Trading Platform

Originally posted by sharks37 ↑

Hi all, I couldn't re-emphasise Jako's comments enough.

@Final2 my suggestion is to make the commitment to not trade for a period of time while you read all you can and study the ins and outs of trading before ever risking any $$$'s on a trade. There is an awful lot to learn and unfortunately we all enter this arena feeling empowered with all the modern trading tools including charting packages and gee-wiz indicators the brokers give us (for a reason that suits them...) and it ends up costing us money because we think we know what we're doing but we don't. If I had my time over again I wish I would have started first just reading/learning and then paper trading before risking $$$'s.

Instead like many others I lost lots of $$$'s getting an education in trading (although some never really learn). The best free tool available these days imo is the demo account which many brokers provide for free. I know a lot of people shirk demo accounts because "its not like the real thing" because psychologically if money isn't on the line then it doesn't feel real. Well sadly for them had they accepted them for what they are - an invaluable risk-free learning environment - they would be far better off. But if the professionals do it (i.e. trading firms having systems which mandate that their traders validate trading methodologies using demo accounts) then why would it not be a good idea for us.

Sadly also there is too much focus in TA on trade setups for entries, but imo most money is made not by finding the mythical perfect entry but in the trade and risk management that follows which determine where you exit. Without trade management you can do well for a while making profitable trades but it only takes that one loser that you don't want to exit because it hurts a little now, that ends up hurting a lot more later and in fact often wiping out all the good wins that you've made.

Good luck with your journey, and make the most of excellent and selfless traders like Jako who are willing to spend their time sharing what they know.

Cheers, Sharks

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Thanks for that @sharks37

Your last paragraph about managing the trade and risk management rang a bell with me.

I remember reading a report (many years back) by a trader who - to prove a point about trade management - took blind entries (long or short) by flipping a coin, and then once opened, he went about managing the trade as well as he was able.
If I remember correctly he was able to turn a small profit this way over many many trades (maybe 50 trades or more trades, or something like that).

I can't remember what instrument he was trading, I sort of think it was currency futures, maybe the cable, or the Euro.

Anyway.....it did however, clearly illustrate how important good trade management is.
Effectively he was cutting trades very quickly when they were obviously wrong, and allowing winners enough room to move for potential profit.
And he also moved his stop up enough to cover his brokerage fairly quickly, so as to be in a break even position to reduce risk.

If I get some time, I'll see if I can find it over the weekend.

cheers