Essentials Of 'New to Trading'

This is a discussion on Essentials Of 'New to Trading' within the First Steps forums, part of the Reception category; Hi, I am new to investing, though I will soon be the proud owner of at least 50-shares of Duke ...

Reply
 
LinkBack Thread Tools Search this Thread
Old May 2, 2012, 6:19pm   #17
 
1 Posts
Joined May 2012
Re: Essentials Of 'First Steps'

Hi, I am new to investing, though I will soon be the proud owner of at least 50-shares of Duke Energy. Does anyone care to answer this question for me? Primarily this: Dividends - shares of ownership in a company, but how are dividends actually acrrued prior to payout? Are they actually weekly income as I have assumed and tallied for periodic disbursement minus company retainings? I would appreciate an honest and concise response. Thank you.

Last edited by Frater.vn; May 2, 2012 at 6:57pm.
Frater.vn is offline   Reply With Quote
Old May 2, 2012, 8:10pm   #18
The Staff are paid members that perform various roles such as editorial, advertising, support or technical work.
 
timsk's Avatar
Joined Mar 2002
Re: Essentials Of 'First Steps'

timsk started this thread Welcome all new members!

Frater - a dividend is usually a percentage of the value of the share. So, if a share is priced at $1.00 and you own 1,000 of them and the dividend is 5%, you will receive 1 x 5% x 1,000 = $50.00.

In the case of Duke Energy, they appear to pay a quarterly dividend of around about $0.25 per share, therefore, you'll receive around $12.50 for your holding of 50 shares.
Duke Energy
Don't spend it all at once!

For more essential information about shares, check out the Essentials of Equities Sticky.
Tim.
__________________
I'm New To T2W - Where Do I Start? - a must read for anyone new to T2W
I'm New To TRADING – Where Do I Start? - a must read for anyone new to TRADING
The Trading Plan Template - a must read for anyone without a proper TRADING PLAN
Please note: I am part of T2W Admin' Staff - I am NOT a Moderator!
timsk is offline   Reply With Quote
Old Jun 3, 2012, 12:33pm   #19
 
Dominator4fx's Avatar
Joined Apr 2012
Re: Best Threads In The 'First Steps' Forum

For a beginner in Forex trading i will advise 5 things:

1. Starting with a Demo account

2. Learning the basics right

3. Money Management

4. Always trading with Stop Loss

5. Planning

Last edited by timsk; Jan 15, 2013 at 5:29pm. Reason: Monthly housekeeping
Dominator4fx is offline Coach/Trainer   Reply With Quote
Old Jul 3, 2012, 5:04pm   #20
Joined Jan 2007
Re: Essentials Of 'First Steps'

In response to many posts Ive seen here this is the absolute truth of the matter. This information I will give you is going to accelerate you.. but be very careful indeed.

1. The most critical thing in trying to understand the markets and others plus thier commentaries is TIMEFRAME. Thjis is why there is so much confusion. Group issues into timeframes and the world becomes a litle easier e.g. IS this intraday, 2-5 days or a month or more than a couple of months. This is critical.
2. Scalp trading for beginners is the road to ruin. Death by 1000 cuts
3. The best money is made over longer timeframes.. get rid of that busy trader active trader image taking trade decisions every 5 minutes.. it will kill your account and reduce learning.
4. Stop believing you have to be right every trade. No one knows any trade will be a winner., if you approach the market believing a trade MUST win. you will feel negative about losses =more stress= tense thinking=limited thinking= fighting the market= chasing the market for more losses.
5. New traders do the opposite of what should be done.. they hold on to losses and then as soon as they feel a trade winning they profit. NO you must cut the losing trade and it is ABSOLUTELY CRITICAL that you hold on to winners ELSE the mathematics of winning DOESNT WORK.
6. How do we do this? well, your BELIEFS need to change. RISK of loss must be expected so therefore you cut your risk by never risking more than 1-5% on any single trade. this means a 5000 account you dont risk more than 50-150 max or you are simply going to go broke PERIOD.
7. The markets are a game, in this game you must ride winners, your searching for trains, your not searching for little disposable bicycles. if you do YOU WILL BLOW YOUR ACCOUNT. PERIOD.
8 . If you win 3 out of every ten trades, and each trade you lose your loss is 100 units.. the last three trades must collectively make700 just to break even. as such scalping for less than a 3 to one gain is a losers game because even then your 3 winners one will be break even and one will be only a small gain. conclusion.. begginers must be looking for trades where they believe a 7 to 10 fold win loss ratio is possible OR DONT TAKE THE TRADE. This means typically you should be looking for massive swing trades, not silly scalp trades. OR DONT TAKE THE TRADE
9. Spreadbetting is a sophisticated tool not a begginers tool.You should avoid spreadbetting if your a newbie, its not in thier interest for you to win, why? most make thier money from your losses. WAKE UP! Thats why you dont see volume data much amongst them.
10. The three most important concepts in trading are a trade plan that describes all the exit and entry signals and strategies you are looking for (so you dont have to think much during trading). A deep understanding of your personality type and your beliefs. and the most important of all a realisation that knowing more doesnt mean more money, preparedness and planning of eventualities ie always controlling risk & the application of your money for each trade and successive trade is actually what makes you money. e.g. fixed amount trading e.g a specific risk amount isnt going to help you achieve your dreams.

