AlpineTrader
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Hi Guys, i'm a beginner and I am very interested to learn more about trading. I started trading since 1 year ago. But unfortunately I still often fail. Is there anyone here who would like to share a little experience trading?
Greetings and thank you all
Hello, nice to meet you. I am also a new trader. When I first started the first month I used to do great because I only set my goal to make $100 or $200 per trade, I would enter about an hour after trading time on a stock that was trending good during that week and when the S&P was NOT down and was up. Then I would calculate what it would be for me to make $200 and set a limit to exit then got out when I hit my $200 goal---regardless if the market still continued upwards. If it was really soaring high then I would watch carefully and change my limit a little higher like $400. I won every day this way. Recently when I changed this formula and got more greedy thinking I could make $1,000, then all hell broke loose and I started missing the exit for a high profit and then exiting too soon and not even getting $100 profit.
not sure where you're at in trading or the amount of money you use on a trade, i use $30,000 so for me hitting $200 is very easy, but if you're using a different amount then adjust your minimum accordingly. Keep in mind that all profits do add up, so if you make $50 a day that is $200-250 a week or $800-$1000 a month, etc., but here's some of my rules as a beginner:
1) don't buy high when S&P is down (keep a running ticker on that)
2) learn the gap signals (entering on a gap from yesterday's closing), there is a good youtube video called gap trading where a guy explains it all
3) go slow at first. set your goal and stick to it, it is better to make $100-$200 per day consistently (that adds up to $500-$1,000 per week profit); than to shoot for big winnings because big winnings are great, but for a beginner trader to attain them on a daily basis can be disastrous. walk before learn to run so to speak.
4) beginners should not trade during lunch (that's new york time around 12-2?) and
don't trade fridays past 12:00 ET on an American holiday weekend, stock can rally hard and high up till noon back east and then when everyone leaves for their 3-day weekend (sometimes they leave at lunch and never return until Monday) the market can plunge. Keep a list of American holidays and check each day to make sure it is not one of those 3-day weekends. and in America sometimes 3-day holiday weekends can really be made into 4 (where they leave at lunch time the day before the 3 day weekends start). i'm in italy now and we don't have the same holidays so i tend to forget. P.S. AMERICAN TAX DUE DATE TURNED OUT TO BE VERY BAD TO TRADE THAT WEEK (usually this is April 15th and for about a week afterwards!!). Even Mother's Day or other days that are not trading holidays DO have effects on the market, for example, i once traded on Mother's Day weekend and was not good. Nothing is written in stone, but it is good to be aware of all US holidays even ones like Valentine's Day that are not listed on usual listings of stock market holidays because they can or cannot effect the market. If you do trade these times then make sure you bought at a low price (check historical prices for that stock) then you will be ok.
5) beginners should not trade mondays - or do so very carefully and know that mondays can be unpredictable and can set the coming week momentum and will not always continue the momentum (trend up or down) from the prior week).
6) don't buy what is unusually high for that particular stock check the historical highs and lows of that particular stock.
7) don't dwell on the big money you "could have won" just be glad you won your $100-$200 goal (or whatever your minimum goal is). and that you didn't lose actual money. in time when you know what you are doing then you can set your minimum $ goal for higher.
8) set your goal $ limit and stick to it until you are more seasoned trader
If you have any tips for me or questions or if anything i said above is a bad way to trade let me know, i am learning too, but this has helped me and recently i changed this and have lost all week long and now i am going back to my $100-$200 winnings limit again.
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Hi there. I agree with the others in that trading is something you master with experience. With that being said there are some things you can do to strengthen your skill sets:
1. Learn to read balance sheets, income statements, cash flows etc. This will help you to determine the health of a company's financials and potentially avoid a bad investment which is often better than choosing a good investment.
2. Learn to read annual and quarterly reports for those companies you are interested in. Many people do not realize how much disclosure is contained in the reports and those that scrutinize them will typically fair better than those that attempt to follow the trends.
3. "Be fearful when others are greedy and be greedy when others are fearful" - Warren Buffet. If you decide to buy a stock you should be excited to see it drop as it represents a buying opportunity. If you panic and sell, you probably should not have bought it in the first place.
4. Be patient. Patience is the name of the game. Compound interest is on your side and is the most powerful tool in investing. Time makes money. Read this article to see the impact. The Lost Art of Investing - Olim Dives
5. Practice makes perfect. Don't jump right into throwing your money out the window. Practice with virtual trading accounts and remain disciplined while using them. Don't treat it like virtual cash, treat it as if it were your own money. Good choices are The Virtual Stock Trading Social Network - Olim Dives and Online Stock Market Trading Game & Simulator | Wall Street Survivor
Good luck!
1. Learn to read balance sheets, income statements, cash flows etc. This will help you to determine the health of a company's financials and potentially avoid a bad investment which is often better than choosing a good investment.
2. Learn to read annual and quarterly reports for those companies you are interested in. Many people do not realize how much disclosure is contained in the reports and those that scrutinize them will typically fair better than those that attempt to follow the trends.
3. "Be fearful when others are greedy and be greedy when others are fearful" - Warren Buffet. If you decide to buy a stock you should be excited to see it drop as it represents a buying opportunity. If you panic and sell, you probably should not have bought it in the first place.
4. Be patient. Patience is the name of the game. Compound interest is on your side and is the most powerful tool in investing. Time makes money. Read this article to see the impact. The Lost Art of Investing - Olim Dives
5. Practice makes perfect. Don't jump right into throwing your money out the window. Practice with virtual trading accounts and remain disciplined while using them. Don't treat it like virtual cash, treat it as if it were your own money. Good choices are The Virtual Stock Trading Social Network - Olim Dives and Online Stock Market Trading Game & Simulator | Wall Street Survivor
Good luck!
