The Basics of Trading

This is a discussion on The Basics of Trading within the First Steps forums, part of the Reception category; Originally Posted by mcginty1 hi everyone i am so new to this, trading i mean and green!! so green!! i ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Dec 31, 2006, 2:23pm   #428
 
new_trader's Avatar
Joined Jan 2006
Quote:
Originally Posted by mcginty1
hi everyone i am so new to this, trading i mean and green!! so green!! i am beginning to get it a bit more, i have bought various ebooks paid for subscriptions but i still dont know when to start the trade i often end up a week in a trade because its gone the wrong way and i sit it out hoping i wont reach my stop loss but it has happened on occasions thankgod i only trade £1 per pip i would be skint now, although the temptation is there i discipline myself to keep to that amount always at least until i am confident and have amassed as much information as i can, i think it started out as a hobby but i know now that this is a serious business and i urge anyone starting out for the first time, not to rush things and do your homework, i still have loads to learn and i give the ( FOREX ) a lot of respect, I must say after reading FTSE BEATERs thread the explaination was in laymans terms and i have learnt something today which didnt cost me anything, happy trading to you all, ps can anyone explain when to start the trade what should i be looking for as even when the indicators tell you its about to change i still dont know whether to buy or sell, I told you i was green didnt i, thanks

This could be a start.

http://www.online-futurestrading.com...esolutions.htm

Top 10 Trading Resolutions

Every day we should all strive to become better traders. Here are 10 ways to help achieve that ambition:

1. Do not feel compelled to always have a trade on or to trade everyday. Capital preservation is the key to successful trading and sometimes that just means waiting when the odds are not in your favour.

Throughout all my years of investing I've found that the big money was never made in the buying or the selling. The big money was made in the waiting." Jesse Livermore

2. Develop your own proven trading system - accept that losing trades will be part of that system.

3. Do not let fear and greed influence your trading decisions.

4. Trading is a business, be strategic and logical.

5. Learn something new everyday that will help to maintain or increase your edge.

6. Keep a trading journal and review why your actual trades vary from your trading plan.

7. Do not fight the market, it's easier to run with the wind than against it.

8. Always trade with a stop loss and never move that stop further away or remove it completely. Do not allow a day trade to become a long term investment.

9. Become an expert, know your market inside out. Be it options, futures or an individual stock - you should strive to become the World authority in it!

10. The market will rarely do what it 'should' be doing. Instead focus on what it is doing.
new_trader is offline   Reply With Quote
Old Dec 31, 2006, 2:44pm   #429
 
1 Posts
Joined Dec 2006
I like the Livermore bit, very profound indeed. Of course, you have to know what you are waiting for?

He probably said that bit under his breath, with the very slightest of smirks.
The Truth is offline   Reply With Quote
Old Dec 31, 2006, 5:12pm   #430
Joined Nov 2006
Exclamation Re: The Basics of Trading

Quote:
Originally Posted by mcginty1
hi everyone i am so new to this, trading i mean and green!! so green!! i am beginning to get it a bit more, i have bought various ebooks paid for subscriptions but i still dont know when to start the trade i often end up a week in a trade because its gone the wrong way and i sit it out hoping i wont reach my stop loss but it has happened on occasions thankgod i only trade £1 per pip i would be skint now, although the temptation is there i discipline myself to keep to that amount always at least until i am confident and have amassed as much information as i can, i think it started out as a hobby but i know now that this is a serious business and i urge anyone starting out for the first time, not to rush things and do your homework, i still have loads to learn and i give the ( FOREX ) a lot of respect, I must say after reading FTSE BEATERs thread the explaination was in laymans terms and i have learnt something today which didnt cost me anything, happy trading to you all, ps can anyone explain when to start the trade what should i be looking for as even when the indicators tell you its about to change i still dont know whether to buy or sell, I told you i was green didnt i, thanks


Hi,
My advice is to choose a time frame that's right for you,

I don't think you can make it in forex or stocks as a daytrader ,


I have been trading since 2000, tried all sorts of techniques
and usually failed ,

the only trading style that has made me consistently money
is position trading, holding trades for 2 to 20 days with a strategy
based on completely ignoring news, journalists comments,

daytrading seems to me the wrong way to get started.
and hasn't worked consistently for me in any market,
what works this month won't work the next, daytrading is boring
and will often make you feel taking the wrong trades,
you will be missing gap openings, and you will be getting stopped out
a lot on sudden daily deviations even though the main trend remains
in tact, you won't have to suffer all this in a longer term strategy.


choose one that does hold positions overnight!


