Another new trader

Quote from ziyan:

I use a trend-following strategy and try to be reactive to stock movements.

I'd highly appreciate any helpful information I can get.
Thanks!
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This is the problem. Trend following requires you to prepare in advance. You need to anticipate and be ready to be positioned as price pivots from a pullback or breaks out of consolidation. A renewed demonstration of strength or weakness in the direction of the trend after a pullback or consolidation from the previous new high or low should sweep you into the trade for the next push.

You're probably chasing entries after price has made a good chunk of the next trending move. You're reacting to the continuation/consolidation breakout instead of letting price take you into the move early on.

I was in a chat room a while back and a new trader joined who kept reacting to strong trending moves. He'd constantly buy tops and get stopped out. He had the right idea (follow the trend), but he had no idea how to be positioned for the move itself.

Here's a site with the most common trend continuation and trend reversal patterns defined:

http://www.daytradingcoach.com/daytrading-technicalanalysis-course.htm

Good luck!
 
Quote from 1daytrader:

Why so condescending? We all have to start somewhere.
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Traders who actually make money aren't so condescending.

To the OP: Listen to mama nodoji. She knows her shit.
 
hey, just to let you know if you loose money when you first start dont sweat it, i lost alot of money but it was my best lesson also.

After you follow the market for awhile you may or may not get a "feeling" for its ebb and flow for example sometimes the Dow will open up 20 points but i can just feel like it'll sell off and end up down 100. Lots of my best intra-day trades come from higher openings and shorting them but you gotta understand your psychology and the market's psychology to have idea of what might happen.
 
This is just a site-related concern but I'm posting replies and I'm not finding them up on the thread when I'm viewing.
I really want all the contributors to know how grateful I am for the helpful advice and words of encouragement. Is this all being publicly submitted? And if so, why can't I see what I've written?
Again, thank you all very much.
 
Quote from ziyan:

swiftmike, do you mean that it's just a tough environment to be trading in right now?
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In an easy market its about 4- 6 months right now could be way longer or way shorter. Depending on your edge.
 
Quote from ziyan:

Thanks, thunderboltr. That sounds like some really good advice. I'm definitely going to lower the share sizes while I'm trading. However, some people say that paper trading will not be as effective since I will not see a reaction from the market from my trade. Is that a valid concern I should have?
Thanks again for your help.
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Paper trading is definitely easier than real trading, but if you're pretty new to day trading, it's still a great first step so you can learn a lot about stock movement without losing real money too fast (and not having actual money committed can also help the learning process by allowing you to look at each trade more objectively). Think of it as being in the minor leagues - once you have great success in the minor leagues, you can get called up to the major leagues again.

I posted this in another thread before, but I think the best thing for new traders is to closely watch the market intraday for 2+ years and wait until you've seen a whole range of different market conditions before committing a ton of actual money to trading. Focus primarily on watching the market and learning how stocks move on different kinds of days, and focus less on making money. During this time stick to just paper trading or trading small size.

Once you have developed multiple strategies for different market conditions and learn the signs for what type of market conditions are likely to occur that day, stuff becomes highly-predictable and it then just comes down to good risk management and execution. Once you've been consistently having something like 80% to 90% winning days over the long-term, then that's the time to start focusing on the making money aspect more. Until then your focus should be more just on the learning aspect.

If your primary goal initially is to make money instead of learning about how stocks move then it can be pretty easy to start thinking that winning trades are good trades and losing trades are bad trades. That's where new traders tend to run into trouble.
 
Prop trading firms like to encourage day trading because they take a cut of the commissions (generally speaking). Good prop trading firms don't make money from commissions, but from your success. They do this by teaching you their proven system.

If they didn't teach you something really good, they're just taking advantage. Save your money.

Also, your feelings are a result of being part of "The crowd." I've found studying crowd theory incredibly helpful in understanding how the price movement affects me and my ability to make decisions rationally. Also, it helps me trade better knowing what other people are thinking and feeling at any given time.
 
Before you risk a dime you need a proven , reliable, thoroughly tested methodology.

One of my favorite rules for newbies is this....

"You must win 12 out of 15 days before you can start trading real money." -handle123

This game isn't easy but for those who work hard and persist it can be done.

Be smart

Best to you,

Zr1
 
Quote from Zr1Trader:

Before you risk a dime you need a proven , reliable, thoroughly tested methodology.

One of my favorite rules for newbies is this....

"You must win 12 out of 15 days before you can start trading real money." -handle123

This game isn't easy but for those who work hard and persist it can be done.

Be smart

Best to you,

Zr1
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what's a reasonable time frame for a newbie? assume they work a full time job but they have time during work hours to work on trading as well. 2-3 yrs?
 
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