New to trading

Discussion in 'Professional Trading' started by Jsent, Jul 9, 2006.

  1. Jsent


    Hey, I'm new to trading. I've been paper trading and I'll be setting up an account with an online broker in the next couple of weeks. At the risk of sounding like a complete newbie to this, my general strategy is to make 2-3 trades per day, early in the trading day... although I will be swing trading, so I don't mind holding a position if I need to. I plan on waiting until good news is released about a stock and it begins to climb. Jump in right away, and put in a stop order to sell as soon as it goes up another few cents, enough to make a couple bucks in the process after commision.

    As simplistic as this strategy is, can anyone point me in the right direction or give me some general feedback/advice?
  2. (1) Will your losing day-trades become swing-trades? (2) Instead of looking for follow-thru with "news reports", expect reversals instead if you're making scalpy trades. (3) You'd want to use a limit-order above your buy-price if you buy a stock and want to sell-out quickly if it goes a few cents your way, not a sell-stop. (4) I get the idea that you don't have a well-defined "system". Develop something that isn't dependant on news as an "input".
  3. Man the market will eat you alive. The "dumb money" is what keeps the market alive....
  4. It may come to suprise you, when that stock that gets the good news, suddendly drops like a rock. I hope that you will have a closer sell stop order underneath it as the one that you have above it.

    You may say that if it drops like a rock then I just wont buy it. Well, hopefully that will be true. But if you did get in just as quick as you could. There is a chance that you are already in it.

    When placing stops, place the stop loss first.

    Best regards and all the best too you in your trading.