Twitter talk: Finding it hard to find the time to trade? Look at time trading, then you know exactly when to look at a chart rather than where. » 10 Tips For Beginner Traders
Since I have started posting here I have received quite a few questions from readers, fans and enemies (or is that frenemies) regarding how they can make their million dollars a day. I usually tell them if they want easy money, then there is a vacancy at the Happy Ending Massage Parlour down the road, just send me your resume, im sure things will work out. Trading is not about fast money, gambling is, nor is it supposed to be easy.
The potential for enormous wealth is there granted. Look at the pure mathematics of compound interest, the most powerful force in the world (Einstein). But usually things don’t turn out that way. We are after all emotional beings with (hopefully) a life other than trading, things just don’t turn out as cleanly as the columns on an excel spreadsheet. Humans are mistake riddled beings, it’s just some know how to hide them better than others.
You make money when you exit, not when you enter.
As hard as it may be to believe, despite consistent trading for close to a decade, I am not a billionaire just yet. I make some nice monthly percentages, I trade actively around two hours a night, and I have a gorgeous wife, a cute child, a hairy chest and a wooden leg. I still do some programming work (my trade) and will retire (from 9-5) a month before my 35th birthday. I started with $53.60, trading will make that my retirement income.
I don’t however like being (too) rude to those starting out, and so after they strangely decline the alternate job offer, I usually provide the following 10 tips for the beginner trader;
- There is nothing price doesn’t say, we just don’t like to listen.
- Common sense makes uncommon cents.
- “Most technical analysts were originally fundamental analysts, I’ve never
heard of anyone who made the journey in the opposite direction.” (Brian Marber) - You make money when you exit, not when you enter.
- The trend is your friend if your friend is the trend.
- Insert the word “hopefully” before every instance of “will” in your trade idea.
- Get out when your reason for getting in no longer exists.
- You do not know what the market will do, the quicker you realise that, the richer you will be.
- Most people on trading forums are there for the same reason as you.
- Respect your trading elders (not necessarily with the first name of Alexander).
I could go on with more terrible proes but I will spare you the pain, there are many more that one day I may post, but let us know if you have some of your own trading laws.
Joel
6 Nov 08 at 7:15 am
I can definitely attest to that… Using Elliott Wave, I made $14,000 in profit on an $8,000 deposit in about a week.
Most of this was due to pyramiding a straight-line move in the Euro.
My second week, I lost about $9,000 because my head got too big!
Now I’m taking a step back to cool off by reducing leverage.
[Reply]
Akuma99
November 6th, 2008 at 10:51 am
Thanks for sharing that Joel, almost everyone goes through the same thing I assure you. Trade a size that is comfortable to you, you will know which size that is by the feeling in your gut and if you sleep at night.
Best of luck in the markets.
[Reply]
Joldas
30 Dec 08 at 4:48 am
Hello, i am also made 23,000$ in 30 hours with 1000$ deposit. but i have lost that in 2 days again…I am newbie till now 2 months…leanring take control of greed, patience and skilling myself everyday..
Thank you, to your 10 tips.
[Reply]