ASX 0.77% $60.90 asx limited

I really shouldn't offer advice, as I'm just like every other...

  1. 318 Posts.
    I really shouldn't offer advice, as I'm just like every other mug trader but for what its worth...

    A lot of the answers and realisations will need to come from within yourself, from this you can then assess what is realistic and unrealistic of how you view the markets.
    e.g. are you trading or investing?.

    Throwing your entire capital into 1 share and having loose stops, is a sure fire way to lose money. Capital preservation is your number 1 priority. All else is number 2. If you haven't heard of the 2% rule in trading, then google it and find out. You need to be totally dedicated to the 2% rule No exceptions.

    If you like the thrill of spec stocks (from your selection you sound like you do) you need to be aware of the risks involved. If they move up quickly, they can move down quickly.

    You also need an understanding of trends, especially market trends. We are in a pretty strong bear market, so any long position you have now will be EXTREMELY HIGH RISK. Sure you may get the odd bounce, but you again you need tight stops and get ready to get out with the little profit you've made, especially if the trend is still down.

    Also market trend changes are pretty significant events. It changes the whole dynamics of the market and traders need to adjust their strategies. The easy money made in bull markets is just not possible if your long, unless your shorting the market. Shorting also has its risks.

    You need to read more, especially if your trading. Trading is not a ticket to make money. Its a long process of knowledge and challenge. There is also an element of art and finesse involved. but I must stress, keep to the basics, e.g. trendlines, support resistance, volume. Avoid the more arcane stuff, it just confuses the hell out of you.

    More money won't help. So don't think throwing another 20000 in will make you better.

    Its experience you need, so don't get discourage and feel you got to get even with the market. Losing money can be very humbling but it also can be very enlightening, if you are totally honest with yourself and examine why you made the loss without taking it too heart, you really can turn the painful experience into a healing one.

    Learn from all this turmoil, just sit it out and watch the price movements.




 
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