rahulprakash
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Discuss!!
Discuss!!
What's the "ONE" thing you wish you had help with as newbie trader?
- Thread starter rahulprakash
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ZaBu
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Exits.
Some of the accepted wisdom around exits is also not that helpful to a newbie without time under the belt.
Cut your losses short - that had me closing out too early, not giving the trade sufficient time to play out and booking an unnecessary loss.
Let your winners run - that had me watching some decent paper profits evaporate and getting stopped at BE or at a level much lower than the maximum potential of the trade.
Some of the accepted wisdom around exits is also not that helpful to a newbie without time under the belt.
Cut your losses short - that had me closing out too early, not giving the trade sufficient time to play out and booking an unnecessary loss.
Let your winners run - that had me watching some decent paper profits evaporate and getting stopped at BE or at a level much lower than the maximum potential of the trade.
Purple Brain
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How did you remedy those problems? How do you now allow just enough slack without pulling the plug to ensure you stay in only the good trades and exit without giving back too much of your profit?
timsk
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Ah yes, the ultimate catch-22 in life.
:cheesy:
NVP
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some good traders helped me on this EXIT thread .....
http://www.trade2win.com/boards/forex/117416-best-exit-strategies-forex-market.html
NVP
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C
cablemonster
yes but you can speed up the process by investing in a multi-monitor setup. 4 monitors cuts your 10,000 hours to become and expert down to 2500 :smart:
ZaBu
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It is still very much work in progress. My sense is the answer for me will be a combination of market experience and experience of the method. It has taken me a while to settle on any sort of method that feels right. Now I have the bones of a system I think I am seeing some progress. However, last time I thought that I got taught a lesson almost immediately.
There were multiple problems contributing to my early cutting. I believed taking lots of small losses was professional trading and so I was probably over-cutting in a misguided belief that I was trading like a pro. I was not making the best entries so determining where I was wrong was extremely difficult which compounded the problem. I lacked (and still do) market experience so the natural ebbs and flows were completely new to me but now I understand them a little better. I was trading other people's methods (nobody has their own method in the beginning) and I didn't fully understand many of the nuances. I have been working on all these things and many more but time in the market is probably the real key.
As for the second part, I am trying to trade in multiple lots to control risk and maximise profits. My current approach is to try and get the first lot on and when some profit is locked-in find a sensible second entry point and so on. I can then take lots off in reverse order to secure profits, with the first lot running the duration of the trade. At least in theory.
yellowfloyd
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Discuss!!
I think I would say what stock to trade; this can be a bit of a mine field. If you are new to trading a particular stock may seem appealing purely based on the fact that it fits into the sector you are interested in but you have no idea of the company’s background or trading history. With experience of the markets you would be able to avoid the companies that do badly on a regular basis and invest in the ones that have a positive history. You can get brokers that give advice but I would be careful because they will charge you more for this service, maybe read a book or two before you get started, that way you can be well informed and self-sufficient!
ffsear
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Totally agree. Exits have always been the hardest point of trading to me. I'm now very strict at choosing my stop loss and target point and its simply a matter of which one get hit first (with break even as the trade approaches 1:1)
Also wish I hadn't spent so much time messing around on lower time frames.
barjon
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Used to agree, but nowadays I think of my trading as an overall business with the individual trades not the be all and end all. I know how much I can stand to lose on each trade (my risk) which is the only bit I can really control. I also know how much I need to take from a trade when it goes the right way to keep my business profitable. I make sure I get it and anything extra is a bonus that I don't struggle too hard to get.
I don't much care if it keeps on going without me since I've got what I need. I'll probably get further opportunity for another bite if it does anyway.
rahulprakash
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so confusing...
For me this was the biggest problem too. There was so much I could do in trading world and it was difficult to choose. Everyone seemed to make it seem like what they do is the best and works. Exorbitant return claims. Wish I had the wisdom to not fall for those.
For me this was the biggest problem too. There was so much I could do in trading world and it was difficult to choose. Everyone seemed to make it seem like what they do is the best and works. Exorbitant return claims. Wish I had the wisdom to not fall for those.
