Some helpful advice for new traders

Tarzan

Tarzan

Dont ever buy large size, keep sizes in the 400-700 share range. If its a stock over $100, sizes of 100-200 is fine.
Also, stay away from gap ups, let the trade come to you. Do not chase.
Take the small gains. I go for singles and doubles, its rare for me to attempt the home run, especially when day trading. Every now and then you will get that nice 2-3 point swing trade but dont expect many of those. Its all about taking the quick profits and not staying in a trade too long.
If it goes the wrong way, you need to bail and re evaluate your trade, dont look for a shamrock or rosary beads, stocks dont have a conscience.
This market seems to be in a sell the gains mode so remember to be quick and efficient. Look at those charts as well, i am big with charts. Technicals matter.
 
agreed......

remember opportunities knock... temptation and greed ....leans on the doorbell


the best thing is do not be new.....get experience

some thing cant be taught they have to be learnt
 
Tarzan said:
Dont ever buy large size, keep sizes in the 400-700 share range. If its a stock over $100, sizes of 100-200 is fine.
Also, stay away from gap ups, let the trade come to you. Do not chase.
Take the small gains. I go for singles and doubles, its rare for me to attempt the home run, especially when day trading. Every now and then you will get that nice 2-3 point swing trade but dont expect many of those. Its all about taking the quick profits and not staying in a trade too long.
If it goes the wrong way, you need to bail and re evaluate your trade, dont look for a shamrock or rosary beads, stocks dont have a conscience.
This market seems to be in a sell the gains mode so remember to be quick and efficient. Look at those charts as well, i am big with charts. Technicals matter.
More...
damn bro...this was just the special, unique, original...even esoteric advice that i I have been seeking. Finally i can turn a profit, thank you.
 
zghorner said:
damn bro...this was just the special, unique, original...even esoteric advice that i I have been seeking. Finally i can turn a profit, thank you.
More...

If you follow my advice, you will probably be ok. I also appreciate the friendly PM.. I agree with that by the way.
 
Tarzan said:
If you follow my advice, you will probably be ok. I also appreciate the friendly PM.. I agree with that by the way.
More...
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Tarzan said:
Dont ever buy large size, keep sizes in the 400-700 share range. If its a stock over $100, sizes of 100-200 is fine.
Also, stay away from gap ups, let the trade come to you. Do not chase.
Take the small gains. I go for singles and doubles, its rare for me to attempt the home run, especially when day trading. Every now and then you will get that nice 2-3 point swing trade but dont expect many of those. Its all about taking the quick profits and not staying in a trade too long.
If it goes the wrong way, you need to bail and re evaluate your trade, dont look for a shamrock or rosary beads, stocks dont have a conscience.
This market seems to be in a sell the gains mode so remember to be quick and efficient. Look at those charts as well, i am big with charts. Technicals matter.
More...
To me that's terrible advice.

Position size should be related to the risk you are willing to take, not the number of shares.

Let your winners run. It's all about making money, not taking quick profits.

Don't let the trade go way wrong, bail as soon as it goes a little wrong.

You know your theory is suspect when Padu agrees with you. He's a self described failed trader. :)
 
deaddog said:
To me that's terrible advice.

Position size should be related to the risk you are willing to take, not the number of shares.

Let your winners run. It's all about making money, not taking quick profits.

Don't let the trade go way wrong, bail as soon as it goes a little wrong.

You know your theory is suspect when Padu agrees with you. He's a self described failed trader. :)
More...

Right re size, it's a function of the number of shares, the stop-loss value which adds up to be the maximum risk for trade you're willing to take. For example when i'm doing a 700 share trade I use ten cent stop, when I'm doing a 200share it's .40 cent stop
 
"Some helpful advice for new traders"

Did we forget the title, position sizing I believe goes hand in hand with knowledge and experience. Someone starting out I believe 10 shares is way enough of under $100 share start, just starting most new traders are experiencing all kinds of being nervous, unsure, pushing wrong buttons, crapping in their pants. Getting 100 trades under their belt can use MAE/MFE to refine stop losses. If building a smaller profit method, single/doubles work better than building smaller profit method and shooting for homeruns. I believe most young traders won't have experience of risking 10 cent stops.

Had carpal tunnel surgery yesterday on other hand, no pain and can do all the exercises one does after a week. Best to catch early.

Almost time for Starbucks.
 
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