New Trader tired of breaking even - Help!
- Thread starter Deb Trader
- Start date
I'm amazed at how many replies have been given in response to my post. Thanks to everyone who has posted helpful replies. You all are very generous and informative.
I'd love to read more if you have more to add.
- Deb Trader
I'd love to read more if you have more to add.
- Deb Trader
these are frustrating times for traders, no matter what anyone says.
what comes to mind when I read your post is a quote by, I think, Michael Marcus. He said, "you have to follow your own light."
Noone can really tell you what to trade. Watch the market that interests you. Eventually you will get a sense of the activity, and you'll say things to yourself like, "I need to buy this here."
Be prepared to be wrong and don't beat yourself up for it. It's part of the continuing education of the trader.
Oh, and be prepared to be right, as well. But that's another thread.
what comes to mind when I read your post is a quote by, I think, Michael Marcus. He said, "you have to follow your own light."
Noone can really tell you what to trade. Watch the market that interests you. Eventually you will get a sense of the activity, and you'll say things to yourself like, "I need to buy this here."
Be prepared to be wrong and don't beat yourself up for it. It's part of the continuing education of the trader.
Oh, and be prepared to be right, as well. But that's another thread.
some 'classic' threads in case you miss it
http://www.elitetrader.com/vb/showthread.php?s=&threadid=9682
http://www.elitetrader.com/vb/showthread.php?s=&threadid=10978
http://www.elitetrader.com/vb/showthread.php?s=&threadid=9682
http://www.elitetrader.com/vb/showthread.php?s=&threadid=10978
The classic threads are great. I'll be here all night reading them if I'm not careful.
I like this site a lot, but gees, it can take up all the time that I need to be researching what stocks to watch tomorrow.
Made money today - Hurray! Made money this week, even. But then again, I can't take much credit for that, since the market's up. And as the market goes, so goes my stock balance.
- Deb Trader
I like this site a lot, but gees, it can take up all the time that I need to be researching what stocks to watch tomorrow.
Made money today - Hurray! Made money this week, even. But then again, I can't take much credit for that, since the market's up. And as the market goes, so goes my stock balance.
- Deb Trader
Hi Deb, I have a few suggestions.
Don't pay for any stock picking or any other type of service, they don't work.
Don't waste time with Tech Analysis, or other "Make money in stocks" books. You don't have to stay up all night studying charts either. It's generally not helpful. You can work from 9:30-4:00ET every day. Some can work from 10:00-11:30 every day, and make enough to make a living. It has nothing to do with extra time spent analyzing charts. Work smart not hard.
If I had to stay up all night analyzing charts, I'd quit and go get a real job
Everyone will tell you that you need an "edge", that is certinaly the key to trading. The problem is that most people will give you false information about what an "edge" is.
Chart patterns, Tech analysis, websites, strategies, probabilities, basically any service that you have to pay for, etc.. No information you get from this is helpful, because everyone else has also has access to this information, which negates it's value.
Many traders trade based on "feel", that means GUESSING. Just about everybody falls into this category, so it's surprising that supposedly only 90-95% of new traders fail, and the number is not more like 99.99%! Some 50 yr. futures local in Chicago that has been in the game for 30 yrs. may be able to trade on feel (and paying pennies in commissions), but guessing will eventually get you around a 50/50 result, with commissions that makes you a net loser.
Most true edges are available only to professionals. Market making rules on an options exchange, exchange member trading costs, insider trading, the ability to back off a posted price, or trade against a customer order. These are edges.
For the daytrader we have less to work with..
Low costs is an edge (and the #1 edge too for high volume trading), ECN rebates for some people is an edge, and high leverage is an edge. Considering your amount of capital, you may want to join a "prop firm".
I am not trying to recruit you, so I'll tell you that low commissions and high leverage are THE ONLY edges prop firms provide, but that is enough of a reason to join one IMO.
"Training" is not an edge either - you can't teach trading, so don't believe the hype.
Strategy, that must be there too, and there are many ways to skin a cat. I think it's best to learn that by just trading, and keep losses small enough to stay in the game until you find what best works for you. Best wishes!
Don't pay for any stock picking or any other type of service, they don't work.
Don't waste time with Tech Analysis, or other "Make money in stocks" books. You don't have to stay up all night studying charts either. It's generally not helpful. You can work from 9:30-4:00ET every day. Some can work from 10:00-11:30 every day, and make enough to make a living. It has nothing to do with extra time spent analyzing charts. Work smart not hard.
If I had to stay up all night analyzing charts, I'd quit and go get a real job
Everyone will tell you that you need an "edge", that is certinaly the key to trading. The problem is that most people will give you false information about what an "edge" is.
Chart patterns, Tech analysis, websites, strategies, probabilities, basically any service that you have to pay for, etc.. No information you get from this is helpful, because everyone else has also has access to this information, which negates it's value.
Many traders trade based on "feel", that means GUESSING. Just about everybody falls into this category, so it's surprising that supposedly only 90-95% of new traders fail, and the number is not more like 99.99%! Some 50 yr. futures local in Chicago that has been in the game for 30 yrs. may be able to trade on feel (and paying pennies in commissions), but guessing will eventually get you around a 50/50 result, with commissions that makes you a net loser.
Most true edges are available only to professionals. Market making rules on an options exchange, exchange member trading costs, insider trading, the ability to back off a posted price, or trade against a customer order. These are edges.
For the daytrader we have less to work with..
Low costs is an edge (and the #1 edge too for high volume trading), ECN rebates for some people is an edge, and high leverage is an edge. Considering your amount of capital, you may want to join a "prop firm".
I am not trying to recruit you, so I'll tell you that low commissions and high leverage are THE ONLY edges prop firms provide, but that is enough of a reason to join one IMO.
"Training" is not an edge either - you can't teach trading, so don't believe the hype.
Strategy, that must be there too, and there are many ways to skin a cat. I think it's best to learn that by just trading, and keep losses small enough to stay in the game until you find what best works for you. Best wishes!
more 'classic' thread http://www.elitetrader.com/vb/showthread.php?s=&threadid=9722