Nasdaq Lv II is the Final Answer...
I definitely agree nobrainer! The stop-loss is the secret to success (believe it or not, it was Darvas' "How I made $2,000,000 in the stock market" that seemed so logical that I just HAD to become a trader. And he was so right...)
Another thing I agree with is to start small - I like to stress here that you DON'T have a 50/50 chance to win/lose!
Because if you win 50%, you're up 50%, but it only takes you a 30% loss to lose it again. - Besides, if you lose 50% of your capital, you need to make a 100% profit to get it back! Can you do that? Maybe on a single trade?? Well if you try, you're in the wrong business mate! To be honest, I don't know how to make a 100% on anything on a trade, but I know that if I make a mere 2% a day on my trading, I'll be cruising on my yacht forever. Why?
Well, GET THIS INTO YOUR HEAD NEWBIES! : It's not about return, it's about consistency! If you can make a consistent
net profit of .5% per day - you're made! 0.5%/day on a $10,000 compounded? You'll be a millionaire in less than 3 years! 1%? =>$15 million in 24 months. Yay. Calculate yourself! Can't afford such little returns to cover your lifestyle? Don't trade until you can then - you can't trade "scared"! Questions? So, set the tighest stops (beware the stones flying : I love TRAIL orders!) and there's nothing to worry? Theoretically.
Another tip: NEVER risk more than 1 or max 2% of your capital (not equity) on any single trade. I'd say this as a day trader, but this even applies for swings! If you set loose stop losses (such as 8% on a swing) -then, for chrissake, DIVERSIFY!!! Get 5, 10, 15 stocks, whatever, but keep the 2% max rule! Otherwise you'll lose in the long run. This is crucial! (Hey P.S: All those opt and future traders close your ears here, I love the S&P's, too
Also, I agree with Naz and machine - If you want an edge, learn all you can about TA, have some live-candles & indexes running on a coupla side-screens to watch the overall trend - But HEY - Learn about Nasdaq Level II and you'll be way ahead of all that TA b.s.! TA is, after all, hypothetical nonsense that only works because so many ppl believe in it! No, I don't believe in market sufficiency! But TA can only help planning a strategy, but NQ Lv2 is tactics! Learn the difference between strategy and tactics! -When you're sitting in an F-16 TomCat it's fine to know your great flashy waypoint-map and assault schedule, but how about that IR Cruise Missile hovering into your glowing exhaust? Happy Birthday!
You either gotta fire a few big derivatives now or a hunch of stocks (I'm talking 100's of thousands even in some of the smaller stocks!) or get your a*s outta there. "Feet wet" they say... Time to get out! Get your head around Lv2 and you'll be RIGHT THERE! No TA, no guesswork, no fundamentals (did anyone ever believe anyway?) Some may say this is for 'scalpers' and such... Well folks this is the closest you get to reality and it works for finding better daytrading entries, too.
Lv2 is where the market "makers" make the cash. And, as they say, if you want money, you have to go where the money is... I actually genuinely believe this is the safest approach to trading there is. Learn Lv2 and never worry again. Don't start trading before. And don't trade UK Lv2 (sorry pommies, but hey, I'm in Australia and we've got the same *tupid sytem... lame Lv2, lame volatility, stamp duty...) I trade U.S markets. Trust me. Did anybody mention there's too many good players in the U.S markets to succeed? Rubbish to me!!! I personally know that the U.S has got the highest quota of of 'dumb' ppl you could imagine - that applies for many of their traders, too... Besides so many ppl worldwide trade it that don't understand U.S markets. You can make heaps of cash there... UK and Aussie traders are just too smart to compete with, right? =) Am I writing too much of a novel here? Sorry...
Anyway, to clear this here: There is no trading system that works - for YOU! Except your own! If there was one, everybody would be using it by tomorrow morning! But why use a system anyway if you can have Lv2? LOL just kidding.
Well folks I will end this here by saying: Become a MASTER of the market long before you test it with real money! I mean MASTER! Are you the guy everybody asks for financial advice? Have you written a book about trading, maybe yet unpublished till tested in real life? You darn should be able to! I studied days and nights for years, until I would become #1 of the day and #1 of the week and tops of the month CONSISTENTLY at VSX(virt*al*tockexch*nge.com). And that was an ultra-lame execution swing-server for "investors" (giggle a little)... Then I remotely considered trading actively... As Einstein said in my favourite quote: "Genius is 99% perspiration and 1% inspiration."
I started learning at 15. I am now 21 years old. Call me a prodigy and I'll punch your head in. I've worked hard. Very Hard.
Hope this was a little inspiration to a few of yous and hope I didn't reveal too many secrets
... Give me a rating