11. It is possible that you can do everything right and simply through bad luck you could have a string of loosers hit you 16 times in a row. Does your system allow for this high probability of a losing streak?

When you have been trading on and off for 7 years like me and you get fed up of loosing, this is where you end up, finally dotting all the is and crossing all the Ts wishing you had listened to EVERY corner of that advice given to you. Well, realise you have just been given the keys here, and I dont care how advanced you are.. if you disagree with any of this, you need to examine your belief systems and try and alter or refine those beliefs before you even begin to reply back to me.
Paulds11 is offline   Reply With Quote
Thanks! The following members like this post: 0007 , Ocirne , trader-yoda
Old Jul 3, 2012, 5:29pm   #21
 
Shakone's Avatar
Joined Feb 2009
Re: Essentials Of 'First Steps'

Quote:
Originally Posted by Paulds11 View Post
In response to many posts Ive seen here this is the absolute truth of the matter. This information I will give you is going to accelerate you.. but be very careful indeed.

1. The most critical thing in trying to understand the markets and others plus thier commentaries is TIMEFRAME. Thjis is why there is so much confusion. Group issues into timeframes and the world becomes a litle easier e.g. IS this intraday, 2-5 days or a month or more than a couple of months. This is critical.
2. Scalp trading for beginners is the road to ruin. Death by 1000 cuts
3. The best money is made over longer timeframes.. get rid of that busy trader active trader image taking trade decisions every 5 minutes.. it will kill your account and reduce learning.
4. Stop believing you have to be right every trade. No one knows any trade will be a winner., if you approach the market believing a trade MUST win. you will feel negative about losses =more stress= tense thinking=limited thinking= fighting the market= chasing the market for more losses.
5. New traders do the opposite of what should be done.. they hold on to losses and then as soon as they feel a trade winning they profit. NO you must cut the losing trade and it is ABSOLUTELY CRITICAL that you hold on to winners ELSE the mathematics of winning DOESNT WORK.
6. How do we do this? well, your BELIEFS need to change. RISK of loss must be expected so therefore you cut your risk by never risking more than 1-5% on any single trade. this means a 5000 account you dont risk more than 50-150 max or you are simply going to go broke PERIOD.
7. The markets are a game, in this game you must ride winners, your searching for trains, your not searching for little disposable bicycles. if you do YOU WILL BLOW YOUR ACCOUNT. PERIOD.
8 . If you win 3 out of every ten trades, and each trade you lose your loss is 100 units.. the last three trades must collectively make700 just to break even. as such scalping for less than a 3 to one gain is a losers game because even then your 3 winners one will be break even and one will be only a small gain. conclusion.. begginers must be looking for trades where they believe a 7 to 10 fold win loss ratio is possible OR DONT TAKE THE TRADE. This means typically you should be looking for massive swing trades, not silly scalp trades. OR DONT TAKE THE TRADE
9. Spreadbetting is a sophisticated tool not a begginers tool.You should avoid spreadbetting if your a newbie, its not in thier interest for you to win, why? most make thier money from your losses. WAKE UP! Thats why you dont see volume data much amongst them.
10. The three most important concepts in trading are a trade plan that describes all the exit and entry signals and strategies you are looking for (so you dont have to think much during trading). A deep understanding of your personality type and your beliefs. and the most important of all a realisation that knowing more doesnt mean more money, preparedness and planning of eventualities ie always controlling risk & the application of your money for each trade and successive trade is actually what makes you money. e.g. fixed amount trading e.g a specific risk amount isnt going to help you achieve your dreams.

11. It is possible that you can do everything right and simply through bad luck you could have a string of loosers hit you 16 times in a row. Does your system allow for this high probability of a losing streak?

When you have been trading on and off for 7 years like me and you get fed up of loosing, this is where you end up, finally dotting all the is and crossing all the Ts wishing you had listened to EVERY corner of that advice given to you. Well, realise you have just been given the keys here, and I dont care how advanced you are.. if you disagree with any of this, you need to examine your belief systems and try and alter or refine those beliefs before you even begin to reply back to me.
Interesting post. Always good to be clear on a few things. Of the statements I've emboldened, define 'best money'. Easiest to trade? Easiest to understand? Can increase account more quickly? Smallest drawdown? Least stress? What is best about it?

