Trading advice... I know a couple of people who follow tips from...

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    Trading advice...

    I know a couple of people who follow tips from acquaintances. That's the lazy approach and the results are hit or miss. Trading a tip adds more complexity to the task.... when the price moves (up or down) because these people haven't done the work they don't know what to do (i.e. take a profit?, add more?, cut the trade to minimise the loss?, double down?).

    Finding a good candidate is only the first task... managing the money is the more important bit. That means position sizing according to your capacity to tolerate the volatile price swings, having a predetermined plan if it reaches a profit target and knowing what your pain point is if it goes badly.

    If you can not be a master of your emotions it's going to be expensive.

    The market is a place which rewards diligence and judgement... good players are lucky. People who rely on luck go broke.

    The ASX runs a trading game twice a year. $50k play money, 3 months long, ASX200 companies, real time exposure... as close to the real thing as is possible. It's a place to try ideas, learn about companies and make painless mistakes. (I have played it for several years, used it to try different strategies and continue to do so. It took me about 10 years before I found a way to reliably handle the money playing in the game.... but it transferred to the real thing. Money management is the key skill which allows risk taking)

    Listen to everyone especially those who disagree with your own opinions.... but be firm in your own opinions. Most people with extreme opinions are usually emotionally invested... be swayed by reason not reasons.

    There are good ideas and bad ideas.... it's impossible to know in advance which is which.

    Lastly, if you are not enjoying it.... it's probably not for you.
 
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