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Advice for New Traders

  1. Zurich Axiom#1

    - Worry is not a sickness but a sign of health - if you are not worried, you are not risking enough.

    discuss
     
  2. That gambler who put all his chips on the table, then lost everything, now he's homeless and divorced by his wife - he doesn't look all that healthy to me.
     
  3. If his mortgage is upside down and in his wife's name and his girlfriend is rich and gorgeous I would say that he is doing very nicely.

    sosueme
     
  4. You need to stop watching those movies and get back in the real world. :)
     
  5. If you are worried, you are overextended or you haven't got a big enough hedge.
     
  6. in my opinion, if you're worried your plan lacks something
     
  7. 1. keep track record with comments why decided to trade that specific time. Learn from your mistakes and favours.
    2. Have a strategy based on business logic (plan-do-review).
    3. USE STOP LOSS ON EVERY TRADE.
    4. limit your loss not more than 2-3% of your equity.
    5. see the market in 2 or 3 timeframe to catch the proper direction, margin and the timeing.
    6. remember the market math is the following: 2+2=5-1 :)
    7. let the market exit your position: trailing stop out for profit to improve your risk/reward ratio.
    8. pyramid your wining trade to improve your risk/reward ratio.
     

  8. "worrying" will shorten your life span. raises your stress levels and cortisol levels which raise your risks for cardiovascular disease and overall mortality.

    "lack of worry" - lengthens it(lifespan).

    your trading, your vocation, your livelihood should be a plan to reduce your worries and live a long healthy life.

    Trading is a demanding grueling hazardous job, risk management and "Worry" mitigation are super important.

    Good luck.
     
  9. If you're worried, you should probably exit your position so you can reassess it with a clear head. If you still like it, get back in. If you're still worried after that, you probably don't trust yourself very much to stick to your stop-loss rules.
     
  10. Zurich Axiom#1

    Corrolary:
    - Always play for meaningful stakes - if an amount is so small that its loss won’t make any significant difference, then it isn’t likely to bring any significant gains either.

    Discuss
     
  11. 1. MM, MM & MM
    2. Discipline
    3. Turn your emotions off
    4. Test your TS in historical data
    5. Keep enhancing your TS constantly.
     
  12. and one more,

    listen to the market and not yourself
     
  13. The best way that I've always known if I'm in the right position size to account size is to be worried enough, yet calm or bored enough, to have a healthy zen like focus. If you are too worried you will get shaken out of trades prematurely and you will be looking for every little reason to exit your trade. If you are too calm and bored it can detract you from keeping a responsible eye on the position and it can also mean you are not utilizing your money line to its fullest potential. So which ever position size puts you in an alert, focused, state of mind. This does take practice to find the right emotional "zone" but it makes a huge difference on your trading. If you are in the right state of mind you can really see the market and its future direction MUCH more clearly. Also, I realize that some traders are numbers people, (I have a friend like this and he likes to argue with me over this from time to time), and they prefer to use exact numbers, (percentages, volatility, past price action, etc.), to gauge their position size. I have always been more of a discretionary, eye ball it and watch my emotions, kind of guy. Queuing off of my emotions is actually part of my methodology now and I am always surprised how much more my subconscious or "sixth sense" seems to know compared to what I consciously believe to see. Each trader needs to find what suits him/her best but emotional awareness is key either way in my opinion.
     
  14. Have they heard of risk/reward ratios in Zurich? If a trade makes 50 times your risk, I'd say that is a pretty significant gain.
     
  15. Come on you guys don't give me this "you should never be worried about your position otherwise you are in a bad trade" bullshit.

    Everything we do is a risk in this business.........nothing is for certain and the trade could just as easily go against us than go with us.

    Its natural to worry and stress in this business (although at the tender age of 18 I feel like an old man sometimes). When the chips are down and you have to make split second decisions that might not be the most popular in the office, you have to hike up your skirt, grab your balls and make a decision. We play with real bullets here so its natural to worry and stress about what we do.
     
  16. Zurich Axiom #1

    Corrolary#2:- Resist the allure of diversification.

    I take this to mean, become an expert at one market, and master it.

    discuss
     
  17. I recently switched to a new trading platform, totally different from what I was using. I demo traded for a couple hours one day and decided that was meaningless. It was so easy to trade recklessly knowing nothing was on the line. So I spent a week trading live, making mistakes, stressing out over live positions that appeared "out of nowhere" and ended the week down a few hundred dollars.

    My husband asked me why I didn't spend the week demo trading and making my mistakes there instead of wasting real money.

    YT, you nailed it. If you make a mistake and nothing's on the line, who cares? If you're trading your real money, and you're suddenly short at major support when you thought you were long, you find out just how clear-headed you can be in a pinch.

    (I hiked up my skirt, but wasn't sure how to manage that second part) :D
     

  18. haha im glad you understood what I was trying to get across.

    This is a very tough environment we play in. And to think that you can compete in this arena without any stress you are sadly mistaken. Im glad you decided to trade live though, vs with a demo. There is absolutely no value in demo trading. It is so far away from the real thing that you will learn nothing. Gotta put your own dollars on the line and then, only then will you truly start to learn.

    YT