Sorry if this is hard to read. I do not edit nor correct. I can now see that my typing pace and my computer pace may screw it up a little. Please understand that some of the crap on here is something I would rather forgo correcting.
Any advice for a beginner short-term trader?
- Thread starter tian
- Start date
Sorry if this is hard to read. I do not edit nor correct. I can now see that my typing pace and my computer pace may screw it up a little. Please understand that some of the crap on here is something I would rather forgo correcting.
I find this to be bad advice - what are you suggesting, that he trade counter-tend, let his losses get big while taking small profits, sell support and buy resistance?
What an arrogant, misleading statement. So much for helping a new trader get on the right track.
One thing about platitudes - they are based on enough fact that they have been repeated often enough to become platitudes.
Trends usually continue, reversals happen at support/resistance levels and proper risk/reward very important - why would you tell someone to "not listen to this?"
I only wish I had been able to EXECUTE these platitudes as a brand new trader. Would have saved me $30K.
If a new trader (or old one) can follow these and EXECUTE them, they will probably be profitable. (Unless one is strictly trading counter-trend retracement or fades). If not, then they won't.
Like on my days when I trade against these platitudes.
Paul
Most studies suggest that 90% percent loose. However, according to the thread below "How much do you REALLY make trading?" An astonishing 68% break even or make money. http://www.elitetrader.com/vb/showthread.php?s=&threadid=14987
E.T. has many great comments from some great traders and it has its fair share of want-to-be traders, so take it all with a grain of salt.
After you run out of the bank loan money.
My suggestion is do not borrow any more money from friends or family , cause they will not be friends for long and disrupt the family relationship.
I would take the $2,000 to $10,000 go to Vegas, you will have a GREAT TIME, they will comp the room, free drinks, you can get some, if you want it and have wonderful memories. Chances are you will also go on to lead a normal life.
E.T. has many great comments from some great traders and it has its fair share of want-to-be traders, so take it all with a grain of salt.
After you run out of the bank loan money.
My suggestion is do not borrow any more money from friends or family , cause they will not be friends for long and disrupt the family relationship.
I would take the $2,000 to $10,000 go to Vegas, you will have a GREAT TIME, they will comp the room, free drinks, you can get some, if you want it and have wonderful memories. Chances are you will also go on to lead a normal life.
Tough market, but you are starting off with enough sense to swing trade (not daytrade). This will give you a much better chance these days, and as you said will allow you to go to school while trading small and learning.
one of two things will occur when you begin...
most likely you will lose it all... or you may hit a good market period and make a decent amount which will be the kiss of death and lull you into believing that this is easy and you can forgo the learning curve or minor leagues or college, and go right from high school into the NBA/MLB.
Sure, some do... but most cannot.
The good thing is that when you do blowup and/or quit at least it will be a young age and you can return again some time down the road... with your added knowledge and hopefully more realistic insight, to try and trade successfully again!
There is no shortcut for paying dues. Anyone telling you that is forgetting their reality in the beginning, or doesn't know what they are talking about.
Jack,
Thanks for your response.
I think it would be great if you just set up a webpage where you could share your software with others and not only with me and where you could provide other hard evidence that by using your methods one can make $30,000 and more depending on one's level of expertise. When you do this, I will be the first one to say that I was wrong about questioning the credibility of your posts. But until then I reserve my right to say things I have said so far.
I am a physicist by training and so I do not tend to be as much impressed by convoluted phrases as by straight facts. In fact, in my carreer I have found out not once that people who need to resort to verbal fireworks fall short on contents.
It's great that you want to share your knowledge with others. I have no problem with that. However, there is a difference between insights and facts. We already know your insights even if most of us somehow fail to grasp them. What we really would like now are concrete material facts that you alluded to when sharing your insights. If you do not provide them, then I think that we will be entitled to believe that they do not exist.
Best,
Wally
P.S. That's my last post in this matter. I have spent way too much time on that and have other things to do. However, I will be happy to return to this issue once you provide more evidence that your methods work and I mean the evidence of the kind I asked for. Otherwise, I see no point in continuing this discussion.
This is some great advice. Your worst enemy is the feeling of "missing out". You've got to test your ideas first, in two ways:
backtesting-- PROPERLY DONE-- and paper trading. If you have a good trading method, it will always work in the long run, no need to jump in right away. The main thing is, you WILL experience drawdowns, and until you know how much to expect, it is best not to trade real money.
Also on "platitudes" like "ride your winners" etc: these things are all true at some level, but notice, there is never any exact advice on when to cut losses, how long to ride the winner, etc. THAT's what you need to figure out, as it applies to your trading method. In other words, the devil's in the details, and the details depend on the particular trading method.
1. You can start with 2000 dollars, you must manage your trades.
2. Do not risk more than 10% of your capital on any one trade. For example, if you have 2K then your maximum loss should be no more than 200.
3. If you take a loss, then reduce your lot. For example, if you now have 1800, then your maximum loss should be no more than 180, and so on.
4. Learn charting patterns. 2b, 2t, 3b, 3t, all candlesticks.
5. Trade with a simulator for 2 months. Do not trade more in the simulator than you would in real life.
6. Be patient. Patterns repeat, and there are opportunities every day. If you miss an opportunity, DO NOT CHASE IT. This is poor trade management.
7. Educate yourself. This is where most of your money should be spent. You must learn as much as you can before you go to the simulator. This job is like any other: Theory, Practice, Actuality. IN THAT ORDER
