Ive been in the market for 3 years now but only as a midterm trader. Ive managed to lose about $4500 canadian in those years and it may seem small to you guys but considering i was and still am in college that was a huge chunk of my money. so i didnt trade for a whole year but am willing to give this another try but this time doing a short-term trading strategy. I ask you, how much will i need and what books will help me become a successful part-time trader. Im reading john elder's book COME INTO MY TRADING ROOM and would like to know how you guys feel about him and the book in particular. Any other hints would be helpful. My current stats: age : 22 Savings: 15,000 canadian or 11,000 american
Check out Trader Vic and Street Smarts. Also check out A Strategy for Daily Living by Ari Kiev, it will change your life. Keep a diary. You will be your own best teacher. Learn from your mistakes. You will make a lot and they are your best teacher. Brandon
Step 1) Read everything you can about trading Step 2) Realize 99% of it is bullshit Step 3) Form a hypothesis and test it with paper trading. Do over and over and over again. Step 4) Realize success in paper trading means nothing when you have real money on the line. Step 5) Start trading your ideas that you have discovered have true edges in the market with 100 share lots using IB for cheap commissions. Step 6) Overcome the other half of the battle - your emotions while trading real money Step 7) Slowly increase size, tackling the emotional hurdles all over again each step of the way Step 8) Realize this could take many years Step 9) Keep track of how many times you break these rules and how much $$$ it costs you Step 10) Calculate how much money I saved you with this advice and write me a royalty check in the future when you are finally profitable peace axeman
thanks for the reply and i'll make sure to check them out I definately do try to learn my mistakes and the greatest thing ive learned is that im risk-averse. I can recognize my own weaknesses and i know i have to overcome this. Thus, my strategy to cope with this problem is to work and save every penny i make so that i'll have some funds which im willing to lose. Stops is another thing ive learned the hardway
axeman you make a lot of sense Ive kept all of my borkerage statements from the first trade ive made 3 years ago. Im definately trying to learn from those beginner mistakes, the largest of all the mistakes was to not use stops and let my loss get too large. Most of the 4500 that was lost was from 3 trades (yikes i still cant believe i was that stupid)
One thing to watch out for is bet size. Before I had confidence that I could make winners again and again, I would bet large. Once I had confidence, I bet small. To see this effect in real time, and also the account killing "revenge trading" effect, observe a blackjack table.
Well, I think Step 1 is a necessary evil .. but I think the BS level is more about 90%. There are some good stuff in places you least expect. Just learn and keep learning without actually trading, until you've developed a logical method of your own that you believe will work.
Two articles which might help you http://www.snapdragon.co.uk/resource/articles/nealh.htm http://www.snapdragon.co.uk/resource/articles/artsys.htm
That's a conservative figure. I became successful only after I developed my own style of trading through many trials and lotsa errors. I've read close to 20 trading books and my best teacher was to sit at this desk in front of these screens and trade day after day.