What went wrong with these charts:(

[tradingdime]

Hi All

I am asking for a helping hand from your experience, i finally did my first trading ever and it was a 100% failure i picked up 3 stocks (AED,MND,BKN) in ASX on my analysis.
I could only get in to BKN and MND both i stepped out with a loss i placed my analysis and charts in my first trading journal.

1.It would be great help if you guys can point out why my analysis was so bum even though i did it as i read in many of the exp traders books.

2.Although AED moved up, my order did't get executed as i placed an order at 1.175, i was wondering if you guys place an order at market instead of a value or how would you decide what price to place an order. I found my self buying BKN and MND too high. and so was the loss

Any help/thoughts would be greatly appreciated.

 

[Chorlton]

Hi All

I am asking for a helping hand from your experience, i finally did my first trading ever and it was a 100% failure i picked up 3 stocks (AED,MND,BKN) in ASX on my analysis.
I could only get in to BKN and MND both i stepped out with a loss i placed my analysis and charts in my first trading journal.

1.It would be great help if you guys can point out why my analysis was so bum even though i did it as i read in many of the exp traders books.

2.Although AED moved up, my order did't get executed as i placed an order at 1.175, i was wondering if you guys place an order at market instead of a value or how would you decide what price to place an order. I found my self buying BKN and MND too high. and so was the loss

Any help/thoughts would be greatly appreciated.

Hi Dime,

Can you post some charts as this will allow myself and others to offer some specific help.

Until then, here are a few observations:

1. Having 3 losses in a row does by no means equate to a losing strategy. If you don't realise this, then stop now and spend some time learning the game.

As a bit of fun, here is a question for you: If you had a strategy that had a win rate of 50% (basically a coin toss) how many losing trades could you encounter in a row?

2. Why did you purchase these particular stocks, why did you place your stop where you did? What was this decision based on? Clearly, it wasn't based on experience (as you stated you are a beginner....no offence meant) , so what was it based on? If it was based on someone's else's comments, then how do you know that this is a sensible place?
Without prior experience on watching price action, you are limited in your choices. One option is to spend time backtesting ideas. One of the benefits of doing this is that you quickly begin to appreciate what works and what doesn't.

3. Ideally, you want to choose stocks which offer a low-risk set-up. If you don't know what defines a low-risk set-up, then again stop trading now.
IMO Missing an initial move and jumping onboard late is not always a bad thing. I know a Trader who regular states that the more slippage he encounters on a particular trade the better it is as it suggest that a powerful move in underway.

One positive point is that you are recording your trades in a journal. This is important as you will be able to review them at a later date.

Out of interest, do you have a Trading Plan, and if so what does it include?

Chorlton

 

[everyonerich]

does anyone know which broker provide demo trading on stock?

 

[tradingdime]

Hi Dime,

Can you post some charts as this will allow myself and others to offer some specific help.

Until then, here are a few observations:

1. Having 3 losses in a row does by no means equate to a losing strategy. If you don't realise this, then stop now and spend some time learning the game.

As a bit of fun, here is a question for you: If you had a strategy that had a win rate of 50% (basically a coin toss) how many losing trades could you encounter in a row?

2. Why did you purchase these particular stocks, why did you place your stop where you did? What was this decision based on? Clearly, it wasn't based on experience (as you stated you are a beginner....no offence meant) , so what was it based on? If it was based on someone's else's comments, then how do you know that this is a sensible place?
Without prior experience on watching price action, you are limited in your choices. One option is to spend time backtesting ideas. One of the benefits of doing this is that you quickly begin to appreciate what works and what doesn't.

3. Ideally, you want to choose stocks which offer a low-risk set-up. If you don't know what defines a low-risk set-up, then again stop trading now.
IMO Missing an initial move and jumping onboard late is not always a bad thing. I know a Trader who regular states that the more slippage he encounters on a particular trade the better it is as it suggest that a powerful move in underway.

