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Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

While I agree with the answers shared above---I have my own simplistic view.

Find out how to profit in this business---infact any business.
Understand Reward for Risk and Risk itself as Trade Risk/Portfolio risk/Risk of Ruin.
Understand wether your going to be looking for high % wins and small losses OR
Less Wins and Bigger wins to off set losses.
This will determine to a large extent how you run your business.

Also understand margin and the CORRECT use of margin.
The power of Compounding. Pyramiding and the power of
staying right longer.

Finally learn the Perato Principal the most important and least used
truisms of modern business and LIFE itself.

Master this and you'll master most things in life!
 
Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

Thanks DJG, loll burglar ill have to yet again steal that quote.

Tech, I'm assuming since Ill be more selective with my trades that, that will equate to higher percentage winners but also big winners? I don't know if that is possible but ill be targeting stocks with high R/R ratios. One things for sure Im not going to make the personal mistake of being an impulse trader. Just doesn't work for me. Actually it could work with lower brokerage fees. While I was paper trading I racked up a few thousand dollars worth of fees. I was up around 4/5% - while racking up those fees. But still to much emotional baggage.

That Perato principle is interesting. Nick Radge also said 20% of trades make up for most of your profits.
 
Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

Thanks DJG, loll burglar ill have to yet again steal that quote.

Tech, I'm assuming since Ill be more selective with my trades that, that will equate to higher percentage winners but also big winners? I don't know if that is possible but ill be targeting stocks with high R/R ratios. One things for sure Im not going to make the personal mistake of being an impulse trader. Just doesn't work for me. Actually it could work with lower brokerage fees. While I was paper trading I racked up a few thousand dollars worth of fees. I was up around 4/5% - while racking up those fees. But still to much emotional baggage.

That Perato principle is interesting. Nick Radge also said 20% of trades make up for most of your profits.

You'll find that perceived selection of trades doesn't necessarily equate to a higher % of winners.
Nor to larger winners. logic by yourself and most of the planet has us thinking that way. Somehow we will become skilled enough to get onto 80% of winning Trades and get 80% of the move in our direction.

The truth --- which can only be found through experienced is quite different.

its HOW you trade the TRUTH that will determine profitability.

So your first task is the look at your hypothetical (Ill be super selective and that way have more winners and bigger winners) and find the TRUTH so you can move forward.

Learn about risk reward.
There are 2 calculations---one for position sizing---the one you can manipulate.
and THE BIGGIE
One for closed trades ----- The one you cant manipulate--The One that determines how your going!

If no other accounting knowledge---learn this!
 
Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

That makes sense Tech, thanks. Then I guess I have to find as many 'SELECTIVE' trades as I can in order to increase my chance of stumbling across a potential big winner. I'm going to have to deal with the fact that I'm going to be 'wrong' more times than right.
 
Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

Ok good news. My brokerage account has been finalized. Just have to shift over the funds. Initiall deposit of $7000, then $1000 every fortnightly.

As far as any planned trades, my current consensus is to wait on the sidelines. My chart indicates a break in the current uptrend of the major US equities. Obviously every ones chart is different, hence im just going to wait for some time of confirmation wether its going to continue up or change. At the moment it could swing both ways, so its just to risky.

The stocks I am currently keeping an eye on are presenting oppurtunities for both the long and short side so waiting for the overalll market to give me some indication of direction is ciritical for my personal strategy.

While I wait, im coming up with a detailed trading strategy/systen which I will be backtesting slowly as well as through actual trading.

Im currently reading a book by Mark Douglas - Trading in the Zone. Personally I have put to much pressure on myself to succeed in trading. I think it stems from alot of factors but predominantly the fact that money and "success" make you feel superior to your peers/friends.

Ive always been competitive and wanted to be the "alpha dog". My point is that all this emotional baggage will definitely be putting a strain on my trading and clouding my judgement. While I wait for some clarity on market action, hopefully this book provides me on more insight on how to be calm/collected and neutral in viewing data presented by the market.

It should also be an asset which I could use in the real world. Ive always thought of anger/loss of emotional control as a sign of weakness (obviously there are exceptions).

Anyhow ill keep an update on progress. My number one goal is to come up with a strategy to give me an edge. Easier said than done but I should learn alot because of it. I dont mind if it takes years to find one. As long as I keep improving.
 
Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

7000$ just been deposited in IB account. Now to wait till an oppurtunity arises...
 
Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

So I wanted to short a stock tonight when an error comes up saying my account isn't allowed to. Firstly I need a margin account and secondly its not offered to aussie residents. That's good to know...:banghead:
 
Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

Your also under your trading minimum I think.
$10,000
 
Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

I think the minimum for under 25 years of age is $3000. However im going to add another $1000 this thursday and 500$ onwards every week after.

The last thing I want to do is go against the trend, which could be at a cross roads IMO.
 
Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

So I bouggt twitter last night @ 40.20$. Why? Im not to sure. My brain is abit messed up as my friends been losr in blue mountains for 11 days but I thiught it was a giod R/R
 
Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

ATM the markets arent confiring the reversalyet so I sti think it could see a potentail rise.
 
Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

Sorry for the lack of info. Lots of stuff going on trying to help friend. I will make a proper post as soon as I am focused.
 
Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

So I bouggt twitter last night @ 40.20$. Why? Im not to sure. My brain is abit messed up as my friends been losr in blue mountains for 11 days but I thiught it was a giod R/R

Earlier on you assured the forum that emotion would not be a factor for you.
This is not supportive of that statement!!!!
 
Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

I guess its more a lack of emotion, but I havent had as much time to get a good idea of whats going on due to a lack of time.

Imo the overall balance of supply and demand hasnt shifted or hasnt indicated some sort of ****. Theearnings report pushed some supply out but I believe the situation was exacberated. Its at a good pivot point however 36$ would be better but I hopped on board now at a 2% risk hoping for a jump.

Subconsciously I have looked at that particular chart so many times so I still believe I know what its doing. To whatever degree that is possible in trading.

I cant focus on my friends situatiin as I have done all I can and hence im trying to re focus on my personal tasks.

Am I emotional. I cant really say.
 
Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

The opinion of some traders on this forum have swayed me in the sense that I realise I cant short and im shifting my strategy abit to a more agressive short term trade style on rallies. But as foe twitter im up 3% and im going to let it run. I might move stop to Break even once it hits 46$ and confirms support.
 
Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

Another factor ive been up 3 nights in a row waiting for twtr and fb to report earnings. I got knocked out both times haha. I wanted to break my trading virginity (emotions at its finest). But I still was disciplned enough to admitt it was a setup id have odds in or not.
 
Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

I set a risk of 1$. So I bought 160 shares with a total risk of 160$. At first I was going to set the risk at 50c which since I am undercapitilzed would mean I only risk 1% but I decided to risk a dollar as I wanted to be well under 40$ for two reasons.

Firstly pshycologically we all know round numbers are stronger support lvls ( I think) and previous support lvl was at 39$ with a standard devation of a dollar I guess.

So to minimize me getting stopped out as I was going to go to sleep I set the risk abit bigger to take into consideration price swings but I didnt set it to big to get me burnt.

Ive come to the realisation that my communication skills are horrible and I give the impression that im arrogant etc but im working on it.
 
Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

4 days ago it dropped $8

Do you seriously think the earnings report is going to be a signal for a long play!
This has doom written all over it!
 
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