On risk reward. It's always possible on any entry that it will go more though isn't it? You can have an idea where trouble areas are, but it's hard to say for sure it can't go past a particular area. Therefore, please be clear on which trades you would turn down because you believe they have no potential to have such a risk:reward.

Do you believe it is impossible to make money from a lower risk:reward in the long run?

Thanks.
Shakone is offline   Reply With Quote
Old Jul 3, 2012, 5:58pm   #22
Joined Jan 2007
Re: Essentials Of 'First Steps'

Shakone

Best money? =The most profitable trades, the smoothest returns.. the most efficient capture of profits.

increase account? = increase your alpha, your equity curve, your account profit figure

win loss ratio: every trader has a win loss ratio.. the best traders rise to around 40-60% of thier trades as winners. if you lose 7 times out of ten, add up the cost of those losses and you will see that the winning three must exceed the value of the loosing 7 . One of those winners be a break even, thus you need to be gunning for trades that typically exceed your average single loss by at least 3.5 times. Can you see this? keep it simple. On this basis of 3/10 winners you have a 30% success rate. and in order for that success rate to be profitable to you you must be looking to EXCEED your average loss by a factor of 3.5 MINIMUM. Thus you need to be looking for real super potential for each trade, else youre going to go broke. Many traders dont even do this type of homework. This is why they (and me many times in the past) were losing and blew their accounts.

By developing a trading plan, you have already done this homework. All your looking to do is recognise patterns from historical information . When you see that this pattern yeilds a POSITIVE EXPECTATION ie. yes you can see this tends to happen when x y z happens that is the beggining of a stategy with a POSITIVE EXPECTATION ie more than 50% chance it will succeed for any given market CONDITION( choppy or smooth market etc). THIS IS where you spend ALL your time as a trader. doing homework looking for patterns.. NOT in front of the DOM ready to pull the trigger when you "feel like it".

You will turn down trades that dont fit the strategy you have pre=planned. It is a thing of beauty sit and watch the market and not take any trade because all day long none met your criteria. THIS IS THE DISCIPLINE you need. ALL TRADES ARE TURNED DOWN if they do not meet your conditions as set out in your trade plan. simple.

You asked "Do you believe it is impossible to make money from a lower risk:reward in the long run"?
My answer is this.. it is possible to make 300 million from such a strategy. IT IS THE MANAGEMENT OF RISK (money) THAT KEEPS YOU IN THE GAME LONG ENOUGH TO MAKE PROFITS ON MANY TRADES. SUCH MANAGEMENT OF YOUR MONEY REQUIRES A LOW RISK TO REWARD plan. ALL MONEY MAKING PLANS have a lowered RISK to reward. You dont have to RISK everything to make a lot of money.. you just have manage the risk carefully from money management rules you set up in your trading plan and then NEVER BREAK YOUR RULES.

Why am I doint all this? because the trading world is full of crap and its about time people were not misled. by thieves and brokers who do not have your best interest at heart.

Last edited by timsk; Sep 17, 2012 at 3:58pm. Reason: Removed reference to a book with no name!
Paulds11 is offline   Reply With Quote
Old Jul 5, 2012, 9:53pm   #23
 
3 Posts
Joined Aug 2010
Re: Essentials Of 'First Steps'

Thanks to all who have contributed I this tutorial. It was quite a useful read through. Though I didn't see anything about trading stocks? Wonder why?
mamcm is offline   Reply With Quote
Old Jul 6, 2012, 12:04pm   #24
The Staff are paid members that perform various roles such as editorial, advertising, support or technical work.
 
timsk's Avatar
Joined Mar 2002
Re: Essentials Of 'First Steps'

timsk started this thread
Quote:
Originally Posted by mamcm View Post
. . . Though I didn't see anything about trading stocks? Wonder why?
Hi mamcm,
Welcome to the site.

The Sticky is generic - so it covers trading in general - regardless of whether you're a scalper or position trader and whether you trade stocks or forex etc.
Tim.
__________________
I'm New To T2W - Where Do I Start? - a must read for anyone new to T2W
I'm New To TRADING – Where Do I Start? - a must read for anyone new to TRADING
The Trading Plan Template - a must read for anyone without a proper TRADING PLAN
Please note: I am part of T2W Admin' Staff - I am NOT a Moderator!
timsk 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
Essentials Of Trading Psychology T2W Bot Psychology, Risk & Money Management 13 Jun 17, 2017 2:05pm
Essentials Of 'Trading Journals' timsk Trading Journals 13 May 31, 2017 1:47am
Essentials Of 'General Trading Chat' timsk General Trading Chat 6 Mar 17, 2017 2:14pm
The Essentials of Automated Stock Trading Softwares allenrodger Trading Software 0 Apr 12, 2014 11:51am
New Product: The Essentials of Trading Course DVD EK1 T2W Feedback & Announcements 0 Aug 22, 2008 4:29pm

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