and don't be tricked by so called successful daytraders,

even though they use the same daytrading indicators
many of them have made millions on longer term trading vehicles,
futures and options but are hiding that fact by only showing their
intraday trades to make themselves look 'daredevils'



Best of luck
vergis92 is offline   Reply With Quote
Old Dec 31, 2006, 5:22pm   #431
 
new_trader's Avatar
Joined Jan 2006
Quote:
Originally Posted by vergis92
even though they use the same daytrading indicators
many of them have made millions on longer term trading vehicles,
futures and options but are hiding that fact by only showing their
intraday trades to make themselves look 'daredevils'

Best of luck
I'm not sure how much of this is fact but I could show you a few charts without any legends and I bet you wouldn't be able to pick out the daily, monthly and yearly charts.

My Point: If you don't understand what you are doing it is irrelevant how long you hold onto a trade
new_trader is offline   Reply With Quote
Old Dec 31, 2006, 5:45pm   #432
Joined Nov 2006
Quote:
Originally Posted by new_trader
I'm not sure how much of this is fact but I could show you a few charts without any legends and I bet you wouldn't be able to pick out the daily, monthly and yearly charts.

My Point: If you don't understand what you are doing it is irrelevant how long you hold onto a trade



In my strategy and market I understand very well what I'm doing,
I can't see the point of exclusively daytrading , or that daytrading is less
risky,
I firmly believe that the less time you spend watching and analysing the
market the higher your predictive efficiency will be.
this is due to many conflicting indications, phychological pressure

90% of the time the market stays flat, 10% of the time it moves


I can tell you for a fact that Gann, was not a daytrader, being in the market
all day long, no one has ever been more successful than him,
he never revealed his secret
vergis92 is offline   Reply With Quote
Old Jan 1, 2007, 12:25pm   #433
 
nine's Avatar
Joined Sep 2003
Quote:
Originally Posted by vergis92
I can tell you for a fact that Gann, was not a daytrader, being in the market
all day long, no one has ever been more successful than him,
he never revealed his secret
And the evidence of his enormous success is?
nine is offline   Reply With Quote
Old Jan 1, 2007, 2:07pm   #434
 
dbphoenix's Avatar
Joined Aug 2003
Quote:
Originally Posted by vergis92
Hi,
My advice is to choose a time frame that's right for you,

I don't think you can make it in forex or stocks as a daytrader ,


I have been trading since 2000, tried all sorts of techniques
and usually failed ,

the only trading style that has made me consistently money
is position trading, holding trades for 2 to 20 days with a strategy
based on completely ignoring news, journalists comments,

daytrading seems to me the wrong way to get started.
and hasn't worked consistently for me in any market,
what works this month won't work the next, daytrading is boring
and will often make you feel taking the wrong trades,
you will be missing gap openings, and you will be getting stopped out
a lot on sudden daily deviations even though the main trend remains
in tact, you won't have to suffer all this in a longer term strategy.


choose one that does hold positions overnight!


and don't be tricked by so called successful daytraders,

even though they use the same daytrading indicators
many of them have made millions on longer term trading vehicles,
futures and options but are hiding that fact by only showing their
intraday trades to make themselves look 'daredevils'



Best of luck
Your first statement is excellent advice. The rest of it is debatable.

There is a tendency, not exclusive to traders, to believe that whatever one fails at is a likely or even guaranteed failure for everyone else. If one fails at technical analysis, he decides that TA is crap. If he fails at scalping, or daytrading of any sort, he decides that no one can succeed at scalping. Or whatever. This tendency is rooted in an effort to persuade oneself that the failure is not his fault, that no one could succeed at whatever it is he failed at.

Some people are great at position trading. Some are great at trading fundamentals. Some are great scalpers. Some are great at options, or ETFs, or futures, or forex. Whatever. And many others suck at exactly the same things.

It's great that you found your niche. Or at least appear to have done so. But that does not mean that everyone will fail at everything else that you've failed at. The key is to keep your account intact until you've found whatever it is that you're good at, if anything. And whatever it is is really nobody else's business, just as however anyone else makes his money is really none of yours, at least to the extent of insisting that he cannot possibly be succeeding at whatever it is that he's succeeding at.

Db
__________________

dbphoenix is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Article: Basics of Trading: Part 1 T2W Bot Educational Resources 32 Feb 8, 2013 11:09pm
Article: Basics of Trading: Part 3 T2W Bot Educational Resources 13 Oct 21, 2012 1:26pm
Best Thread: The Basics of Trading FTSE Beater First Steps 360 Mar 23, 2011 12:37pm
Article: The Basics of Trading:Part 2 T2W Bot Educational Resources 8 Feb 16, 2005 11:09pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)