Seriously wanting to get good, not sure how.
TA indicators are seemingly straightforward, where does the skill come in?
thanks
Trading indicators are best used along with money management and good risk control, using trading indicators alone will not enable you to be a successful trader, even if you learn everything about trading indicators the market is just too random and unless risk is controlled, over time your account will slowly get wiped out, regardless how good a “trader” you think you are.
This question was about trading indicators and there have been some pretty good answers that should help in your trading, and especially in relation to trading indicators, the answer has been posted in the categories listed below:
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Honestly the trick to being a good trader is simple. Don’t let it go to your head. The reason people lose money or whatever is because they believe in some magic system or trick that will work every time. That just doesn’t happen.
All you really need to know is this:
1. Buy low, sell high. compare the stock price with the average price for the week, if its lower buy, if its higher sell.
2. cut losses. you are NOT going to profit every time, its just a fact of the universe. If your favorite company is losing money don’t go down with it. lots of people lost money with Level 3, and Cisco. don’t let it happen to you, if things for the company look bad or are going down, don’t be hesitant to sell.
3. avoid low volume. If a particular equity isn’t trading well, avoid it. Stock prices move on volume.
4. Buy the rumor, sell the news. buy something on the rumor, like palm was developing a brand new product the palm pre. once palm releases the news about it the stock went up, sell when every one else learns about it.
5. Be brave when others are scared, be scared when others are brave. its an adaptation of warren buffets little saying, and totally true.
now don’t put all your hopes in one basket, and try to avoid the lure of penny stocks ( anything valued at under 3 dollars.) stick with companies with regular ups and downs, not the crazy ones that jump 150% in one day. Dendreon was great for the super lucky ones, but that isn’t the case 90% of the time. I try to stick with Reits and financials, they aren’t going anywhere and have a consistent up and down, the rest is timing!
Don’t gamble. Accept losses and move on. Be prepared for variance and stick to the plan!
The new trader must realize that, for example, a 60% win rate might be very profitable, but that also means that 4 out of 10 trades will be losers. Variance can be brutal. Just because you may lose 4 out of 10 doesn’t mean the losses will come in a perfect order. Cold streaks of 10 or even 20 trades can and will occur with regularity. Many traders will give up on their trading plans just as a good run may be right around the corner.
Loaded question.
Trading is straight forward. The skill comes in with emotions and discipline. The trader who keeps his emotions out of the equation and sticks to his plan is the trader who will accomplish his goal.
How do you get good? Practice. Learn from failure but don’t dwell on it. Practice. Find a mentor. Practice. Don’t let your emotions control your actions.
Many people try to convince the masses that anyone can trade because all you have to do is empower yourself with a strategy or psych games. I don’t think that’s true. If you dedicate yourself to trading it is possible, but not everyone is cut out for it.
the problem is people get excited and try. lose money. try again. lose money.
As a wise wrinkly frog once said,
"Do or Do not. There is no try."
Practice my friend, and practice well. Develop a trading strategy (or adopt one that already exists) and FOLLOW IT TO THE LETTER. If you have no experience at all then I highly recommend you paper trade at websites like http://www.kaching.com or http://www.updown.com they are free to sign up and paper trade your strategies (i prefer kaching over updown).
After you have a strategy or system in place then you have to follow it exactly, even when it loses money. Over 90% of traders who have strategies or systems never follow it through all the way and lose even more money then they were originally going to if they had followed the system. Good traders follow the system. As for "skill", the skill is overcoming your emotions and not getting attached to your holdings (be it a stock, or a currency or commodity or bond or ETF or w/e). You may love Nike as a brand, but as a stock, are they good? Maybe not but because you love the brand so much you decide to hold on to it and eventually lose money. Not a smart move. That’s where the skill comes in. Good luck.