Excellent article Russian
One of the best I have read
I agree with the author's thoughts entirely
It is funny
Once you realise that things are actually quite simple in the market
And your trading plan reflects this simplicity
$$$$$$$ starts rolling in
Too many on HC over complicate things IMO
And don't know how to manage risk through correct money management and position sizing e.g don't plonk down a large position on a sub 1c stock as a pip or 2 move on the wrong direction might cost you $5k or more, wiping out a week or more's profits
Go small on the real mongrels in other words
A few of my other rules that I have learnt over time.........
sell at a predetermined profit target
Don't go in hard on illiquid stocks
Use stops - don't fight the trend. A stock that breaks a previously identified SL level will almost certainly go lower
Don't be fully invested in uncertain times with low volume
Don't chase a stock that has already run way past breakout
Most discussed stocks rarely provide profit
Go in bigger on liquid small/mid cap breakouts
don't buy in hard on the morning of a +50 pt open
Remember - the market is just one big cycle that repeats over and over
Never believe the story on the micros, it's all a lie. Mgmnt, registry, cash on hand, debt, recent raising details and who's net buying or selling in recent weeks is all that matters. Hot sector runs can provide amazing profits. Dont fight a sector trend e.g. Uranium in 2006/7 and the current mobile mania bunts action
Believe your gut over sticking too stubbornly to a predetermined plan - you need to be able to adapt to be a consistent winner. This takes experience
You will never take all the profit out of a move - a big chunk of a move is a great result
Get rid of the red stocks in your PF. You will thank yourself later e.g WAS
Let a penny run hard that is clearly in an uptrend with higher obv, increasing volume, higher lows e.g PAA. Don't forget to use a stop.
Multi year breaks are good. The longer the time frame before a break the better.
Feel the beat of the market. Each day/period of the year has a temp. Oe must trade according to this tempo. This takes time. Years.
Often a initial break can look weak and retest the break area before an explosive move up. Look for a higher low test of resistance then a higher high and explosive move up to next level of historical resistance.
Most people lose by not having a plan and being disciplined. Having a plan that is not the best in the world is better than having no plan at all.
Don't waste your time reading AFR, buying magazines or listening to so called experts on the TV. It's all spin. The media is never right.they also try and tell you no money can be made from trading micros. That is a lie.
Stocks always go higher in a bull run than people think. Conversely in a bear market stock always go lower than people think. Pick your timing. Back your judgment. Note: this takes years to understand.
Don't talk to friends and family about your trading. They don't understand. Keep your family, social and trading lives separate.talking to friends and family about a big win is very uncool.
Have fun. It's only money. Let out a few ridiculous phrases on the Hot Copper day trading forum on a regular basis. Ok daily basis. Life was meant to be laughed at. Far more important things to get all serious and uptight about.
Don't get too excited over a win. Don't get too down about a loss. Don't get cocky. Losers are cocky.
Believe in yourself. You can be a winner.
Note: these are my rules. They are not yours. You need your own rules. Everyone has a different trading style.
Good luck. Bring on tmrw punters......
- Forums
- ASX - General
- advice for a young trader ??
advice for a young trader ??, page-61
-
- There are more pages in this discussion • 16 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Featured News
The Watchlist
EL8
ELEVATE URANIUM LTD
Murray Hill, MD & CEO
Murray Hill
MD & CEO
SPONSORED BY The Market Online