Brand new traders..........read this

Discussion in 'Psychology' started by lilduckling, Jul 10, 2005.

  1. I think it was Buffet that said that. I dont think there is anything wrong with hearing other people's opinions and advice. I like knowing both sides of a story before I make a decision.
     
    #91     Jun 24, 2006
  2. Adobian

    Adobian


    Hardship is the root of enlightenment. Congratulations .
     
    #92     Jun 24, 2006
  3. rome32

    rome32


    Thanks for that I am new trader and really appreciate that bit of informtaion.
     
    #93     Sep 1, 2006
  4. I think that is a fine line that an experienced trader can spot but a newbie would not be able to. I'm not sure if you intended to use the word "hearing" instead of "listening" but you really did hit it right on the head. = )
    "Hearing" in the English language implies more of a perception of sound, whereas "Listening" implies to heed, obey or pay attention to.

    As an experienced trader, you can hear what others have to say and make independent trading decisions based on whether or not that fits your trading strategy. Usually this is done with great ease and little time spent. In one ear, out the other.
    As a newbie, they listen to what others have to say and try to follow, mimic, or analyze it. They spend a lot of energy thinking about it. This isn't necessarily a bad thing, it's just that they're still in the learning stages of trading. :)
     
    #94     Oct 20, 2006
  5. They might as well sign up for a newsletter and take their stock picks from that. Looking up to an "expert" is not the way to go..IMO. I'm still new at this also, but I try and think for myself.

    ....your thoughts

    cm69
     
    #95     Oct 20, 2006
  6. I agree. what most people dont understand is that even if you tried to emulate a great trader's every move.... you would still lose $ while he may make $. Its because you are not seeing what he's seeing.... just copying, thus you are blind to his anticipation / interpretations.

    I believe when starting out, one must learn every pattern.... charts .... indicators... market nuances, etc... and then tie it all together. After having achieved this feat, you than must ignore all of it ...... and operate from an "automatic subconscious" train of thought. Its is as if you achieve "nirvana" if you will. To me its the Zen of trading.

    If people only knew just how bad the scams are.... from all kinds of people trying to sell you something.... implying it will improve your mkt results, or if you learn "this pattern" or that one.... it will make you rich. You can not convince people, no matter how much you insist that they're wasting their money, because they want to believe. They want to believe that there is a trader or technique out there that will change things for them. I want to stress that there is a difference from a new trader spending $$ to learn what this game is all about, .. learn the basics... yes one must spend some money in the beginnig in order to gain some knowledge of what this is all about. But thats much different than spending money every year in hoping to make it big after finding the elusive holy grail. I said it before... there are a ton of holy grails out there, but only one road that leads to them.

    These days I'm only doing long time frames, and am experiencing the best results ever in almost 4 years since i started doing this.
    And its because of inner improvements.... improvements that can not be bought with money.
     
    #96     Dec 3, 2006
  7. jan168

    jan168

    very interesting posting!

    keep the good work!:)
     
    #97     Dec 4, 2006
  8. spinner

    spinner



    Welcome back lilduckling.

    Excellent thread. Great that it's being revived for more recent newbies.

    I also worry that newbies have a hard time understanding the excellent advice given out by pros. You hear something repeatedly, and it's not until a year or two into it that the lightbulb goes off and you realize that THAT'S what they were all talking about.

    Your point that a newbie needs to survive until they have enough experience to understand and profit from the advice is extremely well-taken. I see it like this:

    Goal #1: Survival
    Goal #2: Consistency
    Goal #3: Excellent returns

    Also, a newbie should not be looking for a good trade, but looking for a good system.

    I'd like to have a concise list of trading rules for newbies, beginning with those listed here. Will work on that.

    Because pros need to always return to those rules anytime the going gets tough.
     
    #98     Dec 4, 2006
  9. socalpt

    socalpt

    "...Markets will make you sell when you should be buying....buy when you should be selling...etc. (After i got out with that $4200 loss....the stock rallied right back up!)..." - lilduckling-


    I'd like to add this note to new traders like my self:

    - Study the chart intimately; yearly, monthly, and daily to find similiar patterns.

    - Study the FA to know if the stock is the strong one.

    - Use the MACD, or RSI etc. to exercise your entry and exit, it is especially important for short trades.

    - Stay calm.
     
    #99     Dec 6, 2006
  10. lilduckling,

    thank you for this thread.
     
    #100     Feb 18, 2007