also further to @JohnDeere99 's query in the weekly thread.. As...

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    also further to @JohnDeere99 's query in the weekly thread..

    As @minoil mention, check out the 5 grander thread and see how others are approaching things.

    The mix of people on HC and within the STT thread alone are very diverse, some are here with $1000 seeing if they can earn extra few bucks for Christmas, others are in the Top20 lists of the stocks being tipped and traded. As such, strategies will vary wildly.

    With $2000 a trade, a pip on a 0.4c stock is not a bad way at all.. 25% in a pip presents a pretty good return but unlikely to be possible (routinely) if you are punting $20k an order.

    With the 5 grander there is no hiding, nor ability to slosh bigs orders around .. just an attempt to build a little pot bigger over time. @forrestfield has shown the potential and there are several others chasing his coat-tails.

    The difference in my observations between those that stick at it ultimately remain become and profitable vs those that don't is learning what works and what doesn't. Different for each person but ultimately doing the same thing over and over (if its not working) is bound to end in tears .. or simply no cash left to keep playing.

    Risk management and position size is also crucial, especially if you only have a couple of thousand dollars.. As tempting as it is to go all in, staying small and scraping little gains to start working out what works and doesn't is likely to reap long term rewards. The alternative is a wipe-out and back to work for a few months to save up more money for round two!

    Making mistakes is annoying, loosing money sucks.. but all part of the learning experience.

    Keep observing, keep trying, try and identify the characteristics of those stocks that bunt (ideally.. what similarities they had before they go crackers).. Most importantly don't;

    • Double down in a loosing trade
    • Turn a trade into a long-term investment
    • Try and beat the market
    • Try for a short term trade in a falling ASX200 stock (or anything heading downward for that matter) unless you are very confident and have a reason for the bounce.
    • Assume that because a stock once traded at $abc and now its only trading at 30% that it will ever go back up for that reason alone.
    • Follow a poster or tip into a stock without looking through everything yourself first
    (I am guilty as charged on all of these from time to time .. trying to do each less) Wont give recommendations on what you should do, but just sticking to the reverse of each of the above is a cracking start imo.

    Good luck.
    Last edited by webbj: so many silly typo's 21/10/16
 
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