noob, successful so far

[Them_apples]

First off i'd like to introduce myself...

I'm a 2nd year marketing student, I developed a big interest in finance mid way through my first year after attending a WFG meeting (which seemed cheesy, but I liked the powerpoint) I figured I needed to understand how money worked if I wanted to make a lot of it.

Then came the topic of stocks....

previously I had saved all my cash working at Walmart part time - and then put it in a mutual fund (low risk). The return was minimal, but I liked watching the price fluctuate and started pin pointing the highs and lows for fun. (I think I made about 150 bucks, give or take - I really don't remember, all that money I put into school).

Last summer I worked full time for a moving company, hard work yes, but it payed a lot more than Walmart did and kept me in good shape. In the meantime I read through a few books, the intelligent investor, trend following and i'm currently on a contemporary version of "the wealth of nations". I got this book out after developing an interest in microeconomics last year. Obviously, the plan is to keep reading.

so, because I'm a poor college student (I only worked in the summer, I probably should get a part time job) my trading account is rather low. The positive part is I've only made money so far, through careful selection. I'd say I've grown my account about 400 bucks since mid summer, mainly through one longer term investment and one 3 day trend (Iamgold a while back).

that being said, i'm a noob! I've never "shorted" or held on to anything for more than half a year, I actually trade out of scotia Itrade which charges me 24 dollars a transaction (I should switch soon).

I like finance/investing/trading so much ill probably transfer over second semester and drop marketing all together (pretty much all my credits transfer, luckily).

I joined this forum to get better, and learn more.

 

[rsh01]

g/l...loads of good threads on here & on other sites, check out the faq section, search for money management threads & check out a few journals. following the trend is a good basis, though it has less strength on lower time frames (allegedly).

 

[NVP]

just keep learning and dont get to upset if you lose money here and there.....part of learning

good luck
N

 

[Them_apples]

I've only done one trade based on a trend, i'm generally an overly skeptical person - more of a realist than a dreamer. When I caught the trend the stock had already been going up for 4 days, I held it for about 2-3 days. It was a very cheap stock too, I think I made close to 25% in that short time frame. I'd definently do it again if I saw an opening.

I don't have much room for extreme risk, so my trend following cash account is low and my longer term account is a bit higher. Would be nice if I was working while in school!

Thanks for the replies

 

[timsk]

. . .The positive part is I've only made money so far, through careful selection. I'd say I've grown my account about 400 bucks since mid summer, mainly through one longer term investment and one 3 day trend (Iamgold a while back).

that being said, i'm a noob! I've never "shorted" or held on to anything for more than half a year . . .

Hi Them_apples,
Well done on your success to date and on your softly softly approach. Being a long only trader (for the time being anyway) and holding for the medium term - i.e. weeks to a few months - fits in very well with what the market has been doing this year. The attached chart is of the S&P500 and clearly shows a steady uptrend. The green line is price and the red line is a 10 day exponential moving average. As you can see, there are the inevitable pull backs and, certainly, if you entered into a position just before one of those, (e.g. at the end of May, beginning of August or late September), then your trade would have gone offside before eventually coming good.



The challenge that awaits you is how you will cope when the current trend ends and the market chops about in a sideways market. Worse still for the long only trader / investor is dealing with a bear market. You will then have to time your entries very well in order to trade the pullbacks (i.e. the instrument rises in value) and ditto for your exits to get out before the downtrend resumes. This isn't at all easy (understatement!) and those that can't or don't want to short individual stocks - often hedge their trades by shorting index futures or an inverse ETF - or something similar.
Tim.

 

[Them_apples]

great post, what do you mean by a sideways market?

 

[timsk]

great post, what do you mean by a sideways market?

Hi Them_apples,
Regardless of what markets or instruments you trade, there are basically three things that can happen:
1. Price moves up.
2. Price moves down.
3. Price chops about in a sideways fashion.
Investors want the market to do No.1. Traders want it to do No. 1 or No. 2 and don't much mind which. Very few people want to it do No. 3 because it's the hardest one to deal with. Sometimes, a market or instrument will bounce up and down within a very precise narrow range, enabling traders to sell the highs (usually referred to as 'resistance'), and to buy the lows (usually referred to as 'support'). This can work very well until there's a 'breakout' (or breakdown), i.e. price moves above or below the sideways range.

