How to succeed in stock trading?

Discussion in 'Professional Trading' started by lancer101, Aug 28, 2010.

  1. I am not referring to stop size in price terms.

    I am referring to stop size in % of account terms, position-sized to whatever price based stop makes sense.
     
    #11     Aug 29, 2010
  2. Nexen

    Nexen

    Buy low sell high.

    Risk 1 to make 3

    Stick to stops and targets

    Dont overleverage

    and repeat
     
    #12     Aug 29, 2010
  3. A legitimate edge.

    Low commissions

    Small stops (already stated)
     
    #13     Aug 29, 2010
  4. Nexen

    Nexen

    Stops must not be small, they just need to be smaller than the reward, assuming the accuracy is not superbly high.

    Nevertheless, saying stops must be small is in my opinion and incorrect generalization.
     
    #14     Aug 29, 2010
  5. exactly. Arbitrarily picking stops is not a proven method. Many studies have shown that small stops can sometimes really hammer profitability. You should backtest stop sizes with your own trading methods to find stops that make sense.

    It is about Risk Adjusted Reward, not Grandma's 15 untested trading rules, beliefs and wisdom.
     
    #15     Aug 29, 2010
  6. apama1

    apama1

    just search and read all the useful information that you have in this forum, and take your action when you feel self-confident.
     
    #16     Aug 29, 2010
  7. apama1

    apama1

    don't know how many but there are so many way to be successful in trading that you can read in this forum. Besides, you should choose one that you think it is appropriate to you and to your business, no need to do follow the other idea.
     
    #17     Aug 30, 2010
  8. apama1

    apama1

    Is it too long or short period to have succeeded in trading? I think time doesn't matter to the trade, it depends on how much knowledge you gain when you read this forum or any others.
     
    #18     Sep 1, 2010
  9. buy low, sell high, learn options, hedge, have lots of capital, learn everything you can, develop your own risk tollerance, have a strategy for every trade including exist
     
    #19     Sep 1, 2010
  10. topdeck

    topdeck

    spot on!! so simple, but so powerful.
     
    #20     Sep 8, 2010