Australia's largest stock trading and investment forum Australia's #1 stock forum

Short Term Trading Week Starting: 1st Aug, page-371

First 371 Last

Share
Profile

Follow
952i

2,007 Posts.

968

03/08/16

21:59

Post #: 18439105
Share

Originally posted by nambo1 ↑

Thanks for your sentiments @Banker. What started off as an intention to offer some words of support to a fellow traveller on the journey towards financial security ended up as a sort of confessional. Truly humbled by the response. Maybe my early experiences resonated with a lot of people.

I've often thought what could have helped me in my first stint avoid the trouble I got into and came up with the following list:

- Knowledge of supply and demand and how it affects the share price.
- Basic knowledge of the FA of a stock and some grounding in TA. I strongly believe there should be a standard basic TA quiz you need to do before you are able to start trading on a personal trading account.
- Eliminate FOMO as much as possible. It will lead you down the road to ruin. As @minoil always says, there will always be another stock that will come along.
- Lack of hubris and ego - Just because you have a few successful trades early on, doesn't mean you know what you are doing. In fact it causes problems down the track because you can't identify the error as you are doing the same thing when losing money as you did when you had a few trades. Of course no one wants to think it can be a fluke.
- Lack of emotion and not falling in love with a stock. It is understandable to an extent. You think you have found the best thing since sliced bread and get a boost when it goes up. When the price goes down, you get mad and can't understand why others don't see what you do in the stock and get all emotional and can't bear to sell out at a loss.
- Following and buying any old stock tip you see on forums without investigating for yourself first. What is the motivation for the person spruiking the stock? Are they part of a trading syndicate trying to manipulate the price for their own ends, a paid shill, an average Joe? Trust no one initially, including myself and always keep your guard up. Read their posts objectively. Do they have a history on the stock threads of coming in like a blowhard, posting about XYZ about to breakout, creating excitement and then moving on leaving you high and dry after the SP falls?
- Read the STT knowledge library. Wasn't around when I started but IMO should be the first place people who are new to the market and HC should go to. There is a link to it at the start of every weekly thread.

Having said all that, sometimes you need to wear a big loss to learn a lesson. Some learn better through personal experience than reading about what others have gone through. I just thought some of the points may be of help to a newbie even though every so often one of the wise old heads (eg Old Stud/Foss ) posts something similar to what I have just done. There are always a few new posters here and no doubt many more who just read without posting who could find something useful in this post.

Philosophy over. Next post will be a chart.

Expand

Great post, agree with all your points

Some of the things I wish I did to make the last 6months easier
- Position sizing: Lower it. My average position size is 1/10th of what I was using for my very first buys and sells. This has a lot to do with letting down the ego and greed.
- Know FA....I still dont know FA lol it honestly takes alot more effort and experience than TA imo. I guess I will know what to look for as I spend more and more time on the market.
- Have a plan, and stick to it. I dont buy on the spot anymore unless I've completely planned the trade the night before at the very least.

Anyways here are some charts:
Updates:
JCS - Spoken about this enough, so make what you want of the chart

TYX -

RVR - How frustrating missed it by a pip, and going to be a one bagger soon. Gonna take me a while to get over this one lol

Others:
MDR - For the adrenaline rush seekers

MCT - I like and will go for an entry once I get filled on a few others I'm waiting on

XPE - Could move

Others I'm liking that will provide entry soon:
HZR, FGR

Also patiently waiting in line for one other stock which I will post chart either tomorrow or day after once I get my fill.
16 Upvote

0 Great analysis

Reply

Top Stories

Revolutionary inverter technology leads the clean energy charge

From the Floor with Kim Beazley at Diggers and Dealers 2024

RBA keeps rates steady at 4.35%, reflecting expectations

Wealth Within: Why the stock market isn't going to crash and more with Dale Gillham

From the Floor with Federal Opposition Leader Peter Dutton at Diggers & Dealers 2024

There are more pages in this discussion • 362 more messages in this thread...

First 371 Last