Are you ready for this....?

[DTK]

Originally posted by new2trading
Good info. I was wondering what most of you feel is the number 1 mistake new traders make?

Carol

having presonal performance expectations that are too high and taking on too much risk as a result

 

[ctrader]

Originally posted by DTK


having presonal performance expectations that are too high and taking on too much risk as a result

yep. Happened to me. Thought I had a kick ass strategy. Went directly to dow futures. Pulled the plug on the strategy at -10% capital after a few trades.

Now I am trying to trade DIA. Less exciting, not making much money, but not going to blow my whole wad if I sneeze wrong.

 

[daniel_m]

Originally posted by new2trading
Good info. I was wondering what most of you feel is the number 1 mistake new traders make?

Carol

jumping in and trading with real money while still being totally clueless about trading, figuring you'll just pick it up as you go along. freakin' insane, yet just about everyone does it.

 

[wild]

useful websites for beginners ... imo :

www.funphone.com/shorty/nl.html ... general investment advice

www.funphone.com/shorty/nl17.html ... daytrader´s glossary

regards

wild

 

[dgabriel]

Bad plan. Don't trade from home at the outset, Frankly, you will end up getting eaten alive if you are just starting out. If you have 50k to blow on the solo school of hard knocks, well, maybe.

You need a mentor who will teach you to trade. Alas, this is almost impossible because there are few good traders available for this.

Try a prop or retail firm and tell them what you want and what you need.

 

[WDGann]

Ask them if you can hang around for a few days. Check how the traders are at the prop. firms. Just because it's a prop. firm it doesn't mean there's gonna be good traders.

 

[Long-Way-To-Go]

Originally posted by new2trading
I was wondering what most of you feel is the number 1 mistake new traders make?

Originally posted by daniel_m
jumping in and trading with real money while still being totally clueless about trading, figuring you'll just pick it up as you go along. freakin' insane, yet just about everyone does it.

Good point, but what's the alternative?

I've seen dozens of people around here ask for help and they've either had their heads bitten off or were told each person must develop his/her method on his/her own (for a variety of reasons).

For the most part, books are worthless. Many live out of driving distance of a reputable trading/training firm. Finding a mentor that's really willing to teach you the ropes is nearly impossible (especially if you want one that lives near you so you can look over their shoulder).

Just with the obstacles listed above, it's no wonder 80%-90% of traders fail. Jumping in while you're still clueless is very dangerous, but that's the only option some of us have.

 

[Aaron]

Originally posted by Long-Way-To-Go
For the most part, books are worthless.

I agree. But all it takes is one good one.

Not sure how you evaluate trading books without any trading experience, though. I guess the thread in the Resources Forum on good trading books is a good place to start.

 

[zcar]

teachers is experience. How do you get it?

by doing it the old fashioned way: trial and terror.

passion, discipline, getting an edge and exploiting it, helps a lot.

 

[daniel_m]

Originally posted by Long-Way-To-Go


Good point, but what's the alternative?

(this was regarding my point that people jump in while still too green.)


if could do it all again....i would come to ET, read all i could from the site (there is REALLY GOOD info here, you just gotta dig for it...and it's easier to find if you know what you're looking for, which isn't always the case for a newbie)....read books on the recommended list.....bug the hell out of people who sound like they know what they're talking about for information........
have a THOROUGH understanding of risk and the concept of expectancy.....and just WATCH the market for at least six months....and preferably a year....THEN actually start with small lots and try out your ideas with real money....

seems like a lot to go through....and most people are probably chomping at the bit to place some trades.......BUT, if you're gonna be serious about trading, it seems VERY STUPID to me to come in and waste the customary 5-20k on hard knocks (and even then, depending on what kind of person you are, maybe still not learn anything..)....