Yes I'm a newbie. And yes I'd like to make a lot of money.
- Thread starter CaptnDustball
- Start date
Quote from maxpi:
I have trashed a newbie or two but I'm all better now....
The time to learn and become profitable varies greatly, it can depend on the individual and/or luck in finding a good strategy or finding the knowledge... all I can say is assume there might be half truth in anything you see and try to get ahold of all the right halves.. and it will take time and it will take effort and if you persist long enough it will be rewarding..
I do agree with you on that.. It's not all about what they call luck to just win on trading..
It really varies on different aspects including learning..
Just focus to learn and not just with the idea of making money..
You'll have to be aware that trading needs a lot of dedication and hard work..
I'm a relative newbie myself; I have had a stocks/options account for about 3 1/2 months. I agree with the above statements that trying to focus not on the money you want to make, but rather improving your trading knowledge and ability is important for beginners. A great way to do this is paper (fake money) trading. In paper trading though, I think it IS a good idea to pretend that you're after real money, since it will motivate you to only make trades you would execute in real trading. After doing this every day for about 2 months I am really learning a lot.
OANDA has a really good pretend-trading site called "fxgame," if you're into forex. Personally, I think forex is the way to go unless you have $25,000 or more and can bypass the SEC rules on "pattern day trading." Otherwise, you're stuck holding your positions overnight which has hurt me big time on a number of occasions.
As far as the "right" approach goes, obviously I'm unqualified to talk about this but I think understanding fundamentals like micro and macro economics is just as important as knowing what chart patterns to look for. Knowing how to read a chart will get you a good entry point as far as that chart goes, but if you don't account for some fundamental cause of its fluctuation (non-farm payroll announcements in forex, for example), you can get screwed out of what looked like a perfect chart pattern. Read www.investopedia.com day and night if you want to learn more about this stuff.
good luck man.
OANDA has a really good pretend-trading site called "fxgame," if you're into forex. Personally, I think forex is the way to go unless you have $25,000 or more and can bypass the SEC rules on "pattern day trading." Otherwise, you're stuck holding your positions overnight which has hurt me big time on a number of occasions.
As far as the "right" approach goes, obviously I'm unqualified to talk about this but I think understanding fundamentals like micro and macro economics is just as important as knowing what chart patterns to look for. Knowing how to read a chart will get you a good entry point as far as that chart goes, but if you don't account for some fundamental cause of its fluctuation (non-farm payroll announcements in forex, for example), you can get screwed out of what looked like a perfect chart pattern. Read www.investopedia.com day and night if you want to learn more about this stuff.
good luck man.
just be prepared to lose a lot of money before you make your money , most likely lose 50% your first year. Odds are against you in trading when your a newbie
Develope a trading plan. Something I wish I did ASAP
you need something that addresses issues like money
management..how much of your money will you risk per trade?
(in stocks, I'd risk 1%), and how much are you trying to make (
risk/ reward ratio.. 3:1 is common) Random trades will =
random results and you'll never understand why you are losing
money
..oh, and NEVER trust any of these people you see on the internet or infomercialls trying to sell you a "system" with little or "no risk". It's ALL BULLSHIT. keep that in mind.
--
write down everything, and keep good records of:
entry / exit (draw these are your charts..you can use winblows paint )
stop loss (price at which u sell)
why you bought
why you sold, and did the trade work? why/why not
you need something that addresses issues like money
management..how much of your money will you risk per trade?
(in stocks, I'd risk 1%), and how much are you trying to make (
risk/ reward ratio.. 3:1 is common) Random trades will =
random results and you'll never understand why you are losing
money
..oh, and NEVER trust any of these people you see on the internet or infomercialls trying to sell you a "system" with little or "no risk". It's ALL BULLSHIT. keep that in mind.
--
write down everything, and keep good records of:
entry / exit (draw these are your charts..you can use winblows paint )
stop loss (price at which u sell)
why you bought
why you sold, and did the trade work? why/why not
Reaver
How the hell you doing man?
How the hell you doing man?
i would suggest to put 10k on a 1 year CD tomorrow and start reading and paper trading. Return in a year and start asking questions. otherwise go to vegas and have a good time - as the odds will be the same, and loosing money while trading is much more boring. personal advice - don't bother with technical analysis - there is no way you can predict future - but of course you should read a couple of book on it - just to understand this simple concept. also tried to figure out what market is more understandable for your - as there are plenty of'em. good luck.
This is one of the first things I'd address. If you want to be a long term successful trader, learn to be generally risk averse, especially when starting out.
Most people on the outside looking in figure daytraders are risk cowboys who swing a big line and are either up or down huge on a regular basis. The best ones are actually the opposite of that. Consistent, small to modest profits with a smooth equity curve is what will build your bankroll to the point where, yes, you can take large risks in dollar terms, but by then you're able to handle it both mentally and financialy and you know what you're doing.
This game is all about lasting long enough to figure it out. Anyone with a passion for the markets and a strong work ethic can make it IF they can stick around until something clicks. That means preserving your capital by trading very small and if you can, working another job to support yourself so you don't have to keep drawing down your trading capital to pay the bills.
There are several guys on this site making much more than $100k a year just from trading, many of whom started with small accounts.
Good luck.