Quote from MingWu:
Hey cashmoney, can you advise what went wrong, for us new traders? why you fail?
Again, its not about pass or fail. But to answer the question, in short,
I was under-capitalized to begin with.
Had I started out with 25-50k, I could trade larger size and possibly make 3x or more a month.
1.
I went to hell and back trying to find the indicators that made sense to me.
I thought the more indicators i added to my charts, the better I could understand and predict price, when in fact it just became harder and more frustrating. I still use some indicators.
2.
Find one or two set ups and stick to it.
I used to try and time the market by attempting to catch a top or bottom. Now I look for the breakouts these tops/bottoms produce
3.
Understand multiple time frames. This might take you a while to grasp, but once you understand how to use multiple charts in your trades, you'll improve greatly (over time of course). PM me if you want on this issue.
4.
Follow your gut feelings: I cant tell you how many times I said to myself, "This stocks gonna move", then I post on ET what others think, and later change my mind... mistake.
5.
Be patient. Take a look at VLO. I was in at 66, but I sold because I got bored with it. Now I have positions in CFC and CAT from early to mid april. The trend is your friend, yet so many forget this simple rule.
I'll be upfront with you. I didnt understand at first, but now I see why a lot of traders are "price action only"..adding even one indicator just adds one more thing you have to deal with...they can be helpful, but its a 50/50. I guess its fair to say indicators are needed on some methods more than others. For example, I trade breakouts, so to me, its important to see momentum in the market, so I use ROC (rate of change).