If you want to go into all of this in greater depth, check out this FAQ: Is There a Strategy or System that I should Use and where Can I Find it?
Tim.

 

[Them_apples]

I traded 40 shares of bank of Nova Scotia today, I don't have enough money to take full advantage of the dividend benefits. purchased at 57 dollars, sold at 63.30. either going to see where the markets are going (TSX for now) since my stocks have been growing for a while now, and the BNS shares are the highest P/E ratio of the Canadian banks (almost 13) not high by any means obviously.

either way, pocketed 200 more bucks, after order fees.

Is there a part of this forum that I can get into direct contact with experienced traders? via skype or facebook, even BBM.

 

[timsk]

Is there a part of this forum that I can get into direct contact with experienced traders? via skype or facebook, even BBM.

Hi Them_apples,
In answer to your question: no.
This is very much a community forum in which all members have an equal opportunity to share, learn and benefit. Like all forums of this kind, there is the private message (PM) facility and, additionally, there are some invitation only sub forums - but the latter are open to public view. Having said that, there are loads of experienced traders right here on T2W that you can interact with publicly; some may even have contributed to this thread!

Tim.

 

[rrayne20009]

Very inspirational especially for newbies just like me.I am also here in this forum to gain more knowledge in forex.I am fully aware that forex is not a quick-rich scheme to earn profit so enhancing my knowledge and skill in trading is my priority right now.

 

[Them_apples]

Very inspirational especially for newbies just like me.I am also here in this forum to gain more knowledge in forex.I am fully aware that forex is not a quick-rich scheme to earn profit so enhancing my knowledge and skill in trading is my priority right now.

this is sort of relevant for inspiration...

I've been a huge boxing fan for most of my life and follow the sport and have boxed myself as an amateur. You can apply the strategies of war and boxing to trading, which I have done myself.

You don't look for the knockout, it if happens it happens. In the meantime you use your skill and play smart - looking for the KO will just open you up to risk yourself!

Oh and always learn the fundamentals first! couldn't be more true, even the boxers who fight with their hands down, they know the fundamentals!

 

[yellowfloyd]

First off i'd like to introduce myself...

I'm a 2nd year marketing student, I developed a big interest in finance mid way through my first year after attending a WFG meeting (which seemed cheesy, but I liked the powerpoint) I figured I needed to understand how money worked if I wanted to make a lot of it.

Then came the topic of stocks....

previously I had saved all my cash working at Walmart part time - and then put it in a mutual fund (low risk). The return was minimal, but I liked watching the price fluctuate and started pin pointing the highs and lows for fun. (I think I made about 150 bucks, give or take - I really don't remember, all that money I put into school).

Last summer I worked full time for a moving company, hard work yes, but it payed a lot more than Walmart did and kept me in good shape. In the meantime I read through a few books, the intelligent investor, trend following and i'm currently on a contemporary version of "the wealth of nations". I got this book out after developing an interest in microeconomics last year. Obviously, the plan is to keep reading.

so, because I'm a poor college student (I only worked in the summer, I probably should get a part time job) my trading account is rather low. The positive part is I've only made money so far, through careful selection. I'd say I've grown my account about 400 bucks since mid summer, mainly through one longer term investment and one 3 day trend (Iamgold a while back).

that being said, i'm a noob! I've never "shorted" or held on to anything for more than half a year, I actually trade out of scotia Itrade which charges me 24 dollars a transaction (I should switch soon).

I like finance/investing/trading so much ill probably transfer over second semester and drop marketing all together (pretty much all my credits transfer, luckily).

I joined this forum to get better, and learn more.

Hi

Good luck in your journey into trading. One piece of advice for someone who is new to it is to keep your feet on the ground when things are going well. It’s very easy to get carried away when things are going right but it’s tough to drag yourself out of the rut when things going the opposite way. Use risk management wisely, have levels in your mind from the outset in regards to where you will exit should the trade go the right or wrong way.

