I'm currently saving up some capital to invest in the markets. Between $1000-$2000 is my aim to begin with. I downloaded RobinHood but i've heard the wait list is quite backed up.
I'm on the Investopedia stock simulator and LQ, LXRX, and GBSN are my big traders currently.
I have high hopes for GBSN and LQ because they both had large downward trends that I bought at the bottom of, and I believe they will come back up shortly. LXRX just had a large downward spike but the upward trend looks hopeful.
Anyhow, I'm clearly pretty new and open to advice.
What trading platform should I use?
What are some good strategies for a beginner?
What are the fundamentals I should focus on as a beginner?
What are good skills and ideas to have entering in?
Best case scenario is I get very good at speculation trading, achieve financial independence, and develop the ability to generate money from the markets.
Worst case scenario is I lose some money that I would have ended up spending on trivial things and come out with the understanding that speculation trading is not for me and that I should focus on more long term investments.
Honestly, neither one of those are likely to happen. Very few traders are natuarly gifted and can pick up trading quickly. Very few traders lose just some money. There is a 90%+ chance of losing all your money.
This is more realistic:
Worst case is you give all your money away to the market and not have a clue how you lost it. Even worse is you re-fund your account and do it all over again.
Best case is you don't use real money at first until you have a basic understanding of the market. Then you make some small trades to understand how you react under market pressure. Once you can control your emotions then can start trading larger sizes.
Having been where you are at I would suggest opening a small Forex account and learn about the markets. Then go over here:
Both Fed Chairman Bernanke’s remarks yesterday and President Obama’s speech last night about his jobs plan; combined, failed to reassure the market that a solution to the country’s economic woes was at hand, and the …
Start reading about September 2014 through current date. Pay attention to tigertrader.
You might serve your interests better if you don't plan to fail from the start.
Read stuff, you need at a minimum to read topics on having a trading plan, trading psychology, trade management, risk management, price action, auction market theory and other stuff. This is all before you place your first trade.
Hoping something will come up after it's gone down a lot is not a plan or a method, a lot of people do that - they think it's cheap, until it goes even lower and then they turn from a speculator into an unintended long term investor.
Anyhow all this is done to death in other threads, go have a read - lots of good stuff here.
That's pretty good.
I appreciate the constructive comments. I'll certainly read up on fundamentals and get a good understanding of how the market works before I throw any real capital at it.
The following user says Thank You to Soitgoes for this post:
Could you explain to me what forex is and what advantages it has over other trading platforms? I got on the site and started an account but havent downloaded the actual software yet.
The question you asked on this forum is is one that is asked probably once a week.
I am not even sure why people even answer it now, maybe to get a thanks, or just to demonstrate their knowledge, and it's same thing, read, demo, do mini forex, etc. This is not bad advice coming out of the guys, as reading and learning is part of the process.
But, here is something that is never mentioned: It is VERY hard to become successful at trading if you did not achieve success in any other area. The most successful traders that I meet, and I actually know they are successful (not just by their word), have done something successful prior to trading. They have had above average achievements.
This is not a coincidence, because to achieve above average success you need above average sacrifice.
Something that most people are not willing to go through. Also, you have many setbacks, and I mean many, so to take "losses" once in a while is part of the long term plan. The entire outlook on trading after success is different than having no success.
Success is not necessarily monetary. It can be reflected in many ways, and it is not always related to higer IQ. But all long term achievements, are tied to a strong work ethic. This is what you will need as a trader as well.
It is sad that after 500K threads you did not go through each platform review, and used the search box to find topic by topic all the other things you are after. This is what I mean by effort.
Matt
Optimus Futures
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The following 4 users say Thank You to mattz for this post:
Trading: The one I'm creating in the present....Index Futures mini/micro, ZF
Posts: 2,268 since Nov 2011
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I wish I had something like Big Mike's back when I entered into the trading world. I think it's great you are asking for help. If I could offer some suggestion to myself I would say learn as much as you can about YOU. I'm not being funny here. The hands down biggest hurdle in your way will be yourself. This business is about personal grow. Learn about the event of August 18, 1913. And ask yourself what you would have done had you been there.https://en.wikipedia.org/wiki/Gambler%27s_fallacy
This business is about thinking in terms of probabilities. We are taught in this culture to be right. If you are correct in school more than the next guy/everyone you have the brightest future. If you are right in your career you find yourself moving up the company ladder. They do not promote the guy that is wrong more often than the one who is right. Trading is vastly different than this and one has to train it into their self and unlearn what the culture has ingrained into you so perfectly.
Learn about logical fallacies. How you think.
Get as much screen time as you can just watching charts. Look for support and resistance on big time frames and don't worry about the small wiggles on lower time frames its a trap many can not get out of. A micro product is a good idea with a tiny acct...the only idea. Spot Forex (FX) has this but its not a centralized exchange and one has to pick their broker VERY carefully. The CME has micro products too.
A "market order" into the market is generally aggressive, you get filled right away but not at a guaranteed, and only pairs with a opposite side 'limit order". A "limit order" is generally passive, you wait in line to get filled but at a guaranteed price or better, and only pairs with the opposite side "market order".
Only worry about how much you are risking NOT about how much can be made that part takes care of itself. Aim for base hits NOT home runs ....Moneyball.... did you see that movie about baseball? Same idea.
Always remember the traders that have done the homework, have all the resources under the sun ie massive banks etc are just wanting and very ready to transfer your cash into their acct in a legal manner.
Ron
...My calamity is My providence, outwardly it is fire and vengeance, but inwardly it is light and mercy...
The steed of this Valley is pain; and if there be no pain this journey will never end.
Buy Low And Sell High (read left to right or right to left....lol)
Trading: The one I'm creating in the present....Index Futures mini/micro, ZF
Posts: 2,268 since Nov 2011
Thanks: 7,171 given,
4,401
received
Forex is not a trading platform it's the cash currency markets, currency pairs. FOREX is short for Foreign Exchange. The largest markets on the planet. https://www.Investing.com/ has free real time charts.....start there. Google the word forex and spend sometime reading. You seem very young. Take you time you have much to learn grasshopper.
Ron
...My calamity is My providence, outwardly it is fire and vengeance, but inwardly it is light and mercy...
The steed of this Valley is pain; and if there be no pain this journey will never end.
Buy Low And Sell High (read left to right or right to left....lol)
The following user says Thank You to Blash for this post:
A disciplined trader will be more successful with a faulty trading plan than an undisciplined trader with a perfect trading plan.
Ask the following questions throughout the day:
• What is the market doing?
• What is the market trying to do?
• How well is it getting it done?
The Fundamental Truths (Mark Douglas – Trading in the Zone)
Anything can happen.
You don’t need to know what is going to happen next in order to make money.
There is a random distribution between wins and losses for any given set of variables that define an edge.
An edge is nothing more than an indication of a higher probability of one thing happening over another.
Every moment in the market is unique.
Sharmas
The following user says Thank You to sharmas for this post:
So i've been watching this stock for a few days and I liked it right out of the gate.
I reviewed the company and they seemed to be generating some value but the share prices dumped because if I recall correctly, they were restructuring warrants. This seemed to be fear based to me and not indicative of the actual value of the company so I bought 10000 shares on my sim at .05 and sold at .13
The two other plates I have spinning are LXRX and LQ. I have high hopes for them as well.
