Update - After a few weeks of bad demo trading and feeling overall down about my stock education, things have turned around slightly. The market is really starting to 'click' with me and I have had some (not many!) well placed trades. I'm finding sometimes the market is just in a rut and its a good time to do some back-testing or turn off the PC and study. Don't waist your time on the market if its confusing as hell. You can always back-test if necessary (going over market history).
EDUCATORS: Without a doubt I'd say 99% of stock market educators are a bunch of penny pinching ass-hats so out of touch with today's common man they should live in a cave. A slogan of "can make you rich" can apply to anything if you're passionate enough. Stocks however can make you poor - very, very poor. They should only charge a fee IF you can make a consistent profit. Also, educators need to meet their students. If they don't, stay away from them.
DEMO ACCOUNTS: I've found using my brokers Demo Account has helped me gain confidence and learn from tons of mistakes. All stock market "educators" tell you to trade real money but they're not the ones struggling with bills, fee's and losses. It also helps to learn how the software works, perfecting the layout and to allow making silly mistakes. A basic (free?) broker account with a demo option is a must for new traders.
It's been a month since I started trading again! Nearly everyday and night I've been watching the market and have learned a lot (and trying to study). Emotional trading has been a consistent problem but now I find my nerves are better and making trade plans ahead of time easier. They don't work most of the time but the learning kicks in when you press that trade button. It's tough. I can see why so many fail.
After a month of getting a new broker, learning CFDs\FX market-things are going well. No profits yet but that's fine as I'm learning a lot. Goal now is to control my risk and emotions. I've realised I hesitate after making a plan, missing the trade and once it does go my way I chase. Chasing stocks has led to my losses. To fix this I'm going to stop trading and go over my strat and study the market.
If you stick with stocks its amazing how much your journey can change over a few years. My experience has been really difficult and disappointing yet I'm still here. I've gone from learning to trade penny stocks and now the global market and stocks to CFDs. Learning from US traders to AUS traders and now signed on with my 4th broker. I don't come here much so here are some tips to anyone who cares to read them. I'll post them separately below.....
2) RISK-The most popular 'courses' for traders is to short Penny Stocks which are 2 of the hardest things to do on the market. The risk is also unlimited. It's possible sure but very risky. I feel this is not an option when starting to learn to trade and new users should focus on buying stocks\pips on a daily chart. It's slower, far less risk and a good learning point. There should be no stress when trading.
3) GURU: Pro teacher in trading. I don't know anyone who trades. Its a way for me to get help and currently Im on another private trading course here in Aus just for that reason. Unlike the US courses, I have spoken to my teacher multiple times and he has actually helped me a lot. If my current course works out I'll post more info in a few months. Is it perfect? No but has been invaluable in giving me skills I needed to progress. It's been 1 month so far!
4) US vs AUS: I've since moved from ETF (going long\shorting shares) to CFD trading. Americans don't have access to this style of trading. I'm finding it cheaper but you do need a good trading system to use it affectively. There can be a ton of fee's with shorting ETF's and the risk is too high in my opinion (but very profitable). With a CFD brocker I can go long\short without much fuss and use the world markets and currency's. Flexability is key and I'm learning to branch out where the money is
5) Emotion – It is true, most of trading emotional control. Its so easy to not want to get out of a trade or even enter one due to greed or fear. If you're thinking of learning to trade you need to think logically, not emotionally. Everything is pre-planned and should be stress free. If you're highly emotional, can't have a routine, lazy, bad with money or anything that would stop you taking trading as a very serious career path then start improving yourself before you try to improve trading ski
To anyone subbed to my Profitly profile, I will return eventually. Best not to ask questions as I don't come here much an it has been a few years. I do like the site so I'll be back eventually. My views on trading have changed a lot since I was last here (experience does that I guess. Good an bad) and hope to create a new blog that will be helpful to new non-US people. Good luck.
@MarkAus Hi Mark, have you heard of Kunal Desai from Bulls on Wall st? What do you think of him? I'm new and looking to gain as much good info as possible. But it doesn't seem your very happy with the Gurus for the price. What would you recommend for a brand new person to trading with small account?
Hi KC. I'm nearly a year late with a reply. Don't come here much! Never heard o Kunal desai. I avoid overseas traders now. Not worth my time or money. For starting out? Save your money. Get about $10k saved just for trading. Find a trading system that works for you. Once you have a system (recommend longer term trades to start) make very low risk and cheap trades. Once your system works, up the trade amounts. Do things slow. Later learn to trade a wider range of the market. I'll post more when I
@cwood by best looking charts, do you mean highest upside potential? and how do you search for earnings winners? videos aren't too descriptive
@PhilipHegarty7 best looking chart would depend on your strategy. In my case i look at support and resistance. Both intraday and daily in comparison to the closing price. Since I am long biased i look to see that price closed near high of day with strong volume. If the closing price is too far from the high it doesnt make my list because it may take a while to form another breakout.
^ This.
@PhilipHegarty7 By best looking charts, I mean the charts that fit proven price patterns. I have posted a lot of repeating earnings winner patterns on here. I use a website dedicated to low priced earnings winners. Send me a direct message if interested, can't post external links on profit.ly anymore.
Robinhood offers commission free trades, great for small accounts, with other brokers 20 bucks to enter and exit will make it way harder, even to breakeven. check out these recent trades of mine, one with about $140 bucks and the other with about $280. Both done via robinhood on small practice positions. http://profit.ly/1MsR3J http://profit.ly/1MsSLh Just got to focus on the right setups that work for you
Go to college and max out your loans go all in on trading and leave country if it doesn't work out. That's my plan anyways. Kappa Pride also http://bit.ly/1UxKLaJ
Im no guru but I've done it tough in life too. Study trading in your spare time but focus on creating a better income. Always look for other jobs online and even send company's your resume. Be really proactive here! Resume & job interviews should be top of your prioritys and something will pop up. I found IT help desks a good way to get career skills.
Look at jobs out of town (Be willing to move) and live as a minimalist (you don't need smartphones, fancy car, designer clothes or buy take-away). When you can afford to trade $2000 or $5000 then you're nearly ready. Paper trade ($10k) and take it seriously. When you start doing well try actual trading. Good luck. Its a start.
Backtesting tip: I use Metatrader4 demo as daily or hourly charts. Have 3-5 days on the screen and screenshot with the Windows 'snipping tool'. Draw on it with notes, lines etc and learn what you can. Delete, change chart, start again.
Another platform to check charts is.tradingview. You can draw on any timeframe and have it show up on all the others. Its super smooth and flexible. When I get my trading profitable I'll be paying the fee but it can be used free.
Trade Interceptor is the best software (mobile and PC) outthere to practice trading. You're in control of the charts 'realtime' motion so you can practice super fast. Use the Gym option to do so.
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