Tonight’s video addresses my perspectives on the new Wall Street movie, including reinforcing the need to continue our decade-long attempt at increasing industry transparency.
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Don is an intraday S&P E-Mini Trader, Member of the CME, and Christian who has educated traders and advocated for industry transparency since 1999. Long-term performance of his privately traded fund ranks among the industry's best at over +800% from its 2004 inception to 2010.
His 2008 performance of +214% +$1.6 Million bested the industry's top CTAs.View Don's complete bio.
Don is the Chief Investment Officer for PivotPoint Advisors, LLC and is also the father of a Type 1 Diabetic daughter who has been the inspiration for his work with the ADA.
Ehhh … just a comment on the beginning introduction. I hear ya Don when you say the trading “game” in the sense as far as the adventure that is trading. The life experience.
The problem, is the “populist anger” crowd hears that terminology, and they begin to think that we as traders are playing with their life savings, or 401k or something. They don’t understand the wealth creative macro-economic forces, and the need for liquidity for longer term investors for corporations that actually create wealth where it did not exist before; and the dire consequences that come from a lack of liquidity.
It’s why I’m always sooooo hesitant to use terms like “game” or “gambling”
Now other than my rant there (forgive me for that, just one of those little things I’m a bit anal about), I totally agree with you on both the a) transparency in the capital markets ( I tell new traders that “honesty in the markets is honesty with self” ) and b) market training for others (net loss for my own decreased focus, but increase in the “liquidity of knowledge”).
Part of what I think transparency involves, is being transparent in knowledge, in addition to the natural transparency in showing our broker statements. What I mean, is that we also have to strive what is going on in the markets. Create liquidity in knowledge. Why is there a commodity futures market? Why is there a stock market? What do traders bring to the table in the energy markets? What is the economic dangers of OTC? What is the advantage to individual traders to OTC?
I firmly believe that this knowledge is what is so lacking in the markets today. I’ve met with fund managers of 10′s of millions of dollars, and they can’t even accurately describe WHY there is a stock market. WHY there is an energy futures market. Such a lack of knowledge does nothing for our own public image, and only creates misunderstandings. Which in the end, is a lack of transparency.
It’s why I focus so much of my time on explaining these concepts to new traders.
As always though, just my thoughts …
Dan