Share your wisdom!

Discussion in 'Trading' started by IzzyfoShizzy, Feb 21, 2008.

  1. I'm a young college student and I've always been interested in the stock market and making the big bucks. I finally jumped in this September with a gigantic chunk of my money (probably nothing compared to what you guys deal with) but I figured I'd learn the game while not risking much.

    unfortunately, i dropped down significantly almost immediately after i entered but after making changes, i made back all my losses and then a large amount of profit. but it was too good to be true and now I am back in the losses and have been there for quite some time. doesnt seem like i will be getting out soon.

    I guess im just asking for any words of wisdom or help on how to get better at this. i must be doing something wrong. i realize that by putting myself out here on ET, i might get kicked around but i figure some of you may actually have advice worth listening to. I consider myself a sponge and ready to absorb information.

    I keep making some great moves but also end up making some terrible moves that counter them. so there must be some hope for me. for example, i bought TEX at 55 a while ago and sold it all at 68 today. but then, i also bought AAPL at 170 and its now around 122 (STUPID move). One thing I've realized is that its very dangerous when you attempt to play earnings.

    I used to watch Cramer's Mad Money when I first started, but quickly realized that he isnt the best person to be listening to so I stopped tuning in. I use Scottrade, I dont know what most people on here use. anyways, the floor is yours.
  2. piezoe


    Good for you. Trading is an interesting challenge. Hang out at ET and you can learn much from the many expert traders (and some not so) who post here. I have been trading in one form or another many years but i am continually learning, and have learned much from my ET colleagues.
    If you want to do day trading, the book "Mastering the Trade" by John Carter is one that i could recommend as a place to start. There are many other good books on trading too.
  3. Buy dips, sell rallies. Don't get greedy, hit your target and bail and don't chase.

    Stick with index trading in this environment. Stay away from momo stocks.

    Don't listen to media pundits. Don't listen to brokers. Think of it as one big ponzi scheme.
  4. id your holding period- u guerrilla, swing or position trading ? have exits in mind to prevent the big losses.
    if ur exit gets hit but stock moves back in your favour - just get back in if you were right. Rather than going for home runs try intra-day trading w very small shares and even just scalping until you have developed a comfortable system. you should strive for consistency before making big money - all just my opinion of course:cool:
  5. I will definately look into that, thanks for the recommendation.

    I guess I still need to learn the technical terms because i don't exactly know what momo stocks are.

    good point, i guess i need to identify what kind of trader i am. i have no idea and im not sure how i would find out.

    thanks for the tips so far guys. i appreciate all of the input.
  6. nkhoi

    nkhoi Moderator

  7. has educational trading DVD's you can purchase . they might be a good place to start.

  8. 1. trade'll last longer and more importantly, you'll learn something especially on losses.

    2. Dont average down (doubling the number of shares you have after the stock continues to fall)...from a money management perspective, its just not a good idea.

    3. Dont try and day trade with online brokers like scottrade, although they're a great broker (i use them as well)

    4. The more indicators you use, the more confused you will get...this does NOT help you understand price action more, as one would think.

    5. While its important to have a heads up on the markets, you dont need to understand the effect of news to trade...just watch the charts.

    6. Trade after earnings, not before.

    7. dont trust online gurus that sell systems that "guarentee" profits.

    8. day trading fx (forex) or futures is better than trying to day trade stocks

    9. keep great records of all trades

    10. enjoy trading, if not find a better job.
  9. Eddiefl


    1. Find a system/pattern/methodology that works.
    2. Verify that it works consistently, (back testing)
    3. Apply system.
    4. Repeat step 3.

    This goes for weekly charts, 10 minute charts, 30 minute charts. You need to have a system before you put real money in. paper trade until you do, it will save you much in "tuition" that many of us have paid to the markets, myself included.

    dont buy and hold and dont play earning until much more experienced. forget the bull-market, it is probably over , been going up for the last 3+years. So trading/investing will get much trickier for the foreseeable future.

    best of luck, with hard work, discipline and a valid mehtodology, you will do better than most.

  10. You are going through what every beginning trader goes through. In fact, you are probably ahead of the curve because you've actually made money. Most new traders lose consistently. Go back and review every trade you made and create a journal. Record your thoughts and rationale for every trade. Keep doing that with the current trades you are putting on and go back and review them relentlessly. If you don't study history you will become history.

    If you wanna make the big bucks then trading has to become your life and the most of your work begins when the market is closed. Remember, you are competing with guys who have been doing this for 10+ years and who spent 5+ years studying and losing before they could actually make any money. Trading isn't as simple as taking a trigger and placing a stop and letting the market finish your work. It requires a lot of judgment and a great deal of planning. If there is one essential characteristic that you need but probably lack, it's patience. We want our money and we want it NOW. If you can wait you will be rewarded handsomely. Go back and review your losses. Would waiting have made a difference?
    #10     Feb 21, 2008