Too many approaches... thats the problem. Too many ways to analyse and I'm fast becoming an incompetent jack-of-all-trades and master of none.
Like to look at oil and indices. Arm could be twisted to check a few currency pairs too.
Had a bash at a few stock but lost out there too. Timing problems.
I'm to a point where I can call direction quite consistently but timing of entry and risk have been a major problem for me.
What about yourself? What you into?
I've seen that danger myself too. As a novice you have to look into and learn various approaches to get some idea of what appeals, what you think works and what you think you can have confidence in, so that you can really be disciplined and put money on the line.
I think this is one of the hardest things, as you never really know whether you are doing right for wrong. It's very easy to fall into an area of trading, have some success (a good run can last quite a while) while really not understanding the bigger picture and why you are being successful, and indeed why you are not being successful when your luck/the underlying catalyst for your success stops.
The key issue here is to get through this phase while still having enough £ capital and emotional capital to be able to move on and learn to trade successfully and consistently in future. It's hard to keep focussed and keep moving forwards.
Thankfully, i have been through most of this steep learning curve without getting really burnt. I'm approaching the end of the curve. It's funny, when you are at the start and the middle of the curve, you have no idea how far along you are (you sometimes think you do...but you don't...or do you?..), or indeed if it really is an actual curve that has an end at all, or whether you are on a pointless meandering journey to nowhere. However, as you get towards the end, you can start to see the light and the way forwards with confidence, you know that you are on track. You just feel it. Those endless questions have either disappeared or you have answers to them that you know are correct.
I am not saying that you've done it all then. No, far from it, that's the true starting point of becoming a professional trader. The equivilent of passing your driving test if you like.
The way to get through that without blowing up or just losing it, is by keeping positive, being determine, being prudent, very sensible and realistic. You have to be careful that this does not turn into prevarication.
Here's a very breif and basic summary of a good way to approach starting in trading. (The bolded points are not mine, but i can't remember where i got them from, my thanks to whoever penned then first).
1. Focus on trading vehicles/strategies and time horizons that suit your personality and your objectives. Not everyone can be successful at trading (do you really know yourself and believe you can do it), and not everyone can be successful with every approach. No, there will be a small number of approaches that suit a person best. You need to know this, as every small edge is vital in this game.
2. Identify non-random price behaviour while recognising markets are random most of the time. Well maybe not random, but random/complex enough for you as an individual to be unable to predict it with a high degree of success.
3. Absolutely convince myself that what I have found is statistically valid.
4. Set up effective trading rules, including risk management and money management. A hugely important area.
5. Follow the rules.
And just added by me -
6. Keep detailed records and review your performance periodically. Understand why you are making changes (and have good reason) before you make any changes.
and
7. If you are having a losing run beyond what your research says you shoudl expect and do not know why, stop trading and review until you do.
This is the simple start point as i say. From this point, this is where the real learning begins.
Hope that helps.
Syn
