New Trader Need Help !!!

J

joytrader

Dear all the seniors,

I am a rookie day trader, I am not a scalper. I got very confuse with all the techniques and not even know where to start, I do not know where my real problem is??? I tried retracement, s/r, time reversal, SMA.....Nothing works.

I have been doing this trading for about 3 months...Sometimes wining , but most of the time losing ( I got very tight stop)..I read alot, and spend all my time studying the market. I just make myself breakeven the most...very fustrated although I keep pushing myself not to give up but it seems no end in sight.

I focus mostly on Oil&gas and biotech stocks. I tried hot technology before, but seems to fast for me.

Please show me some light!!!!!!

Thank you.




 
There is so much more then when and how to enter the markets:

Ruth Roosevelt says trading successfully is:
(entry + money management + transaction cost) x You (Your state of mind)
http://www.ruthroosevelt.com/

Do you have a clear defined strategy? When and how to enter and exit the markets. Do you writing a trading journal are you follow your rules?

so long
 
Originally posted by EnterLong
Do you have a clear defined strategy? When and how to enter and exit the markets. Do you writing a trading journal are you follow your rules?
More...
This is absolutely the most significant advice anyone can give you. Formulate a plan you believe will be effective and you will be comfortable with. Try to create a set of rigid rules that you will stick with until you develop the ability to formulate a more nuanced approach, if necessary. Trade that plan with small size, just enough to make it mean something but not enough to provoke fear. Record each of your trades, your emotional state, your observations of the market, and your conclusions regarding the outcome. After a significant number of trades, re-evaluate your system, yourself, and your suppositions regarding the market. Repeat until profitable.

While I personally believe there are some important technical fundamentals, I know a number of successful traders with very different systems/styles. They found what worked for them. I know this is the same old shit you’ve heard elsewhere, but take it to heart. Remember, you’re new. Give yourself time. It took me at least a year before I felt okay with where I was. Absorb what you find useful, work at it systematically, and revise your approach as needed.

P.S. Personally, I am not a tight stop guy, although that is relative. I like to use a measure of volatility that puts me outside the noise. I’m sure others will disagree and they will be right for their style.

 
I would say you have to figure out what works for you.
Every trader or wanna be trader has a magic button. The
problem is when we "try on a hat different sizes off".
What I am saying is that the preconcieved notion was and
sadly is today that the place to make money is daytrade
nasdaq. It worked for some and still works for some (check
out the Market Makers) but the Happy Days are over for the
naz daytrading. Find something else now that works and works well for you. Don't be boxed in by the internet hype
and brain washing from the "so called trading community".
They all sing the same old song. Latly, don't panic and
buy all sorts of extensive tools and seminars.
Good luck to you.
 
IMHO, simplify, simplify, simplify. Remove as many things as you can.. indicators, programs, trading rooms, strategies, etc. The less you have to focus on and digest, the better off you will be. Do one thing and do it well. You will know your system is optimized when there is nothing else you can safely remove.

 
sounds like you need to back off a bit and get more knowledge. The book review of this site has a neat selection

The only thing that I can add to the above suggestions is

MONEY MANAGEMENT !!!!!

set a risk tolerance that is right for you, try to not go above 2% per trade,

and remember you do not have to trade just to trade

only enter the arena when you have an edge

wish you the best
 
joytrade =)

i can understand what you are going through because i have been there.. when i first started trading nasdaq stocks i had alot of ideas but i couldnt seem to make them work.. i had read alot of books on different strategies but had a hard time coming up with a game plan of my own..

first i tried scalping larger stocks.. csco seemed like a nice thick stock to trade.. and i lost and lost and lost.. a large bid would appear, i would buy 1000 shares.. the bid would disappear, downtick 1/8 and i would bail - 3/16.. frusterated, i would try again only to face the same small defeat..

then, i joined a chat room and moved on to being a momo trader.. "stocks are like a bouncing ball" and "a lower price creates value, and value brings in buyers" is what i was taught.. so i became much more diverse in the stocks that i traded, after all why should the MM's in CSCO get all my money?.. i was trading using ideas like "JNPR sold off 3 points.. now there are bidders coming in.. it must be bouncing.. ".. and i would buy.. and it would tank, and i would stop out.. or maybe CIEN was flying high for the day and i would short it because it looked like it was stalling.. i cant tell you how much money i lost buying "bottoms" and trying to short "tops" intraday.. i dont even whisper that number to myself.. all i can say is that its a good thing im single, because i bet my wife would have killed me if i had one..

i went on to try other things.. but eventually found some people at realitytrader chat room that helped me understand what i was doing wrong.. most of my problem was in the way that i approached trading and not only in my technique.. there is a tendency among traders to think that the secret of success lies in having a newer and better, more complicated system.. but the greatest challenges that most of us face are inside of ourselves.. when i first started as a trader i was trading for spreads on the nyse.. 2000 shares for 1/16.. as my account grew (i only started with 8k) i increased my share size until i was trading 5000 shares per trade.. i only had one losing week, which was my first week.. and two losing days in a row were unthinkable.. so from nov 99 to about july 00 i had never really experienced loss.. around the end of august, i decided to switch to trading the nazdaq because i knew that decimals would kill the spreads on the nyse.. and immediately i was introduced to the worst side of myself.. i became fearful and impulsive.. personal issues not related to trading were really wearing on my self image and i was unconsciously acting that out in the market.. threei, dbcooper and i had a long talk in rt one night after i had taken a particularly painful loss.. they recommended that i focus my attention on getting my thinking right instead of scrutinizing a new technique.. they recommended "Trading in the Zone" by Mark Douglas as a good place to start.. slowly my thinking has changed over the last couple months and so has my trading.. ive reduced my strategy to only intraday breakouts and breakdowns.. and for the first time since i stopped spread trading i feel in control again.. i have more confidence and most important, i trust myself to do what needs to be done without hesitation.. sometimes i do have relapses and slip back into the old destructive habits, but now i can identify them early and work to change them..

my advice is to first buy "Trading in the Zone".. read it.. and read it again.. second, find someone who is making money consistently in the market that is willing to share their strategy with you.. someone who will also be around to help you understand it when questions arise.. there are some good pay services out there but be careful of trading rooms where the "guru" isnt a trader.. i am a member of realitytrader and i am very happy there.. third, be willing to do whatever it takes.. the price of success is different for us all.. i once heard a story about a covered wagon that was found out in arizona.. the type that was used by those brave souls who risked everything to cross the US in hope of a better life.. in the wagon there was a plaque.. it read.. "..the cowards didnt even start.. the weak died along the way.. only the strong made it through".. and such is the lot of traders..

good trading =)

-qwik

 
Thank you all very much!!!

I never thought that anyone would like to reply to my 'stupid' question. Thanks for sharing with me all your experiences. I will try to simplify my strategy.

Personally, I traded with only a small amount of shares, 100...I want it to prove it is profitable before putting in more shares. Yes, I do keep trading journals for my every trade.

Thanks, qwiktrade for your lenghty suggestion. I will try to get hold of the book and start improving myself. I did check out the reality trader area not long ago, the funny thing is that there are so many 'web trading' tutorials. It's sometimes hard to peak the substances from those 'B_Shit'.

Many thanks again, hope you all don't mind if I still stuck in the 'tunnel'..

 
quiktrade,

Great post, great to know someone is out there that would put that much time and effort into guiding another trader.

DJC
 
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