What's the "ONE" thing you wish you had help with as newbie trader?

ZaBu

Member
50 17
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.
 

Purple Brain

Experienced member
1,613 179
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.
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?
 

ZaBu

Member
50 17
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?


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

Active member
109 2
? :mad:

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

Senior member
2,192 460
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.

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.
 

ffsear

Senior member
2,192 460
Not that i'm saying you can't make money on lower time frames. I know people who do very well using them. I'm just too impulsive, low time frames are a minefield for me.
 

barjon

Legendary member
10,674 1,796
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.

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.
 
  • Like
Reactions: Rooster34

Steve

Well-known member
437 108
Not falling into the trap of believing that a £5000 course would tell me all I needed to know and then continuing to blow money on useless education from so called experts.
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock