $2000 for a program that may or may not be workable, the trader of the future will pay a monthly fee. The monthly fee will be short-term instead of a long-time period. Another variation will be to use software programs for free. In order to support themselves, providers will sell advertising on their Web site. Imagine software that costs thousands of dollars now available for free in the near future. |
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You will choose your data provider in cyberspace. No special equipment, such as radio or satellite receivers, is necessary. All you will need is access to the Internet. |
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