miketranz
962 posts
msg #91195
- Ignore miketranz |
4/14/2010 7:30:47 PM
What to do is the question.Anyone can tell you what not to do.People actually pay money to market gurus for this information.If you really want to know how to trade,start trading,the market will educated you.Most of the books you read on trading,tell you what not to do.The problem is 95% of short term traders lose money.Then the bigger question is,who are the "other 5%" who are making it? I'll tell you who they are.Insiders,dumb luck(which by the way won't last long),people who work extremely hard to find an edge and exploit it till it's gone,then go out to find another one.My own market experience leads me to the conclusion that to become the "other 5%",one must specialize in a certain area,or trade only one stock until you know it's every movements.The key word is "know".Most people don't "know" what their doing.The only time you should risk money on anything,is when you "know",when you see a pattern occur over and over again,otherwise you're just guessing.Most people who buy stocks are buying on a whim,a tip,good news,the economy is getting better,emotional reasons,gambling,the list goes on.The market will take their money away so fast,it will make your head spin.It's set up like that,specifically for those people.They are in the 95% club.Don't buy into the hype,work hard at finding your own edge,because no one out there is going to give it to you........
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Venice
82 posts
msg #91220
- Ignore Venice |
4/15/2010 1:05:15 PM
My biggest issue, is staying consistent with my methodology. It seems every other week I am trying out new scans and techniques -- and it is costing me.
I feel that we must continually be looking ahead and developing and advancing ourselves... but I am not allowing what works 'right now' to flourish. Exit points need work too... I get to greedy. I am having a hard time reading price action and the change in momentum. My emotions, I am sure, are clouding my logical reasoning.
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miketranz
962 posts
msg #91227
- Ignore miketranz |
4/15/2010 5:24:28 PM
Venice,try trading just one stock,one method.Narrow your focus,observe price action,then execute.Watch 98% of the time,trade 2%.If you have exit issues,when to exit,try selling into the rush,a good up move when everyone else is buying.Better yet,set a profit target,take the money.No one knows how far a stock will run.But only you know what your average profit per trade is.When it's hit,sell the position.That's your sell zone.How many times have you let a profit turn into a loss? If you're really in it for the money,you'll take it at the right time.......
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crunkle
54 posts
msg #91239
- Ignore crunkle |
4/15/2010 11:21:45 PM
Just my opinion - successful trading is about 10% stock selection and about 90% trade management. Theoretically you could tape the Wall Street Journal to a wall, select stocks by throwing darts at the stock tables, flip a coin to decide whether to go long or short and still make money if you manage your trades properly. Cut your losses and let your profits run.
I've never had a problem entering a trade. For years the most difficult part of my trading was deciding when to exit a position. I'd get out of my losing trades too late and my profitable trades too soon. Took a long, long time (and many $$$ lost) to come up with a system that works for me - at least a good part of the time.
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Eman93
4,750 posts
msg #91686
- Ignore Eman93 |
4/26/2010 8:34:33 PM
Do the opposite....
Everyone is buying should I not be selling.......... I feel like I should be selling here.... so I should be buying.... right?
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jrbikes
624 posts
msg #91694
- Ignore jrbikes
modified |
4/27/2010 2:46:01 AM
How can a trader loose money on a winning stock? by deviating from the plan, plain and simple!
My new name is "The deviating trader"
So long Jrbikes!
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