Posts
1. Don't use real money.
You are competing head to head with firms like Goldman Sachs and their "highly-profitable automated trades."
That's my list anyway.
June 3, 2011
10 rules for rookie traders
If you're impulsive or high-strung, day trading is not for you. But if you can think fast and stay cool, it may be worth a try. Here's what you must know to start.
You might also consider becoming a rookie mixed martial arts fighter. It may be worth a try. What's the worst that could happen?
Real Estate Newsletter Articles this Week: Existing-Home Sales Increased to
4.15 million SAAR in November
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At the Calculated Risk Real Estate Newsletter this week:
[image: Existing Home Sales]*Click on graph for larger image.*
• NAR: Existing-Home Sales Increase...
11 hours ago
5 comments:
If you're impulsive or high-strung, day trading is not for you. But if you can think fast and stay cool, it may be worth a try. Here's what you must know to start.
If I could consistently lose money by simply being impulsive and high-strung then I could actually make money. I'd simply click on sell when I wished to buy and click on buy when I wished to sell. Genius!
Sadly, that's not how casinos work. I can lose just as much money thinking fast and staying cool at the roulette table as I can being impulsive and high-strung. The house has the advantage no matter how I bet.
Mark - you are too logical. For the good of the markets, you must be eliminated.
We need more greater fools....
MaxedOutMama,
We once required greater fools OR in greater numbers. We now need both?
I think you are right about my need to be eliminated. If everyone was as concerned as I am about the future this economy would implode (again). Day trading? Casinos? Strip malls? Restaurants? Movie theaters? I find them optional (and generally speaking, I opt out).
This is my second year trying "active trading" so I am still a rookie. My record so far this year is 27-17 for a 7.37% return on principal. That's a lot of work for a little bit of profit. I did a little better my first year with fewer trades. Diminishing returns?
While I may not make much as a trader, I actually feel like I have less risk than in a buy and hold mutual fund because most of time it is sitting in cash. I use about 25% of my retirement funds this way. Rookies have to learn the hard way.
Mr Slippery,
My record so far this year is 27-17 for a 7.37% return on principal.
Not bad. Your trading counterpart out there somewhere was the patsy it seems.
Based on how you worded it, I'd say you are a week/month trader rookie though (and not a day trader rookie for which this post is intended). I guess that makes me a decade trader. I won't buy any investment if I don't think I can comfortably hold it at least that long. That's not to say I always hold that long but that's my intent at the time of purchase.
As I see it, every time I trade I'm just giving the Goldman Sachs of the world (and my broker through trading fees) an oppurtunity to capture some of my nest egg.
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