I'm new, need help please?

Vernon

Newbie
6 0
Kevin546,

You and me seem to be concetrating on the FTSE and as I am a newbi who is only just opening an account then perhaps I can learn some things from you, originally I had researched swing trading, but more recently intraday seems good, anyway perhaps you can make contact and let me know. Regards Vernon
 

peedee

1
341 0
One of the main questions which you should ask yourself MeNewTrader is are you genuinely interested in trading? or is it just a bit of a whim ...? The advice you can get on this site from some of the more seasoned traders is just as good as any information you will find in any book, but personally and this is only a personal point of view the more time paper trading the better! I did read on this site that it should not be uncommon for a novice trader to paper trade for at least twelve months ( to get a feel for the markets ), the point i am trying to get across is, it takes time at first. Goodluck! PeeDee.
 

kevin546

Established member
699 0
Vernon

I am no expert all I can say is that you need to establish for yourself what style of trading you are most comfortable with and then the time -frame that best suits you. If daytrading try not to use to many different signals and keep it simple. Establish the best signals which return a profit more often than not and stick with that set-up. Then when you see a single you know what to expect from it and all you need from your trading at that point is the discipline to repeat the process whenever your signal presents itself.

Thats one part the other is to establish a complete trading plan, how to manage risk control emotional trading and a stop policy. If you are starting out then I would advise you to put Dr Alexander Elder's book 'come into my trading room' on your present list to Santa. You will find it a good read and will help develop your whole approach to trading. There are examples of trades but these tend to be from a daily chart than intraday but they are explained and swing trading or trend trading apply just as well to the intraday position as they do to the longer one. Its how you manage your trading that is important. There is no one specific signal that provides us with the holy grail of trading. Very successful traders have given there own systems to others to try only to find that the results were not as good as they should have been. That is why you need to find something that works for you and gives you an edge.

Kevin
 

oatman

Senior member
2,879 22
You won't get a feel for the markets by paper trading. When you've taken your first loss, then you'll understand what it's about. I believe you're better off trading in small amounts once you've decided on your medium and style.
There's nothing like that sickening feeling in your stomach when you "forgot" to put your stop in and the market's in free fall :cheesy:
 

alanb41252

1
264 0
I tend to agree about paper trading. You can paper trade for ever and never learn what it actually feels like to take a hit.

As soon as you put real money into play the feelings are completely different and your behaviour can change markedly if you do not exercise rigid discipline.

Everything learnt from paper trading can be thrown away in a split second of indecision, indiscipline or a moment of madness.

Better to get trading for real asap in my view but for small, small money.
 

oatman

Senior member
2,879 22
Glad someone agrees with me on that one. I see a lot of advice in favour of paper trading but try not to bite :cheesy:
If you paper trade for a year, you're more likely to see a market move through different phases of volatility and liquidity without gaining anything. Your chosen method might be OK for a few months but then you may have to adapt it. "Looking" at a market doesn't give you a feel. The longer you look, the less comfortable you'll feel when you have to hit that button. Get it over with and it becomes easier. This would apply to trading shorter time frames, rather than position taking.
That's better :cheesy:
 

alanb41252

1
264 0
It is also amazing how consistent success at paper trading converts into immediate failure when starting the real thing.

It's all down to behaviour.
 

oatman

Senior member
2,879 22
It's OK to get you into your trading platform/chart system and some sort of rhythm, test your method and feel comfortable, but after that I think it's pointless to pursue.
You will definitely learn more by "doing" it. :cool: :cheesy:
 

tekker

Newbie
5 0
I have to chip in here and agree with you. As someone who has progressed through paper trading to spending real money I can attest to Oatman's comment, above, about the sickening feeling you get seeing your (real) money disappear!
 

oatman

Senior member
2,879 22
Well done mate, you've passed the first hurdle. That's the hardest part.
 

peedee

1
341 0
What i forgot to mention was that it really pisses you off making paper profit! But, if you are only just starting out...the choice is yours.
 

Quercus

Well-known member
399 7
You've just highlighted another BIG problem there peedee.
Lamenting missed profits is perhaps as big a problem as coming to terms with your losses!
It's down to those two four letter words again - Fear and Hope!
Cheers
Quercus
 

peedee

1
341 0
I agree with oatman and tekker ( in a way ), but when somebody starts trading with real money too soon they are probably getting a feel for thier own disposition rather than the market. Saying that the two seem one anyway. Who knows!
 

kevin546

Established member
699 0
Could not agree more with you all about paper trading, it must only be as a short starting point. The reason why people appear to do well paper trading is they do not have to deal with the emotional side when it is for real. Only then do you test your set-up but more importantly yourself. You may find you have to adapt some part of your original plan so that it actually forces you to deal with discipline and rub out emotional thoughts.

I also agree with the comments concerning missed profit etc you will do much better if your mind is focused on getting something from the market. You should also not worry about taking losses because that is probably the most important part. Being able to close for a loss means you can pull the trigger and follow your stop policy ensuring your losses are kept small and your winners are allowed to run. If you cannot pull the trigger when you need to then your losses will mount up crushing your profits.

Whatever time-frame or style you apply just be satisfied in taking something that way YOU WILL make a profit and as you get better you will get more of the price move. Worrying about what might have been is your emotional side working against you and will undoubtedly cause you to remain in a deal longer than you should hoping for a better gain or to turn a loss into a win but will just cause you pain and a greater loss or smaller profit.
 
 
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