|Forum - Casual Lounge
||Discuss anything not related to stocks|
|From: safeflower (Rep: 6) reply to rooks||Date: 05/14/2009 17:56|
|Forum: Casual Lounge - Msg #201||Thread #672572812 (Rec: 0) |
Welcome to trading. This is a very interesting time to get into the market because the current market is very different from previous years. Common strategies that used to be dependable no longer function as reliably as before. We are living in a historic time period, marketwise. Buy and hold has become a losing strategy (it might turn around soon, but I am speaking for right now. And that is not just because the market is in a downtrend.It is a fundamental shift into a new market environment, in my opinion). Anyway, you want to make a lot of money. Great! :) My first suggestion is to think a bit about who you are. Can you sleep at night when your money is in a risky but high reward stock? There are a lot of questions you need to ask yourself. Here is a site that gives you a start on the questions from Investopedia.com. I found that it helped me focus by helping me form an outline of my goals and trading needs: http://www.investopedia.com/articles/trading/04/042104.asp Don't worry if you don't know the answers, but I linked that just to give you a jumping point....
FAZ? You were doing leveraged ETFs out of the gate? What, is your broker crazy? Become your own broker and take the bull by the horns yourself. The first thing about the stock market can be summed up in two words: Personal Responsibility. Take ownership of your money, and make it work for you.
I use tdameritrade for my roth and sogotrade for fun (sogotrade's commission is $3. per trade!) sogotrade does not offer IRA accounts yet. I use tdameritrade for their program - strategydesk, which allows one to backtest strategies (although i must say the software sorta sucks).
Learning the terminology is important. It makes a lot more sense when someone says something like "I was long on XXY until it broke support and then I got stopped out" when you know that what they mean.
Anyway, my suggestion to you is that you only risk what you can afford to lose (and by lose, I mean throw away with no second thoughts). Learn from the great traders, but don't depend on them to tell you what to do.
Learn technical indicators and market patterns...
"Due diligence" (or DD) is a term thrown around on here a lot. Most people don't seem to actually do DD, (although they say they do). Make sure you do it for yourself before every trade. I am sure if you started another post on DD, you would get a lot of good advice from people who do use it and know how to pull out the info that separates good investments from speculation and gambling. Remember, the stock market is a probability game. Have fun, most of all!!!
Hope you make a fortune. Oh, one last suggestion... use stops and take profit often ;)
| Reply to rooks - Msg #179 - 04/14/2009 15:38|
Re: Out of my element.
I did not mean in my original post that the information here is useless. There is a boatload of intel here, the problem is I'm not caught up in it enough to understand what a lot of it means (guess I should have stayed in school)
Hopefully I pick up on a few things in here and we'll see how it goes. Thanks again and wish me luck.
Any suggestion on which online broker is best for rookies?
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