The conservative trade, when you only have $1,000 to trade with, is really actually truly to do something like this:
When highly skilled and successful traders like Big Mike tell you that you're doing it wrong, you should be able to admit to yourself that they probably know more than you do. Is that something you're even psychologically capable of admitting to yourself? This is a really important question!
Why do you think you know more than experts with decades in the field? Ask yourself is this: What meta-cognitive processes do I have for checking whether my lower-level cognition is faulty? It's a question the most successful people I know ask themselves all the time. Put plainly: how rigorous is your thinking, and what do you do to keep it rigorous? Because without rigorous thinking you're just going to be another victim of the Dunning Kruger Effect:
Please know that this is offered with the wish that you'll actually do the right and best thing for your finances and psychological well-being. The above may appear insulting/mean/unpleasant/etc, but I always hope that folks will always
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Last edited by Ryland; July 28th, 2015 at 08:47 PM.
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You needn't spend a dime to learn how to trade. Once you've developed a trading plan and are consistently profitable with it in simulated trading, you can then begin to think about funding an account. If you are never able to reach consistent profitability in simtrading, you sure won't magically get there in a real account with real money.
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Don't bother trading real $$ yet, there's no point.
Chances of you blowing up your account are about 99.9%. When you blow up your account you won't learn anything valuable because at this stage you're just too inexperienced and lack any real domain skill. At the end of the day all you lost was $1000 aswell, so it's going to be easy enough to forget about.
You're better off grinding out in Sim for many months/ years, working towards a methodology that makes sense to you, and then learning how to test your ideas. Do this until you have a strong belief/ understanding in exactly what you're doing, and have a plan that you can execute.
You'll also need to fund an account that's capable of managing 1 lots without sweating too much.(If you're trading ES you need an account atleast 10-20x what you currently have)
"Free markets work because they allow people to be lucky, thanks to aggressive trial and error, not by giving rewards or incentives for skill. The strategy is, then, to tinker as much as possible and try to collect as many Black Swan opportunities as you can"
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I strongly disagree with those saying go on sim. Instead, go swing trade equities. Sim trading futures will just setup more bad habits
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Need help? 1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first. 2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses. 3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make. 4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance. 5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers. 6) Help using the forum? Watch this video to learn general tips on using the site.
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Well, thanks, but they're hardly everything one needs to know . If nothing else, they attempt to put the beginner and the damaged trader on a course that will enable them to rack up a reasonable number of successes and gain confidence. This begins with assembling a thoroughly-tested and consistently-profitable trading plan, the lack of which is the singlemost common characteristic of those I've worked with over the past fifteen years (fear is a close second, largely the result of not having the aforementioned plan).
While I understand the "trial by fire" approach advocated by so many, learning how to trade by trading a micro something-or-other if one is doing so without the sort of plan described above is not much different from learning how to gamble by playing nickel slots.
If one is trading for fun, if one plays the market as if he were playing a video game, if one is seeking the camaraderie of trading forums and chat rooms and so forth, then he is not likely to want to spend the time and put in the effort to develop a trading plan. And why should he? But if one is interested in making serious and consistent money, then a trading plan such as that described above is essential. Without it, he will struggle year after year after year, and to what purpose?
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