Whats your trading secret

[ketank]

If you dont mind sharing.............For all you who have made good money from the stock market, what is your secret, or advise?

the reason i ask is because i have been to 6 free seminars, 2 paid courses, spend 2 hrs a day analysing chart, indicator..etc.
The point i'm trying to make is i'm working VERY hard trying to be succesful but i'm NOT making money...... ant tips

 

[hornblower]

kiss principle,
keep it simple stupid,
shares trade with in ranges,
buy at the bottom ,sell at the top,
sell at the top, close at the bottom,
at the moment the stock market is at a high level , some traders feel the we will be soon ready for a correction
so you need to be looking at what shares to short ,
as the risk reward is poor on the long side
THINK, and THINK AGAIN
good luck
hornblower

 

[sidinuk]

I would say that the most important thing is to develop your own trading system. Other people can teach you the mechanics of trading but only by building your own model and extensively testing it can you gain the confidence required to trade it consistently.

A simple guide to building a trading system:

1. Pick an instrument (e.g. e-mini S&P500).
2. Decide what timeframe suits you. E.g. intraday or end of day.
3. Find examples of the sort of moves you want to try and capture - eg days when the market starts quietly and then trends in one direction to the close or a particular technical pattern.
4. Devise an entry rule and an exit rule that will capture those trades. Eg take the break of the opening 30 minute range and close at end of day.
5. Test those rules over at least 3 years of data, more for an end of day system.
6. Examine the maximum adverse excursion of all trades and devise a stop loss rule accordingly, also examine the maximum favourable excursion of all trades and set targets accordingly.
7. Look at ways to improve the basic system - eg does options expiry have an effect, how about seasonal factors like the day of the week.
8. Look at the historic maximum drawdown that your system has produced, double it and add on the margin requirements. This should be your very minimum account size per contract traded. Develop money management rules based on this.
9. Write down all the rules for your system.
10. Repeat the above for 5 different instruments over a couple of different timeframes to form a completely diversified trading plan.

Once you've done all that - start trading your plan!

 

[Strategic Trader]

only listen to professionals - but then listen real good

 

[frugi]

If I may be so bold as to post another sidinuk gem:

There are two types of trader:

1. Those that think that they somehow are just better than other traders and trade from gut instinct and basically try to make it up as they go along during the trading day.
2. Those that trade in a consistent, systematic way. Looking for the correct set-up, waiting for the correct entry and managing their trade - all according to predetermined rules.

group 1 will lose to group 2 in the long term as they have no edge.

Realise to the depths of your being that you need to be in group 2, despite the fact that it will feel strange, arduous and somehow instinctively wrong. The market continuously tries to persuade you that group 1 is the happening place to be - don't believe her!

 

[the blades]

If you dont mind sharing.............For all you who have made good money from the stock market, what is your secret, or advise?

the reason i ask is because i have been to 6 free seminars, 2 paid courses, spend 2 hrs a day analysing chart, indicator..etc.
The point i'm trying to make is i'm working VERY hard trying to be succesful but i'm NOT making money...... ant tips

not a secret, but my "advice";

obtain the ability to go long and short - spread bet / CFD etc....
buy on relative strength (rising prices relative to market)
sell on relative weakness (falling prices relative to market)

there are some very clever people out there who will significantly outperform a simple strategy based on this. But you will make money this way.

All IMHO.

UTB

 

[Skog]

If you dont mind sharing.............For all you who have made good money from the stock market, what is your secret, or advise?

The only tip I can give you to gain an edge over the rest of the crowd is to discard all the lagging indicators and focus on price and volume analysis. If you understand the realtionship between price movements and volume and are familiar with your respective trading instruments movements you will have a statistical edge over your fellow traders and have a good foundation to further develop your trading skills on.

-Skog

 

[GotGold]

Good thread guys keep it going.........

"If you use lagging indicators for entry and a trailing stop-loss for exit, your loss making trades will outweigh your winners"

 

[zigglewigler]

No secret.

Are you mentally mature enough to apply a system rigorously?

The markets will control you until you develop the right trading psychology.

System development, back testing etc is easy.

But that little voice in your head that says you are inept will become a self fulfilling prophecy.

Traders loose money all by themselves.

This is not a business for the ordinary mindset.

 

[ottos]

Options might be for you

If you dont mind sharing.............For all you who have made good money from the stock market, what is your secret, or advise?

the reason i ask is because i have been to 6 free seminars, 2 paid courses, spend 2 hrs a day analysing chart, indicator..etc.
The point i'm trying to make is i'm working VERY hard trying to be succesful but i'm NOT making money...... ant tips

If your problem is that you can't pick right direction, you might consider options on QQQ or other liquid issue . Wait for volatility to drop, then buy strangle, or straddle . Always compare delta to price so you do not overpay .

 

[ketank]

GUYZ I MUST THANK YOU FOR YOUR INPUT!!!!!!!!!!!!!!!!!!!!!!!!!

Some really interesting Tips/coments......... I 'm gonner act to what u have said!!! I'M FOCUSED!

THANX A Million!!!