Noob thread. Where you help answer my stupid questions.

C

ctrlfnalt

Hi,

I'm new to trading/investing and I'm trying to learn. I have a lot of basic (stupid) questions I'd like to ask, feel free to answer any and throw in extra advice.

I've been paper trading via technical indicators for a few months now and everything seems to be going alright, but I know it's not realistic and I need to know what influences exist in live trading that dont in paper trading.

What are the unforseen that live trading throws in your face?

I still dont properly understand spreads.
All my paper trading is using the current indicated price, if i delete the spread price from the total profit, is that then the correct final amount?

What speed is normal for order execution? Is it instant? 5 seconds? 30 seconds? 30 minutes?
And I assume this is reliant on the amount of shares you're buying?

Is there a general rule to order execution speed and volume you're buying?


Are there simulators that are realistic/ the same as live trading? I've read they give instant everything when the market doesnt work like that.


And tell me anything else that you think I should know that will help.



thanks.
 
Hey Alt,

hes legit, covers few important points :




Not only it can be different when it comes demo vs real, the demos itself, can be quite different.

Example, IB Demo/sim, takes ages to get filled in very liquid equities.

Where none of that happens with TOS.


Il skip lots of writing, short on time, but it's definitely worth it and a must to practice with demos/sims before you go live.
(people go live & don't know what short button means...)

At least 12 months, or until, as @Handle123 stated, you triple your account.

*************************************************************

People talk about the psychological aspects, that one, won't be treating as if it was the real money (when trading via sim),
while that is, absolutely personal thing and question of ones determination.
(how can someone else know that better if not you)

If you're serious about it, then you will treat it as the real money.

When i was practicing with the sim, - if i were down, my mood was bad for the whole day, as if i lost real money ;
but the true reason for dissatisfaction was, :
,,damn, i haven't figured this out. YET''

That last short word, very important.

Because at those moments when you want to drop it and quit, the idea of new strategy/approach, bursts up curiosity and vision, that it's possible.

Until eventually, it becomes.


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Mate, read up on the basics, but otherwise delay your entry into financial markets by a year. This is way too wild a ride for a beginner. Even paper trading at current conditions is a very bad thing imho. It will form some very bad habits that will cost you dearly in normal market conditions. Not a good time to get involved in any way as beginner.

ctrlfnalt said:
Hi,

I'm new to trading/investing and I'm trying to learn. I have a lot of basic (stupid) questions I'd like to ask, feel free to answer any and throw in extra advice.

I've been paper trading via technical indicators for a few months now and everything seems to be going alright, but I know it's not realistic and I need to know what influences exist in live trading that dont in paper trading.

What are the unforseen that live trading throws in your face?

I still dont properly understand spreads.
All my paper trading is using the current indicated price, if i delete the spread price from the total profit, is that then the correct final amount?

What speed is normal for order execution? Is it instant? 5 seconds? 30 seconds? 30 minutes?
And I assume this is reliant on the amount of shares you're buying?

Is there a general rule to order execution speed and volume you're buying?


Are there simulators that are realistic/ the same as live trading? I've read they give instant everything when the market doesnt work like that.


And tell me anything else that you think I should know that will help.



thanks.
More...
 
ctrlfnalt said:
Hi,

I'm new to trading/investing and I'm trying to learn. I have a lot of basic (stupid) questions I'd like to ask, feel free to answer any and throw in extra advice.

I've been paper trading via technical indicators for a few months now and everything seems to be going alright, but I know it's not realistic and I need to know what influences exist in live trading that dont in paper trading.

What are the unforseen that live trading throws in your face?

I still dont properly understand spreads.
All my paper trading is using the current indicated price, if i delete the spread price from the total profit, is that then the correct final amount?

What speed is normal for order execution? Is it instant? 5 seconds? 30 seconds? 30 minutes?
And I assume this is reliant on the amount of shares you're buying?

Is there a general rule to order execution speed and volume you're buying?


Are there simulators that are realistic/ the same as live trading? I've read they give instant everything when the market doesnt work like that.


And tell me anything else that you think I should know that will help.



thanks.
More...
I think that Livermore's answer sums it up well:

Jesse Livermore said:
I have heard of people who amuse themselves conducting imaginary operations in the stock market to prove with imaginary dollars how right they are. Sometimes these ghost gamblers make millions. It is very easy to be a plunger that way. It is like the old story of the man who was going to fight a duel the next day.

His second asked him, “Are you a good shot?”

“Well,” said the duelist, “I can snap the stem of a wineglass at twenty paces,” and he looked modest.

“That’s all very well,” said the unimpressed second. “But can you snap the stem of the wineglass while the wineglass is pointing a loaded pistol straight at your heart?”

With me I must back my opinions with my money. My losses have taught me that I must not begin to advance until I am sure I shall not have to retreat. But if I cannot advance I do not move at all. I do not mean by this that a man should not limit his losses when he is wrong. He should. But that should not breed indecision. All my life I have made mistakes, but in losing money I have gained experience and accumulated a lot of valuable dont's. I have been flat broke several times, but my loss has never been a total loss. Otherwise, I wouldn’t be here now. I always knew I would have another chance and that I would not make the same mistake a second time. I believed in myself. [1]
More...

Ergo, imnsho, STOP PAPER TRADING. Grow a pair, get into the market, and take your lumps. You need to have skin in the game.

...but take them small. Start with cheaper assets that you can afford to take a loss on.

1. http://www.gutenberg.org/files/60979/60979-h/60979-h.htm
 
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