Beginner Stock Trader - Strategy + Help Request

Discussion in 'Trading' started by kbrown84, Jul 3, 2018.

  1. kbrown84

    kbrown84

    From my understanding a low float stock has more price volatility on good news. Meaning, the price & increase is higher than normal.

    I figure my exit strategy should be a 10% loss?
     
    #11     Jul 5, 2018
  2. deaddog

    deaddog

    Every trader is different, that's what makes a market. Like they say every trade has two participants that think they are right and one isn't. :)

    Low float stocks are more volatile but they can hit you on the downside as well.

    I'd suggest you test (paper trade) the strategy in real time for a while to see how it works out.
    Write a trading plan and see how trading it works out after several trades.
    Use the same amount of capital you would be using in a real money account.
    If you can't make money on paper you won't make money when you go live.

    FWIW; When swing trading I never look at the news, I look for price increases on above average volume.
    I try and limit my losses to less than 1% of my capital.
     
    #12     Jul 5, 2018
  3. qxr1011

    qxr1011

    like most people imho you do not have neither investment method , nor trading method

    develop at least one working method before you start risking money

    if not then consider what you doing (placing orders) just a hobby and relax
     
    #13     Jul 5, 2018
  4. treeman

    treeman

    I get why this is said, but it’s way too simplistic and just wrong. Both can be right and both can be wrong. Opposing trades don’t have to trade on the same time frames nor have the same exits.

    Zero sum in aggregate? Absolutely. Per trade.. no way.
     
    #14     Jul 5, 2018
  5. deaddog

    deaddog

    Like I said someone is wrong. This time it could be me. :)

    Not the first time either, I'm wrong more than I'm right but I have a plan that keeps me from losing a lot of capital.

    I have yet to meet a trader that hopes a trade moves against them. I suppose you could make a case for the trader that hopes to buy at a lower rate but takes a small position in case the price surges.

    Point is that there are a myriad of ways to be successful. The OP's strategy may well be viable, however it is not something I would do. The main thing is to have a plan to handle your losers.
     
    #15     Jul 5, 2018
  6. treeman

    treeman

    No. Both can be right, and both can be wrong. You don’t close out your position with the person you opened it with.
     
    #16     Jul 5, 2018
  7. Bill.C.

    Bill.C.

    Thats true, I only ever imagined this on aggregate. Kind of funny how two strangers could get together to craft a mistake together.
    Reminds me of childbirth!
     
    #17     Jul 6, 2018
  8. smallfil

    smallfil

    Maybe, focus on learning to trade properly including, learning proper risk management. No matter the amount of your capital, your primary goal should be protecting your trading capital. When you lose all your monies, game is over. You cannot trade or invest anymore. Unless, you get more monies from friends, family, etc. and plunk it down all over again. That would be dumb as you would be doubling down on stupid! Develop your own trading system with rules to follow in managing your monies, managing your trade, managing your profits and losses as well. Backtest is to see if it works. Only, then, should you commit trading your monies. You will have a much better chance of being successful then!
     
    #18     Jul 6, 2018
  9. qxr1011

    qxr1011

    disagree
     
    #19     Jul 6, 2018
  10. qlai

    qlai

    This sounds exactly what Warrior Trading is doing, no need to hope ... just learn from the master. Don't even have to pay a penny, watch YouTube.
     
    #20     Jul 7, 2018