By "quick small Stops" you mean to keep your Stops tight?
For all the shit you cop here, its starting to look like you're one of only a few profitable Traders here atm Ken.
Advice to new a trader
- Thread starter qlai
- Start date
For all the shit you cop here, its starting to look like you're one of only a few profitable Traders here atm Ken.
Good Morning deaddog,
I believe having a well written out plan that is reviewed by professional trader of experience is a good idea as well. Good comment.
Old adage war-battle adage about plans are tossed out at first contact with the enemy because the enemy has a say on what will happen. Make no mistake, the markets have a say in what will happen.
Plans are great, but the ability to adapt in real time is required. Plans that do not take this into account are worse than useless. Furthermore, plans that are either overly simple or cannot be followed because you cannot follow them are also worse than useless. Plans also have a fatigue factor and a time sensitive factor.
Please don't take this as "plans are useless". They are essential, they just need to be executable, sustainable, and complete. Complete in the sense that they contain the risk while seeking the optimal profit.
Can you answer my question please Ken. What do you mean by "quick small stops"? Do you mean tight Stops?
Right.... specifically I use .04 - .2 for daytrades 200-500 shares of stocks/etfs priced $10-$40/share.... for swingtrades I use roughly $2 stops, or 2day low, whichever is smaller.
Great advice. I remember reading similar stuff in trading books 15 years ago.
Knowing it and putting it into practice is very different, though. I imagine a few blown accounts and many more years of experience is needed before learning these lessons.
Best advice so far.
Consistently taking money out of the market on a daily basis is a professional activity and something which is for the few and not for the many.
Even if you have a good run you can easily give it all back if you get sloppy and undisciplined for even just a few moments.
A few people in this thread, me included, know this first hand.
Focus on key skills, have a basic understanding of macroeconomics & asset pricing, and spend a lot of time looking for non-beta sources of returns. Once you have determined that you have found some type of harvestable return, build a due diligence process to avoid catastrophic losses.
No I'm telling you I plan to buy stocks that are going up. And like Will Rogers if they don't go up I don't buy them.
The thread is advice to new traders. I advise them to have a written plan and follow it.
If you are an experienced trader and don't need a plan then more power to you.
If a plan doesn't work then you can always change it. For a new trader it's a place to start. Most won't make the time to do that.
- start with a small account because you are going to lose.
- I've noticed that just about all of the people who make money in this business...were in this business professionally for years before doing their own thing. This is meant to be discouraging.
- The amount of work that it takes to be a "trader" is far and above more than any starting retail thinks. Its going to take much more grind and discipline than people realize. Easy is not an option.
- You wont be making millions trading from your laptop on a beach in a few years...you are more likely to be trading your mouth for crack behind a Waffle House dumpster.
- Day trading is boring as shit. grinding it out in front of a screen every day just sucks IMO.
- you aren't "the one", you aren't special or destined to extract millions from the market.
- I've noticed that just about all of the people who make money in this business...were in this business professionally for years before doing their own thing. This is meant to be discouraging.
- The amount of work that it takes to be a "trader" is far and above more than any starting retail thinks. Its going to take much more grind and discipline than people realize. Easy is not an option.
- You wont be making millions trading from your laptop on a beach in a few years...you are more likely to be trading your mouth for crack behind a Waffle House dumpster.
- Day trading is boring as shit. grinding it out in front of a screen every day just sucks IMO.
- you aren't "the one", you aren't special or destined to extract millions from the market.