You are right though. I have also learned the hard way
that the market needs to be respected, and that is something that
we all need to be reminded of from time to time. It's amazing
how gains can make a trader overconfident.
For newbie traders, it's amazing how many will buy high and
sell low. This market can take your shirt if you don't have
any discipline.
Posted by burkmere on 15th of May 2009 at 10:35 am
Nope...I'm not a trader, per se, with my money...more long
term..occasionally I will trade, but love this site more for
intermediate trading/investing...
I think the academic studies as well as the anecdotal
experiences bear me out. I'm just trying to warn him.
Do you know a ton of people who have become wealthy trading?
I have a defined benefit plan..I can become comfortable just
going to work for 30 years....
I won't become filthy rich, but I can become quite comfortable
if I am reasonably successful investing/trading....however, for
someone with no backup..i.e. they are depending on their sole
income from trading (and they have just started), I think there's a
very high percentage chance they will not make it and may lose it
all.
Posted by paige386 on 15th of May 2009 at 08:33 am
Ultimately you have to realize that you aren't trading
stocks.....
You are trading people. Stocks are no different than pokemon
cards. knowing when people are selling their merchandise too
cheaply or wanting to buy too high is what you want to exploit.
Keep your losses small and like you are doing work on being
consistant. Once you are consistant then you can raise the amount
you risk on a trade. When placing a trade have your plan set.
1. entry 2. exit 3. targets
Are you speaking from experience, Burkmere?
Posted by pebs on 15th of May 2009 at 06:43 am
You are right though. I have also learned the hard way that the market needs to be respected, and that is something that we all need to be reminded of from time to time. It's amazing how gains can make a trader overconfident.
For newbie traders, it's amazing how many will buy high and sell low. This market can take your shirt if you don't have any discipline.
Not my from experience..
Posted by burkmere on 15th of May 2009 at 10:35 am
Nope...I'm not a trader, per se, with my money...more long term..occasionally I will trade, but love this site more for intermediate trading/investing...
I think the academic studies as well as the anecdotal experiences bear me out. I'm just trying to warn him. Do you know a ton of people who have become wealthy trading? I have a defined benefit plan..I can become comfortable just going to work for 30 years....
I won't become filthy rich, but I can become quite comfortable if I am reasonably successful investing/trading....however, for someone with no backup..i.e. they are depending on their sole income from trading (and they have just started), I think there's a very high percentage chance they will not make it and may lose it all.
newbie traders
Posted by paige386 on 15th of May 2009 at 08:33 am
Ultimately you have to realize that you aren't trading stocks.....
You are trading people. Stocks are no different than pokemon cards. knowing when people are selling their merchandise too cheaply or wanting to buy too high is what you want to exploit.
Keep your losses small and like you are doing work on being consistant. Once you are consistant then you can raise the amount you risk on a trade. When placing a trade have your plan set. 1. entry 2. exit 3. targets
Take profits, don't be a pig.
Trade well!
Newbie comments
Posted by cdjd on 15th of May 2009 at 08:52 am
You don't have to be a newbie to screw up.
I have been trading on off for many years and I still (much too often) buy High and Sell Low.
losses are part of the
Posted by paige386 on 15th of May 2009 at 09:26 am
losses are part of the game, the key is to keep your losses smaller than your gains.