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What a trader must do before his first trade


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What a trader must do before his first trade

  #21 (permalink)
 vont 
Bangkok
 
Posts: 64 since Sep 2016

This video also contains no commercial value
of any kind, it does not offer any EDGE or
otherwise. It contains no educational nor teaching
value with any reliability nor validity.

Simply put, just watch it for entertainment
purpose. No claim is made if it will ever
leave any good impression of any kind
on any wannabe trader at any level.

Just enjoy, K?

In case, you are curious wanting to know,

how could the trader be so confident
that the next bar price will be heading
lower and lower, instead of spiking up,
like it would happen so very often and
then take him out?

Well, there are supporting statistical values
generated; showing if the next bar is
most likely, more likely, less likely or
very limited chance that the denoted
bar will be about the same, higher or lower
ce cetera....

In the video, you can see the poor trader
dug in, only with a bunch of statistical
values backing his decision.

Poor guy....! But enjoy, traders.

The video was captured on Monday, June 27, 2017 at
the precise time as stamped at the bottom of
the running video, if you were Thomas wishing
more precise details, K?

https://www.screencast.com/t/JXyHJpKVz4

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  #22 (permalink)
 vont 
Bangkok
 
Posts: 64 since Sep 2016

Please let me quicken to add,
there is absolutely no guarantee
or warranty of any kind that
the same set of statistical numbers
and values

will lead the trader to the same
degree of success or failure for
the very next trading session!

Statistical values are just
probability of chance happening....

or not happening....


Do not ever bet your mortgage
on it, even thou it shows 99%
certainty of an outcome or
an event or a trading favorable decision....!


Gonna take a long break. Profitable trading everyone,
especially Jemo. Please do watch your money.

Believe you me, you should not start with more than 5,000 us dallars.

Ask yourself real good now, if you can not keep this 5k trading seed money,
if you can not even breakeven trading with it,

how are you going to protect it from slipping away,
the whole 5k?

If you open your first acct with more than 5k,
how are you going to safe guard it? Do you
really expect any one of us out here,

would or could come out to protect your
initial investment?

Just when you are good and ready,
start with only 5,000 usd and no more, K?

L O L

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  #23 (permalink)
 kevinkdog   is a Vendor
 
Posts: 3,647 since Jul 2012
Thanks Given: 1,890
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While saying "put only $5K in your account, no more" sounds like sage advice, the reality is that with such a small account, a trader's risk of ruin is much higher. What happens a lot is that a trader will start with a small amount, lose some, panic and start making bigger trades to make up for it, and before he knows it, that initial capital is gone.

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  #24 (permalink)
 grausch 
Luxembourg, Luxembourg
 
Experience: Advanced
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Jemo View Post
Please add your own based on your experience. What should a trader know/read/learn/master before placing his first trade or opening his first account ?

Here is mine:
(well I could not post it, my post count is less than 5, but I will post it as I am allowed.)

Thanks

1. Get sufficient trading capital to be able to manage risk effectively and make it worth his / her while.

One of the more effective ways to accumulate sufficient capital is to deposit money monthly into a brokerage and take a swing-trading or longer-term approach to trading by using non-leveraged ETFs or stocks. The best part of this is that it can instil disciple and patience if you are willing to learn. If you can't manage to save up sufficient money then it shows that you really don't have money you can afford to lose. If you lose money on the account through your trading, then it gives you a chance to review your mistakes and try and address them or perhaps even realise that trading is not for you.

2. Understand your risk profile and how extreme swings in your equity can destabilise you emotionally.

Most people completely overestimate the amount of risk they can tolerate. When your account balance is subject to massive swings, then the emotions you feel get magnified. If a position goes against me, but I only risk 0.5% on the trade it is not very destabilising and the position could potentially still be exited for a profit (market willing of course). However, if I risk 10% or 20% on that trade, then in all likelihood I will exit the trade exactly at the "uncle point", i.e. the point at which I give up on the trade and not the point where I get proven wrong. The same works for winning trades - if your account is up 100% for a month, it can be just as destabilising but in this case it would be due to ego.

