This is incorrect, which is where you are wrongly assuming that both a long and a short could not produce 2 losers. In other words, trader A could go long and trader B could go be short at the same time yet both traders can indeed lose. You need to look more into trade and risk management.
Noob Here About To Jump In
- Thread starter gdubb85
- Start date
This is incorrect, which is where you are wrongly assuming that both a long and a short could not produce 2 losers. In other words, trader A could go long and trader B could go be short at the same time yet both traders can indeed lose. You need to look more into trade and risk management.
I think this is probably the key. Thanks - time to research...
tick count matters....or so the vet said
You said it seemed easy what were you missing? You want a verteran to describe the difference between a seasoned trader and a losing trader? Most beginners are doomed because they are CLASSY:
Cocky - think that even if it is hard for others, it is not hard for them
Lazy - believe they can pick it up in a month or two after some great sim results and no hard work is needed or someone shuld bend over and just hand them the keys to strategies
Arrogant - think it is easy and they are the unique individual who can master it so screw all you naysayers
Stubborn - no matter what someone who has been at this for 15 years advises, they know better because they read a book
Spoiled - they feel that people should just give them the answers and key because why should they research it?
No respect for the amount of time and money it takes to master the skill and art of trading, as though anyone could pick up a golf club and with 1 lesson go play on the tour or play some online poker and then go win a bracelet, trading should be the same for them.
Young and dumb - usually very inexperienced and ignore the fact that experience is what is required to make money in the market since the dawn of time (you need hours of screen time to even comfortably understand price action let alone having the balls to be disciplined for risk management.
So why should anyone explain the obvious when you make it sound so simple. Go do it and come back after you reset your 4th sim account or go from SIM to LIVE with all the traits above and get chewed up by the market.
What it takes to be profitable in short term trading is counterintuitive to "normal" thinking.
For example, the trading adage "Buy the rumor and sell the fact" is good advice. However most new traders will initiate a trade based on a single news story or a price spike.
Another example of a mistake a new short term trader may make is equating declining price as increasing value. Their reasoning is typically along the lines of: "This is a great stock and I can now get it at a bargain price"! There are some very short term exceptions, but require experience and decisive action.
Sometimes, someone I know, ahem, will buy a "weak sister" related to a stock that has performed very strongly. Feeling they missed a move in the strong stock, they hope the weak sister will catch up. Like the lottery, it rarely does.
There is a natural selection bias against taking profitable trades. Most good opportunities don't last long. The window for entering profitable trade is usually much smaller than entering a unprofitable trade. Some traders will use a time stop in addition to a price stop.
Gaming theory implies those who take the initiative will outperform those who merely react. For example, some people will enter on a price spike( wide bar), others are exiting on a price spike. Another trading adage is "Buy when it is quiet, sell when it is wild".
There are many profitable trading styles that actually conflict with one another. The profitability of these styles depends upon the context of the current trading environment. For example, a short term trend trader is on the look out for significant stock moving catalysts in order to find the conditions that suit his style. This implies following several stocks as most of the time, a particular stock usually is in a trading range, making it hard for a trend trader to be profitable. A scalper however, generally will focus on a single issue in order to learn it's nuances. They will be able to make small amounts on each high probability trade they make. This style requires strong focus and decisive action.
Fortunately for you, you seem aware of money management. The real killer of new traders is taking on too much risk and letting losers run. Some double down or worse on losers. Think of a losing trade this way: My objective is to find an opportunity that will likely have a positive expectation without my risking impairing my trading account to a significant degree. Any trade that does not meet this primary requirement shows either that you were off on timing, misread the situation, or that market conditions have changed since you initiated the trade. Now this losing trade has shown itself to not be the opportunity you thought it would be, you get out. Stops a little past resistance or support, depending whether you are short or you are long are usually appropiate. There will be times you get stopped out only to see the price move massively in your favor. Don't let this rattle you to the point where you no longer use stops. You will really hurt your account performance if you "get married" to a long term losing trade.
Like anything else, your success at trading depends on how much effort and work you put in to it. Until you develop consistently profitable trading results, keep your trade sizes small. It is one thing to read the rules of a card game and quite another when playing it.
Good luck and best wishes to you.
For a period of 60 days, make your bed everyday as soon as you are up and out of the bed, no exceptions, if you were able to do that successfully, then come up with a business plan for your new trading venture. don't trade before you have your business plan.
PS. Assuming you will be trading equities and there are no holidays, you can trade 5 days a week and on average that is 20 days a month, based on your numbers with 0.2% a day your monthly aggregate will be 4% and not 6%.
PS. Assuming you will be trading equities and there are no holidays, you can trade 5 days a week and on average that is 20 days a month, based on your numbers with 0.2% a day your monthly aggregate will be 4% and not 6%.
so it occurs every day or always is it? then it is ok
what worries me is that you thinking of the money what you can make without considering the skills you have to acquire in order to make that return.
if your pattern is really as good as you say then what the hell are doing here just go and trade it
if your pattern is really as good as you say then what the hell are doing here just go and trade it
