Is it possible for a new trader to survive in this market

R

roumeo

The market is really tough. I heard that new traders can only be allowed to long, and cannot do short. If it is true, how can those people survive in this market. Even if newbies could get the right direction everytime, but the profit cannot cover the commission. Just as I did these days. So tough. The stocks move very carefully. And some of the stocks donot even move. SO how can people do trading in this market if everytime people can only trade 100 shares?

Roumeo
 
Originally posted by roumeo
The market is really tough. I heard that new traders can only be allowed to long, and cannot do short. If it is true, how can those people survive in this market. Even if newbies could get the right direction everytime, but the profit cannot cover the commission. Just as I did these days. So tough. The stocks move very carefully. And some of the stocks donot even move. SO how can people do trading in this market if everytime people can only trade 100 shares?

Roumeo
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Some things never change. The markets are tough. The markets are always changing. Trading never has been easy. Your statements are probably related to starting out at a prop firm. They want to see you can be profitable with 100 shares before they allow you to trade more. That is just common sense. If you can't cut it with 100 shares then you will do worse with 1K shares. Do you really believe the bleak picture that you paint in the paragraph above?
 
Looking at your posts in this and other threads it seems to me you are looking for some iron clad guarantee that it's possible to make money trading. It IS.

I don't want to discourage you from asking questions - it's a GREAT way to learn - but I would urge you to shift the focus of your questions. Ask a better question, get a better answer.

If you wait for all the lights to turn green before you head off down the street, you're not gonna get anywhere.

Daniel

PS - Go Kings!
 
Originally posted by roumeo
The market is really tough. I heard that new traders can only be allowed to long, and cannot do short. If it is true, how can those people survive in this market. Even if newbies could get the right direction everytime, but the profit cannot cover the commission. Just as I did these days. So tough. The stocks move very carefully. And some of the stocks donot even move. SO how can people do trading in this market if everytime people can only trade 100 shares?

Roumeo
More...

I think every "market" is impossible for most newbies and not so newbies too, thats why you will always hear more bitching and moaning than anything else. If you have a plan stick to it, if you dont have one, get one.

Brandon
 
I think its important to realize that even in a bear market you can make more money going long than short. The days with the largest increases usually occur in a bear market because of oversold conditions plus a drastic increase in volatility compared to a bull market.
 
If the account is small, then :

1) You HAVE to be very selective with your trades, because otherwise, the more you trade, the more the commission you pay, the more the account erodes.

2) You need to carefully plan your trade, some proper money management is needed. Calculate your risk/return so that you know in advance the outcome of each trade.

3) Once you have done all that have some guts , and TRADE. And after all, even if we assume that you have absolutely no knowledge, this is a 50/50 chance after all. It either goes up or down.

4) When you realize that stocks don't move, then you might be better-off being TOTALLY out of the market
 
The stock market has certainly changed in that the price of stocks has fallen dramatically. Theres quite a difference between trading SUNW at 70 and at 7.
 
a new trader in this environment has the same chance to survive than in previous periods.
the issue is this : in the previous period everyone was a trader.. well at least they thought so.
it was a great time because so many thought that way. we had a nice pyramid scheme going (well mostly from the funds anyway, but traders helped).

we are still in the same game. only the level and direction is different. the game did not change.

but amateurs will get killed, that's for sure.

so a rookie must be very professional. use pro methods (as opposed to betting on sectors, hype or news). use good broker and software. and as others pointed out, know precisely in advance what he is supposed to do or not.
there must be training..

let me make a comparison : during the last part of the bull market, everyone could pretend he is a space shuttle pilot. and the thing was going up and up.
now, reality is back : you just can't jump in and fly this thing.
still, too many traders wannabe just expect they can do it (without any serious training, just reading a few books and use their 'instinct'). well, it does not work for the shuttle, it does not work for trading (everything being equal, of course trading is not rocket science).

still, can a new pilot become a shuttle pilot ? of course yes. even now.
a new trader can make a good living in this environment too. the recipe is the same : very good training, knowledge and practice, practice, practice. NASA has simulators too you know :)

tntneo
 
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