What are the most valuable lessons you have learned?

HuntingBenjamins said:
Sorry don’t mean my whole account. I try to stick to about 500 shares on something. Lately I’d start by about 200 and then adjust depending on the trade but keep mis-judging that and some will do the full run of the swing before I get 500 in it. This is a new technique for me though because I’m unsure on these momentum trades vs trading between support and resistance.
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I think using something like 500 shares (semi) fixed isn't a good idea. One stock will require a 10 cent stop loss, aka $50 in this case, another stock will require $1 stop losses, aka $500. Big big difference.

Risking something like 1-2% of your balance per trade for example will make it much easier to properly manage your risk, but also your reward, it will also help you grow the account at a steady rate, without those big losing and big winning days that are mostly based on luck.

You want volatility in the market, not in your equity curve.
 
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p0box4 said:
I think using something like 500 shares (semi) fixed isn't a good idea. One stock will require a 10 cent stop loss, aka $50 in this case, another stock will require $1 stop losses, aka $500. Big big difference.

Risking something like 1-2% of your balance per trade for example will make it much easier to properly manage your risk, but also your reward, it will also help you grow the account at a steady rate, without those big losing and big winning days that are mostly based on luck.

You want volatility in the market, not in your equity curve.
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Funny you bring this up as the entire win/loss ratio thing has made it onto my radar several times this week in my reading. I chose these numbers when I started out because the math was easier but just recently am learning I need to take a better look. Based on your response I need to need to revisit. Thx!
 
HuntingBenjamins said:
Thought I’d update you guys. Well I did really good from the time I started last April/May. I was up nearly 50%. And then August happened. All the reverse miracles happened (when negative things happen that shouldn’t be able to happen…but then they do). My 3 months of gains were nearly wiped out in 3 weeks. The thing from this thread that still stands today is this set of words: “The only reason I took a big loss is because I didn’t take the little loss”. STILL STANDS!! I was up nearly 50% and as of today I’m up 4%. Still green for the year so I guess that’s still positive. Now a days I’m much more cautious in my trades. I trust no stock…at all. I’ve seen some crazy things happen. Of the stocks that about wiped my trading capital out, probably 80% are today about where they were when the massive drops of August happened. Some still haven’t recovered. I still learn something with every trade but still feel like just when I think I learned something, the market has no problem showing me that I don’t really know anything. To date I’ve got 56 winning trades and 34 losing trades but my biggest loss is 3x the size of my biggest win. All goes back to taking small losses instead of big ones. Lastly, sometimes shit just happens for no apparent reason. Unfortunately, shit happens in a negative sense way more than it has in a positive sense to date. I just had a losing trade the other day where everything was on a great uptrend. I did everything right. I waited until the run was solidly confirmed. I bought in, and 4 minutes later for no reason that I can find yet, it tanked. I got out, it stopped dropping, and seems like it’s reversed now. THAT still pisses me off to no end. But at least I was smart enough to get out at only a 5% loss so I’ve learned along the way. The lesson on that one: Even when everything is right, the market is still in control. Take the small loss. There’s your entertainment for the night!
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Longs only?
 
I did try shorting once just not my thing. Still getting comfortable with what I’ve got going on. Not to mention the one time I did short there was some clear market manipulation going on with the particular stock I chose to experiment with. Just bad luck in the one I chose. Got out once I recognized what was going on and just haven’t gone back to it yet. The real long stuff I just can’t make myself have faith in. I’ve seen so many things happen literally overnight I wouldn’t be able to sleep. Short runs are my flavor as of now. Who knows, might change over time. If I had my way I’d do nothing but day trades but a lot of the stuff I swing takes a few days.
 
HuntingBenjamins said:
I did try shorting once just not my thing. Still getting comfortable with what I’ve got going on. Not to mention the one time I did short there was some clear market manipulation going on with the particular stock I chose to experiment with. Just bad luck in the one I chose. Got out once I recognized what was going on and just haven’t gone back to it yet. The real long stuff I just can’t make myself have faith in. I’ve seen so many things happen literally overnight I wouldn’t be able to sleep. Short runs are my flavor as of now. Who knows, might change over time. If I had my way I’d do nothing but day trades but a lot of the stuff I swing takes a few days.
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Good luck.

Merry Christmas and Happy New Year.
 
I gotta post this in case any other newbies make the same mistake and get pissed off at themself. Many things I’ve done in this journey turned out to be lessons. I actually read a few books over the last few weeks that were great and provided me with some valuable information. Nothing you read can do better than the lessons of the mistakes you make along the way.

Today…I bought a few stocks to swing.Got in the 1st one at a good entry point. Only problem is that I was very focused on a 2nd stock that I also bought into today. I thought the first stock was on an after hours run. Whipped in there and sold that first stock and then immediately AFTERWARDS realized the price I had in my head…was for the second stock which I had bought for a lower price. So I sold the first one at a loss. So..now that really sucks because I believe that 1st stock is gonna run tomorrow. What certainly was gonna be some good profit turned into a self inflicted loss. I was pretty unhappy with myself but immediately afterwards implanted this situation in my head and made an adjustment to my selling. It WONT happen again. So whoever got my shares after hours and is skipping around with how lucky they are that they found someone that dumb…you're welcome.

The lesson: Pay ATTENTION TO WHAT YOU ARE DOING!! And I wish my platform had a “Are you sure you want to sell at a loss” pre-submit pop up.

Trade and learn.
 
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