Share your wisdom!

Here is my gift to you:

Learn about highs and lows, enough to determine if the big picture represents an uptrend, a downtrend or no trend at all.

If the big picture is represented by an uptrend, you want to buy support and sell around resistance.

If the big picture is represented by a downtrend, you want to short resistance and cover around support.

Make sure the play supports a reward bigger than the risk so you have positive expectancy over the course of time. Once you got enough data, hundreds of trades, more even better, determine if your personal accuracy and risk vs reward is profitable. If so, you can go live.

When profitable consistency has been achieved reinvest your gains in a responsible but consistent manner while not deviating from the original plan.

Do not worry about accuracy, losses are inevitable and discipline and preservation of capital comes above all.

Learning to take small losses and sticking to your original plan (target) are possibly your best friends in trading.

Anek
 
Quote from IzzyfoShizzy:

I will definately look into that, thanks for the recommendation.



I guess I still need to learn the technical terms because i don't exactly know what momo stocks are.



good point, i guess i need to identify what kind of trader i am. i have no idea and im not sure how i would find out.

thanks for the tips so far guys. i appreciate all of the input.
More...


Great book
Helped me alot
I dont think his pivot strategy is as high-probability as he claims
also its a bit dated -- dates from 2005
 
Quote from IzzyfoShizzy:

I'm a young college student and I've always been interested in the stock market and making the big bucks. I finally jumped in this September with a gigantic chunk of my money (probably nothing compared to what you guys deal with) but I figured I'd learn the game while not risking much.

unfortunately, i dropped down significantly almost immediately after i entered but after making changes, i made back all my losses and then a large amount of profit. but it was too good to be true and now I am back in the losses and have been there for quite some time. doesnt seem like i will be getting out soon.

I guess im just asking for any words of wisdom or help on how to get better at this. i must be doing something wrong. i realize that by putting myself out here on ET, i might get kicked around but i figure some of you may actually have advice worth listening to. I consider myself a sponge and ready to absorb information.

I keep making some great moves but also end up making some terrible moves that counter them. so there must be some hope for me. for example, i bought TEX at 55 a while ago and sold it all at 68 today.

But then, i also bought AAPL at 170 and its now around 122 (STUPID move). One thing I've realized is that its very dangerous when you attempt to play earnings.

I used to watch Cramer's Mad Money when I first started, but quickly realized that he isnt the best person to be listening to so I stopped tuning in. I use Scottrade, I dont know what most people on here use. anyways, the floor is yours.
More...

===============
Izzyfo;
Nice trade,TEX,study what you did right. Also thats a strong sector, probably should watch it & DE, for uptrends, especially DE

Great way to get helped with trends;
50 day moving average, which is uptrending bull trend with DE,
downtrending with SPY, so usually short downtrends/bear trends:cool: Compare DE to TEX with 50dma.................

Trade smaller till you make profits;
not that you or most new traders trade proper position [small size as a % of accounts]

AAPL is too far below 50dma for me to buy;
maybe bottom ,@120 maybe not.Simply too many better to go long on , & prefer something else to short.

Also find out WHY experienced traders dont trade ''gigantic'';
as a percent of thier accounts.

Trading requires about as much [years/years usually]education as med DoctorS, then you get $$$$.


Wisdom is profitable to direct:cool:
 
Quote from IzzyfoShizzy:

I'm a young college student and I've always been interested in the stock market and making the big bucks. I finally jumped in this September with a gigantic chunk of my money (probably nothing compared to what you guys deal with) but I figured I'd learn the game while not risking much.

unfortunately, i dropped down significantly almost immediately after i entered but after making changes, i made back all my losses and then a large amount of profit. but it was too good to be true and now I am back in the losses and have been there for quite some time. doesnt seem like i will be getting out soon.

I guess im just asking for any words of wisdom or help on how to get better at this. i must be doing something wrong. i realize that by putting myself out here on ET, i might get kicked around but i figure some of you may actually have advice worth listening to. I consider myself a sponge and ready to absorb information.

I keep making some great moves but also end up making some terrible moves that counter them. so there must be some hope for me. for example, i bought TEX at 55 a while ago and sold it all at 68 today. but then, i also bought AAPL at 170 and its now around 122 (STUPID move). One thing I've realized is that its very dangerous when you attempt to play earnings.

I used to watch Cramer's Mad Money when I first started, but quickly realized that he isnt the best person to be listening to so I stopped tuning in. I use Scottrade, I dont know what most people on here use. anyways, the floor is yours.
More...

Izzy, where you from, BTW?
 
Quote from cashmoney69:

1. trade small..you'll last longer and more importantly, you'll learn something especially on losses.

2. Dont average down (doubling the number of shares you have after the stock continues to fall)...from a money management perspective, its just not a good idea.

3. Dont try and day trade with online brokers like scottrade, although they're a great broker (i use them as well)

4. The more indicators you use, the more confused you will get...this does NOT help you understand price action more, as one would think.

5. While its important to have a heads up on the markets, you dont need to understand the effect of news to trade...just watch the charts.

6. Trade after earnings, not before.

7. dont trust online gurus that sell systems that "guarentee" profits.

8. day trading fx (forex) or futures is better than trying to day trade stocks

9. keep great records of all trades

10. enjoy trading, if not find a better job.
More...


Agreed 100% --- I have learned it helps to have some view into breaking news - mainly to stay out of the way ---- TeamSpeak is free and seems to be pretty current
 
Quote from Anekdoten:

Here is my gift to you:

Learn about highs and lows, enough to determine if the big picture represents an uptrend, a downtrend or no trend at all.

If the big picture is represented by an uptrend, you want to buy support and sell around resistance.

If the big picture is represented by a downtrend, you want to short resistance and cover around support.

Make sure the play supports a reward bigger than the risk so you have positive expectancy over the course of time. Once you got enough data, hundreds of trades, more even better, determine if your personal accuracy and risk vs reward is profitable. If so, you can go live.

When profitable consistency has been achieved reinvest your gains in a responsible but consistent manner while not deviating from the original plan.

Do not worry about accuracy, losses are inevitable and discipline and preservation of capital comes above all.

Learning to take small losses and sticking to your original plan (target) are possibly your best friends in trading.

Anek
More...

Having had some beginners luck in January -- and then gotten thumped in February -- I know this is harder than it seems.

One point of clarification in your post would help--- can you consider the daily action a 'big enough' picture to decide the trend?

ie the 3 month daily chart looks down and sorta-kinda flat recently -- especially the last 12 days

is a trend for the day a sufficiently big picture --- to make bets accordingly

or on a given day ---- if the longer term trend (bigger picture) is down ---- look for the up-moves during the day and short them?

hopefully I am making some sense here.....
 
Quote from mgabriel01:

Having had some beginners luck in January -- and then gotten thumped in February -- I know this is harder than it seems.

One point of clarification in your post would help--- can you consider the daily action a 'big enough' picture to decide the trend?

ie the 3 month daily chart looks down and sorta-kinda flat recently -- especially the last 12 days

is a trend for the day a sufficiently big picture --- to make bets accordingly

or on a given day ---- if the longer term trend (bigger picture) is down ---- look for the up-moves during the day and short them?

hopefully I am making some sense here.....
More...

It depends on what kind of trader you are.

If a micro scalper using the big picture as reference is useless so you only stick to the intraday trends, chances are there will be many.

Now, if you prefer intraday swing trades then I suggest a chart showing the trend of the past 1-5 days supplemented by the daily.

Anek
 
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