3. Understand expectancy

Expectancy and edges are often misinterpreted by traders. An edge is a sum of quite a few variables and edges can often hide risk. For instance consider a trader who sells puts in a bull market - he will do well until he blows up in a very short amount of time when a major selloff occurs. Understanding how the variables making up expectancy affect your edge are also very important. Aiming for larger winners can decrease the win %. Increasing stop size will increase win %. Try and find ways in which you can achieve a balance that leads to positive expectancy and then once trading, monitor these variables and adjust where needed.

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  #25 (permalink)
 vont 
Bangkok
 
Posts: 64 since Sep 2016


kevinkdog View Post
While saying "put only $5K in your account, no more" sounds like sage advice, the reality is that with such a small account, a trader's risk of ruin is much higher. What happens a lot is that a trader will start with a small amount, lose some, panic and start making bigger trades to make up for it, and before he knows it, that initial capital is gone.

https://www.screencast.com/t/NSRloxYemro

Enjoy everyone.

Good observation, kevinkdog.

So very sad, but what you described is nothing but the truth, too.

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  #26 (permalink)
 Jemo 
FLorida / USA
 
Experience: Intermediate
Platform: TS, MC, NT
Broker: TS, TOS, IBKR, TastyWorks
Trading: Index, Commodities, Currencies
Posts: 21 since Apr 2017
Thanks Given: 31
Thanks Received: 14


vont View Post
Please let me quicken to add,
there is absolutely no guarantee
or warranty of any kind that
the same set of statistical numbers
and values

will lead the trader to the same
degree of success or failure for
the very next trading session!

Statistical values are just
probability of chance happening....

or not happening....


Do not ever bet your mortgage
on it, even thou it shows 99%
certainty of an outcome or
an event or a trading favorable decision....!


Gonna take a long break. Profitable trading everyone,
especially Jemo. Please do watch your money.

Believe you me, you should not start with more than 5,000 us dallars.

Ask yourself real good now, if you can not keep this 5k trading seed money,
if you can not even breakeven trading with it,

how are you going to protect it from slipping away,
the whole 5k?

If you open your first acct with more than 5k,
how are you going to safe guard it? Do you
really expect any one of us out here,

would or could come out to protect your
initial investment?

Just when you are good and ready,
start with only 5,000 usd and no more, K?

L O L


Your language and approach sound like spam(mer) to me. Thanks but no thanks.

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  #27 (permalink)
 vont 
Bangkok
 
Posts: 64 since Sep 2016


Jemo View Post
Your language and approach sound like spam(mer) to me. Thanks but no thanks.

Jemo dear

You are again so right, so observant and so very sharp.

I concur,

now that I am totally being exposed as a spammer by Jemo,
I shall cease and decease my spamming activity with
Jemo from now on, K?

Best of trading to you, Jemo.

Bye bye.

But pls pls pretty pls, do not tell anyone else, K? I could lose my very lucrative job here!

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  #28 (permalink)
 
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 Big Mike 
Manta, Ecuador
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  #29 (permalink)
jonesie
New York City, NY, USA
 
Posts: 7 since Apr 2017
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kevinkdog View Post
Make sure you have a VERIFIED edge.

This is the best piece of advice you're ever going to get. I think trading psychology materials have their place, but you shouldn't be touching these books/videos, let alone making a trade, until you have worked out strategies with verified edge. I've seen a lot of traders blame bad habits as the cause of their trading failures in cases where they either a) didn't have a clear strategy or b) couldn't prove that their strategy actually worked in the long term. Having confidence in yourself is useless if you don't have confidence in your systems. My 2c...

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  #30 (permalink)
 Jemo 
FLorida / USA
 
Experience: Intermediate
Platform: TS, MC, NT
Broker: TS, TOS, IBKR, TastyWorks
Trading: Index, Commodities, Currencies
Posts: 21 since Apr 2017
Thanks Given: 31
Thanks Received: 14



jonesie View Post
This is the best piece of advice you're ever going to get. I think trading psychology materials have their place, but you shouldn't be touching these books/videos, let alone making a trade, until you have worked out strategies with verified edge. I've seen a lot of traders blame bad habits as the cause of their trading failures in cases where they either a) didn't have a clear strategy or b) couldn't prove that their strategy actually worked in the long term. Having confidence in yourself is useless if you don't have confidence in your systems. My 2c...

Thank you for your input. This brings up the question how does one verify if he had an edge, and sample size etc. I realize answers are almost endless to this question. Thank you again for your input.

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Last Updated on June 29, 2017


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