Hiif i can add some quick lesson i have learnt over the past 4...

Hi
if i can add some quick lesson i have learnt over the past 4 months of fulltime trading for myself.

i am only an amateur so treat it with a grain of salt and there is nothing new here just a different weighting of priorities.


1) You need to have skin in the game to learn about your own emotions. I find emotions play the biggest role, as they can interfere in your execution.

2) stock selection is only 10% of the problem. I only trade about 5 stocks and focus on those. There is too much information out there. You need to sort through and decide what you will read. There is a lot of good and misleading stuff on HC...but the daytrading forum and HLL's morning brief are a must read for me.

3) Let profits run and cut losses. An executed stop loss at 10% is better then one at 50%, that is something i am still learning...and the recent correction belted that one home.

4) Money management (allocation of capital) and trade manage (buy and selling, stop losses) are the 2 main games.
You need to continually review these strategies, more important then stock selection (ie troving 100s of stocks to find the right ones). Again i deal simply with my 5 stocks, they are spread across different sectors so they are not all hot at the same time.


5) Seek to undertand the macro environment, what happens with the dow, key announcements etc and how they affect your stocks.


Good luck with your trading.