Well, it's been a little over four months since I began this journey.
Here's a recap of some of the things I have learned this far:
I have devoted 10-14 hours a day studying the market, videos, charts, and more.
Knowledge is power.
Although I'm still lacking confidence - fear sometimes over powers me from making a trade - but there will be a point where I am able to replace fear by believing in my plan that has been meticulously put together.
I'm developing my own style. I'm not a Tim Sykes - no offense Tim, and I don't want to be. I want to bring my own personality to trades and I have learned the lessons I've used in the past (long term investing) can definitely be used in day or swing trades.
For some reason, I always thought there had to be a catalyst that propelled a stock in either direction.
I would see good news and the stock trends down. Whaaaaaaat? Vice versa.
Got it. It does NOT take a catalyst to move a stock.
I mean, think about it, how many traders are all over the world, many watching the same stocks were are.
It only takes a few of those traders to change the dynamic in the market.
I'm old enough and wise enough to understand there is manipulation in just about every aspect of life. But I had no idea the manipulation was as widespread as it is in the stock market.
When I saw a bid or ask flash on Level 2 in front of my eyes that was - in my opinion - absurd, it was. It disappeared like a magician doing on act on a Las Vegas stage.
At first, I thought, "What was that?"
Some trader holding a bunch of shares he/she wants to unload wants to manipulate the market on one direction or another.
What do they do?
Place a huge order to scare the bee gee bees out of anyone in the stock.
Problem is? Prove it.
Like the SEC is going to investigate someone who placed an order for 500,000 shares on an OTC stock that was "cancelled" - and I use quotes loosely.
Yeah, not gonna happen.
Manipulation is alive and well in the stock market.
5. Don't Trade.
Sorry, but here comes the momma in me.
Noobs, don't trade, okay? It breaks my heart to read a young man or woman lost a good chunk of money.
Especially when I've seen them in the main chat asking questions they should already know the answers to!
If you're asking what does o/n, level 2, p/m, a/m.
Should I dip buy this?
Should I hold this o/n?
One of my favs (NOT), "Where's the Money?"
You are not ready to trade.
Ever wonder why 90-95% of traders blow-up their account?
YOU ARE NOT READY.
Study, study, study, and then go study some more.
Sit, SIT AND OBSERVE the chatroom for one month and learn.
You will learn who the traders are that know their stuff and learn from them.
After you have a good understanding of:
- Level 2.
- Market Manipulation.
- A stock can go up or down with NO news.
- You understand that anything, ANYTHING can happen in a trade.
- You understand you don't need to know what is going to happen next because you have a plan (that means an entry, exit, and if your trades goes south (GTFO). Get the F out.
- There is a random distribution between wins and losses that defines your edge.
- Your edge is simply an indication of the probability of one thing happening.
- Every single second in the market is unique.
When you feel you're ready to trade, open an account that doesn't charge you a brokerage fee if possible.
ETrade has a 60 day free trial - no brokerage fees.
Now, put your theories to a test in small lots and I mean small lots.
10 shares of $XYZ at $1.
Not only will this give you confidence in your trades, it will help you become a better trader.
Sorry I'm long winded. I'm a writer. What do you expect?
I sure hope this helps at least one of you fellow traders.
See you in the chatroom.