It can also launch one onto the wrong path, and working one's way back to the right one can take a considerable amount of time, particularly given the baggage one would have collected on the way. There is no need for "tools" to develop a trading plan. All one needs is access to charts and -- preferably but not necessarily -- replay. But the typical beginner just can't wait. He's so eager to trade. Then he becomes afraid to trade. And this conflict can dog him for years. If nothing else, creating one's trading plan first enables him to know exactly what he requires from a trading platform, broker, etc.
He has been warned. I wonder if anyone's ever done it the "right way". My first few trades were buying gold in the dips using a 15 second interval chart in a spread betting account! This did not help whatsoever, and most likely did do damage. But subsequently, trading stocks 10 shares at a time with a proper broker, using level 2, routes, pre-market, experiencing economic announcements / gaps / slippage, etc probably did help somewhat. You need to learn about these sorts of details at some point and paying by way of a few small losses did at least cement it.
Yes, a few have done it "the right way". I was fortunate in that the first book I read when I began trading was How To Make Money In Stocks, which is to a large extent a trading plan in itself. This forestalled a great many of the bad habits I've seen acquired over the years (exacerbated to a staggering amount by the internet, discount brokers, access to free streaming data, and so forth). The key words in your response, however, are "at some point". But one can accomplish a great deal of work before that point is reached. "Beginner's luck" is due largely or perhaps solely to the fact that beginners -- especially children -- are particularly good at distinguishing up from down because they do not yet have filters. But once a few mistakes are made and losses are incurred, caution takes hold. If one then resorts to "aids" such as indicators to tell him whether is price is going up or down, the caution turns to fear, and getting back to that state where one could tell up from down naturally is a long, hard slog.
I agree. Doing is better then reading books but don't disregard them. They are equally important. Books will help you learn. Experience will help you understand.
I disagree. Trading and poker are not the same thing except both are gambling and require the same gambling risk management techniques
Whomever told you that you can not create a trading plan unless you start trading is lying to you. You should first create a trading plan (easy or complicated). Next, backtest it. If you don't like the backtest results...make some changes and backtest your trading plan again. If you still don't like the results, post your trading plan here at Elitetrader.com and ask for help in what could be the problem. If you don't want to share your trading plan for fear of being ridiculed or attacked...find someone you like here and share your plan with them via private message only. Next, when you think you have it correct...then you can test it via demo or simulator. Its during the demo or simulator phase that you should then be learning how you use your broker trading platform. After you've mastered your broker trade execution platform...you can then trade your trading plan with real money and a small size. Then if your real money trading doesn't go well...stop trading and start all over again via the backtest phase to determine what went wrong. If you determine there's nothing wrong with your trading plan and the problem is you...your inability to follow your trading plan, do not return to trading and take a deep look at yourself to determine what it is about yourself that's sabotaging your trading. Once again, you can use Elitetrader.com for help with any of the above concepts (trading plan, backtest, simulator, psychology) if you're not able to find answers on your own. By the way, I do know this is just fun (game) and a hobby to you via your own words earlier. Yet, I and others warned about such an attitude when trading. Therefore, have fun and enjoy...my advice to you ends here.
Regarding that. I believe OP mentioned he was a poker player but still poor? If he can't make money being a poker player how is he gonna make money being a trader. I would think you need to at least be a good gambler to be good at trading. Seriously, good gamblers make money. For the record. I don't play poker much. Don't really enjoy it. But when I do (occassionally), I win often. That's from just relying on my trading experience and knowing to intuitively read odds and opportunity. And I don't play often.