Hope you make a success of it fella

 

[vettelsfinger]

Hi Them_apples,

It is great to see you doing well as a beginner. I used to have a stock portfolio based on FTSE-AIM stocks, did not go so well as I caught the downturn in 2011. So my advice on this would be to only advance to the riskier stocks once you are ready and have some blue-chips possibly as a long term hedge. It seems as though you have it figured out so far though.

Like you I am also new to this forum and I would like to learn more about forex and other non equity trading instruments, hopefully I can learn enough to start making some real gains in the new year!

Tom

 

[Them_apples]

Hi Them_apples,

It is great to see you doing well as a beginner. I used to have a stock portfolio based on FTSE-AIM stocks, did not go so well as I caught the downturn in 2011. So my advice on this would be to only advance to the riskier stocks once you are ready and have some blue-chips possibly as a long term hedge. It seems as though you have it figured out so far though.

Like you I am also new to this forum and I would like to learn more about forex and other non equity trading instruments, hopefully I can learn enough to start making some real gains in the new year!

Tom

well I sold my "blue chip stocks" because although they were growing I didn't have as much leverage. I generally don't buy anything unless I have enough logical evidence as to why it should go up, it's worked for me so far, although I've made small mistakes, mistakes that wouldn't have cost me much if it wasn't for the extremely high commission fees of my bank (I've since switched to virtual brokers).

I haven't tried any shorts yet and I'd have to figure out how to get margin and how to get approved (if you have to be).

The mistakes I made were really just errors with my entry, me getting overly excited from some of the money I've made and jumping on the next prospect that's been lingering in my mind for a long time. I still think I can make money on it, just the time isn't right.

I'd consider this year a learning experience, I'm confident I can come out positive or at least break even. Maybe I'm being overly optimistic seeing as a lot of people do lose. I believe the Key is to understand whats going on in the market before making a trade, I can't possibly see how someone could trade every day and make money.


appreciate the reply @vettelsfinger, some good advice also. If my account was bigger I would most certainly do that. In fact i had a dream about it. The comfort of my higher-quality investments taking a lot of pressure off of trading.

 

[vettelsfinger]

well I sold my "blue chip stocks" because although they were growing I didn't have as much leverage. I generally don't buy anything unless I have enough logical evidence as to why it should go up, it's worked for me so far, although I've made small mistakes, mistakes that wouldn't have cost me much if it wasn't for the extremely high commission fees of my bank (I've since switched to virtual brokers).

I haven't tried any shorts yet and I'd have to figure out how to get margin and how to get approved (if you have to be).

The mistakes I made were really just errors with my entry, me getting overly excited from some of the money I've made and jumping on the next prospect that's been lingering in my mind for a long time. I still think I can make money on it, just the time isn't right.

I'd consider this year a learning experience, I'm confident I can come out positive or at least break even. Maybe I'm being overly optimistic seeing as a lot of people do lose. I believe the Key is to understand whats going on in the market before making a trade, I can't possibly see how someone could trade every day and make money.


appreciate the reply @vettelsfinger, some good advice also. If my account was bigger I would most certainly do that. In fact i had a dream about it. The comfort of my higher-quality investments taking a lot of pressure off of trading.

Hi Them_Apples,

I think a truly balanced portfolio is a dream for most of us, hopefully your trading will come good enough to work towards that at least.

From my limited experience I don't think you can ever understand the market, as the dynamics appear to change frequently, just understanding a part of it relevant to you may help. I have also been doing something similar as I have honed the currency that I want to trade and the type of trades I want to place (still in progress) but I feel the path is clearer for getting rid of some of the noise that I was presented with at the start.

I have also made mistakes so far but I am learning to embrace them as part of the learning curve and see the bigger picture. If you treat trading with an end goal amount (e.g. £10k in a year) rather than a daily profit target I think the mistakes will help to achieve the goal in the long run.

I changed from traditional investments because of a lack of shorting opportunities through my broker (TD Direct Investments). The only way to short in my eyes is by using some of the riskier platforms such as CFD's etc but this requires more margin (although no approval over your existing details).

I hope this helps

Thanks
Tom