The Basics of Trading

This is a discussion on The Basics of Trading within the First Steps forums, part of the Reception category; [QUOTE=vergis92]You are right, and I don't want to ever learn daytrading, I daytraded the e-mini SP500 contract and was not ...

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Old Jan 2, 2007, 2:31pm   #449
Joined Nov 2006
Exclamation Re: The Basics of Trading

[QUOTE=vergis92]You are right, and I don't want to ever learn daytrading,
I daytraded the e-mini SP500 contract and was not worth the effort
even in winning months,

I'm not taking advice from anyone unless they are making 3 times
the index points I make, spend equal time , and have comparable
success rate.


And since daytrading cannot beat the efficiency of swing trading
I don't care about it,


You can all talk about the 'elite trader in oneself' and encourage all new traders
to find theirs in daytrading and lose all their money faster than ever and in vain
in the process.

most of the daytrading losers money sooner or later ends up in the hands of the longer term traders,

or do you think there's a perfect ballance of funds between winning and losing
daytraders?

If you can prove the statistics wrong I will sure change my mind

that's if you can answer at all...
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Old Jan 2, 2007, 2:43pm   #450
Joined Nov 2006
Angry Re: The Basics of Trading

Quote:
Originally Posted by dbphoenix
I've said nothing of the kind, but if you want to believe that I have, knock yourself out.

Db

sorry I'm only responding to nobrainer's brief comments
he says I talk a lot, I need a dictionary etc
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Old Jan 2, 2007, 4:35pm   #451
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Quote:
Originally Posted by dbphoenix
The statistics don't say any such thing. You're going by what you've been told or what you've read somewhere, not by reviewing actual studies.
Hi Dbp,
I suspect that the ol' chestnut about 90% of traders losing money is likely to surface again and again. If you have access to reliable stat's on what the true figures are, I'm sure that many peeps would be interested to review them - if you're able to provide a link. I have a sneaky feeling you've done this already elsewhere, but I couldn't think where to look, such is the size of the site!
Thanks in advance. Happy New Year everyone.
Tim.
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Old Jan 13, 2007, 2:09am   #452
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just wanted to say Thank You to FTSE Beater and TBS especially for their contributions in this thread. its nice to see people helping.
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Old Mar 17, 2007, 1:01am   #453
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Anyone know whats happened to FTSE Beater and TBS? Guys if you are out there and reading this I just wanna says cheers for all the posts on this thread. They have been of immense help.

FB, you mentioned a long way back about preparing a document of this thread, did you ever manage to complete it?

PS. First post after a long week reading this entire thread... great stuff...
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Old Mar 17, 2007, 5:45am   #454
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Old Mar 17, 2007, 1:06pm   #455
Joined Feb 2007
Hello all,

I have a great interest and would really like to get into trading. Like many, I am currently in full time employment but, unlike many, I actually like my job and don't feel the need that I want to replace it with full time trading.

Since being in full time work I can only trade outside of work hours so EOD trading seems like the best option. My first question is "Is it possible to still setup trades when the market has closed?" i.e. If for example I come home one evening, switch the PC on, check the FTSE (which has closed for the day) and see that I would like to enter long can I do that at 9pm? If not what exactly is an EOD trader? The only other option is trading on the US stock market which I beleive close at 9pm GMT.

Another question, If I have a capital of £1000 purely for trading, how much of this should I be investing at any one time in trades? I read somewhere that you should only have 1% of your capital in open trades at any one time. Is this correct?

Lastly, I just need to get my head around profit and loss... I have only ever dealt with shares and am very new to the concept of SB, futures and options. With shares I know that you won't ever make a loss unless you sell your shares below the price you bought them at. I know that with SB and Options you don't actually buy the shares. These are merely financial instruments which derive from the underlying stock you invest in. So....Let's forget Optiions for a little while as I know these are for the very experienced traders. If I had £100 that I wanted to invest in spread betting on stock X, I buy £100 of stock X at £1 (Is this the correct terminology?)... How long can I keep the trade open for? Does it cost me to keep the trade open overnight? What I am trying to get at is if stock X goes down to 90p and I have no stop loss, can't I just wait for it to go back up again before I close like with shares however long it takes or do I get a margin call?
So, purely as a mathematical example, if I did have a stop loss at 90p how much would I lose if it was hit? Also, if I closed the trade at £1.10 how much would I gain?..

I know these may seem like daft questions but I am only a newbie (a very determined one!)

Cheers
Frinos
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