basic ideas


Active member
From the trade2win boot camp chat room

The following conversation is not to be taken as financial advice. It is as always vital that you do your own research.

Well we are going to try and learn some basic trading ideas today
The one thing traders at trade2win want is for you not to loose money
most here have lost lots over the years it is called PAYING FOR YOUR EDUCATION
so we want to try and speed up the learning to earning process
I have traded for about a year and still have lots to learn but have gained much from people here and off other sites
The way i have found it is best to learn is to start off wide that means you trade say monthly aim to make 5% a month when you are good at monthly trades ie you pick a stock and within a month it rises and you make a little profit you can start to bring that time down a little

so now the big question
what do you need to know to make the right decisions?
<sefty> any ideas
<hi5> tools?
<sefty> anything else
<sefty> yes
<hi5> research
<sefty> yes
<sefty> anything else
<Helmac2k> charts?
<sefty> yes those are the basics but essential

Do you need any expensive software for those
or can you do it for free from the http://www. Most of those you can do for free.
We are here to make profit so don't pay for anything if you can get it for free
until such time that you need it.
ok we use all of those things in a variety of different ways
So the first thing you need to do is draw up a shopping list
what you need where to get it from and how useful it is to your style of trading

Technical analysis is a must
A variety of trading strategies is also needed not every one works all the time
A good use of common sense is vital
so thats 3 important things
ta strategies common sense look out for those 3 main things
you may also want some fundamental training i personally have not as i only trade top stocks so the fundamentals should be goodif they arnt then the company should not be in the top ftse100 that makes a big difference.
penny stocks may cost pennys and will very rarely make you rich

<sefty> so any questions so far
hi5> what do you use for TA?
<sefty> for deciding when to buy and when to sell
<hi5> no, what software? <sefty> i use AIQ
<sefty> but you can use free sites on the web lots about
who do good charts etc ft marketwatch have good charts loads of others
<hi5> I've had OT a couple of months
<sefty> how do you find it hi5
<hi5> very hit and miss - mainly miss so far
<sefty> trust me there is no system that will give the winners all the time
<sefty> they help
<hi5> a few would be nice!
<Skim> hi5 - have a look at the systems trading board on the trade2win web site - that's quite a good place for swopping stuff on OmniTrader
<sefty> and sometimes give you a good advantage but it comes down to one thing hard work, research
<sefty> brain power and a bit of luck sometimes
<sefty> ok i asked helmac this ques earlier what two emotions drive the market
<sefty> any clues
<bis> greed
<hi5> fear
<sefty> yep
<sefty> how does it work the market to our advantage
<hi5> adds an element of predictability
<sefty> can we use it
<hi5> i'm hoping so<sefty> ok lets look at an example of today
<sefty> this morning what happened with sema group
<hi5> sharp drop
<sefty> why
<hi5> trading statement?
<sefty> ok if you hold sema at say 400 and you see it droping say to 350 what do you do
<strad> try to decide if it will fall furhter
<hi5> you need a stop loss
<sefty> what do most do remember our two emotions
<hi5> sell
<sefty> yes
<sefty> and that is what happened today
<sefty> does it stop at its right value or below
<strad> overshoots
yep it dropped from 400 to 330 in a very quick time
<sefty> mx who is a very skilled day trader and knows his stuff saw this and realised that it would
bounce. Which it did back up to 370 380 a very nice 12% ish
That is one strategy that day traders use it is very high risk and takes alot of nerve skill and knowledge of the market
but it shows how you can use fear and greed to your benefit
<sefty> any questions
<hi5> strategies for position trading?
<sefty> yer
<sefty> its one type of strategy
<sefty> there are lots
<sefty> mx will no doubt use several different ones today
<sefty> just like a mechanic will use lots of tools to fix your car
<sefty> we need to use different strategies
mX> True sefty
<sefty> you see clever bugger he is
<MX> got a big pin cushion
<sefty> ok so we have looked at things we need fear and greed and what we can do with them
in one example of real trades from mx today

Trade2win is made up a many different traders with equally as many different styles of trading it is vital that you find what works for you.