One positive point is that you are recording your trades in a journal. This is important as you will be able to review them at a later date.

Out of interest, do you have a Trading Plan, and if so what does it include?

Chorlton

Hi

Hi Dime,

Can you post some charts as this will allow myself and others to offer some specific help.

Until then, here are a few observations:

1. Having 3 lossess in a row does by no means equate to a losing strategy. If you don't realise this, then stop now and spend some time learning the game.

2. Why did you purchase these particular stocks, why did you place your stop where you did? What was this decision based on? Clearly, it wasn't based on experience (as you stated you are a beginner....no offence meant) , so what was it based on? If it was based on someone's else's comments, then how do you know that this is a sensible place?
Without prior experience on watching price action, you are limited in your choices. One option is to spend time backtesting ideas. One of the benefits of doing this is that you quickly begin to appreciate what works and what doesn't.

3. Ideally, you want to choose stocks which offer a low-risk set-up. If you don't know what defines a low-risk set-up, then again stop trading now.
IMO Missing an initial move and jumping onboard late is not always a bad thing. I know a Trader who regular states that the more slippage he encounters on a particular trade the better it is as it suggest that a powerful move in underway.

One positive point is that you are recording your trades in a journal. This is important as you will be able to review them at a later date.

Out of interest, do you have a Trading Plan, and if so what does it include?

Chorlton

Hi Chorlton

Thanks for your view.I select these charts as they were above 30 day Simple MA and
8day Exponential MA crossed 13 day MA with candlesticks.
If you ask me about my trading plan this is what basically i have .

i should do bit more research into low-risk set-up as you suggested, please have a look at these Charts

Thanks again
Tradingdime

 

[Chorlton]

Hi

Hi Chorlton

Thanks for your view.I select these charts as they were above 30 day Simple MA and
8day Exponential MA crossed 13 day MA with candlesticks.
If you ask me about my trading plan this is what basically i have .

i should do bit more research into low-risk set-up as you suggested, please have a look at these Charts

Thanks again
Tradingdime

Sorry Dime, but you haven't got a Trading Plan. All you have is an Entry condition.

I would suggest doing some research on here as to what is required for a complete Trading Plan, and equally important until you had achieved this I would personally stop trading with real money.

 

[Halcyon777]

Just starting out id say go with what you know.

Were in a recession so maybe I think before consumers want to spend more maybe theyll stay home playing more video games instead of going out. ERTS and ATVI the makers of Guitar Hero, Call of Duty, WOW, Starcraft, Diablo all have new releases this year including DJ Hero.

If you can afford 100 shares of them you might consider a 1 2 year buy and hold term, sell your profits as they go up on the short trends, and double down with your profits as it drops in the short term.

I have alot of little things im kinda familiar with but its all about your share purchasing power. If you throw 500 bux down on a stock thats 50 a share and it goes to 60 you only made 100 off those 10 shares, inversely the stock has alot of room to fall and you could end up losing faster than you win.

 

[Dacamic]

Just starting out id say go with what you know.

This is good advice for many people regardless of their experience level.

Were in a recession so maybe I think before consumers want to spend more maybe theyll stay home playing more video games instead of going out. ERTS and ATVI the makers of Guitar Hero, Call of Duty, WOW, Starcraft, Diablo all have new releases this year including DJ Hero.

If you can afford 100 shares of them you might consider a 1 2 year buy and hold term, sell your profits as they go up on the short trends, and double down with your profits as it drops in the short term.

The correlation is not very strong between fundamentals and stock price over short time frames (such as 1 to 2 years). This reality creates a dilemma because long-term fundamental forecasts are difficult to prepare with reasonable accuracy.

I have alot of little things im kinda familiar with but its all about your share purchasing power. If you throw 500 bux down on a stock thats 50 a share and it goes to 60 you only made 100 off those 10 shares, inversely the stock has alot of room to fall and you could end up losing faster than you win.

For the example you used, what alternative would you suggest?