Australian (ASX) Stock Market Forum

Dump it Here

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Add to the plan
First off started to research alternatives ways to invest. The more you read, the more you will become interested in trading, & we have all made dumb mistakes when starting out, that is just being a beginner.

To be a successful trader
The most basic thing you need to be a successful trader is an edge, an advantage in your trading that produces a positive profits over the long-term. Trading is a marathon not a sprint. This edge is the culmination of all your research, planning, execution, and state of mind while managing your portfolio.

Skate
 
You get to hear this one more time
Every book, every podcast, will repeat what the 'edge' is. In its most basic form the edge comes from winning more when you win than what you lose when you lose.

It really works
What is most important is the old adage “cut your losses short and let your winners run”, is one rule obeyed by all the great traders I’ve researched. When you do that you tend to incur many more little losses, but since your gains are essentially unbounded, they usually make up for your losses and drive a profit.

Skate.
 
Listen up, I want you to fully understand
When you’re dealing with your own money, trading gets very complicated, very quickly!

Fish
If you think you have a handle on your emotions, think again, trading is another kettle of fish altogether.

Skate.
 
Lets get it out there "98% of Traders Lose"

It's a shock
One of the first major shocks you'll learn is that 98% of Traders lose their money and some traders lose their entire capital, blowing up their account, than they go looking for someone to blame. (what they haven't got a mirror ?)

Skate.
 
We've got it made
Technology now makes it possible for anyone who is willing to put forth the effort to be a trader. In the past, the average trader had no choice but to rely on brokers, financial advisors, & the media for insight into and advice about the investing process. That is no longer the case. We now have dedicated TV channels to cover all your needs (TV - Your Money)

Skate.
 
What is a trading plan?
A trading plan can be as simple as this: (a) When getting out of bed in the morning, if you place your right foot on the ground first you’ll place a buy order but if your left foot hits the ground first you won’t trade at all. (b) When I wake up and if it’s sunny, I’ll trade but if it’s overcast I won’t.

That’s a trading plan, not a plan I would recommended but it’s still a plan.

What do buy & when do I to sell ?
Your trading plan should incorporate a buy and sell condition & you get decide those conditions. If a buy condition is met execute a buy if your remaining capital permits, if you get a sell, sell the position without hesitation.

How many positions do I buy ?
Your plan should contain your position sizing, by that I mean how many positions can you buy with the money you have. Most settle for 5, 10, 15, or 20 positions. The quantity of positions is not a concern, as far as I'm concerned the more the better. Take more positions with a lower dollar value for each position is much better (IMHO)

Skate.
 
Why you must test and evaluate your Trading Plan.
We all have opinions and that’s the reason why we have a market, all traders have hunches and opinions and most likely their opinion will be different to yours.

We are all different
How investors value companies can be like chalk and cheese and the likelihood of every one coming up with the same valuation would be very rare indeed.

Some stocks are better to buy than others
If a company’s value increases it makes it a better to buy than another stock that doesn’t, the value you place on a company is very judgmental and whether you consider a company to be undervalued, or overvalued may be the very reason you buy one and sell the other.

Skate
 
It's either doom & gloom or its going gangbusters
Stories circulated by the media and major player within the industry are either doom or gloom, or the markets are going gangbusters. There is never a dull moment in the markets. When there isn't a story they make one up & sensationalize it to the max

What about the dangers
Can you ever recall any media outlets, brokers, institutional money managers ever tell you the dangers associated with investing ? - I can’t.

Humdrum story
Can you ever recall a humdrum story about the markets ? - I can't. (the markets are always exciting)

Don't trust them
The media and advertisers only 'spruik' what’s in their best interest and not yours. Investing is a zero sum game and it’s well worth remembering – for every winner there is a corresponding loser, & that loser could be you.

Skate.
 
Today is coming to an end (I need a break, well my fingers do)
In the next few days I want to talk about Soldiers, Sumo Wrestlers, Cars & a few more topic all related to trading, like a talking about out market as a little Chihuahua.

Topics to cover.
How to stay fully invested
Decide how much to allocate to trading (trading capital)
Which market to trade
What index to trade with
When to be in the market & when to stay out of the markets
How to decide what filters to use when making a decision (Filters are like fine tuning a decision)
What price range will we trade
We need to establish companies that have good turnover (how do we do it ?)
It's the same with volume ( buying is easy, getting someone to buy back off you is the hard bit)
We need to understand momentum, momentum shift the share price & what should we do when it stops
We have to establish what a buy condition should be
We need to know when to hold them & we know when to fold them (Kenny Rodgers)
We need a system to rank the order in which to buy, so we buy the positions first
We need to understand position sizing

So there is lots to post about & discuss.

Skate.
 
Skate said:
Happiness (we are all feeling it)
Another brilliant trading day, that has topped off a brilliant month
Click to expand...

Well done Skate, great to hear :)

It looks like you'll be talking soon about using an index filter to stay out of the market or reduce your exposure during downtrends. No better example than the last few months.

Hopefully catchya in a couple of weeks if all goes well :xyxthumbs
 
Year 2 of investing. Going to focus a lot more on just risk minimising by setting trailing stops and not assuming that all my stocks will go up. Need to prune fast and hard to let the rest grow.

Going to put more research into fewer stocks rather than thinking lots of diversity will make up for poor entry and exit timing.

Also **** crypto, leaving that behind in 2018.
 
Darc Knight said:
Are you unhappy Satan? You didn't offer to meet your nemesis Tisme over a Beer did you? Hope you cheer up :)
Click to expand...
So far from the truth DK, I extended my hand, including contacting Tisme to discuss our differences (we are both humans) via the the old communication method, the phone, provided my phone number, but unfortunately, he made the choice not to call, so I never had the chance to learn about him.

As for a beer, would have loved the opportunity.

One never knows another person until they can be in the presence of their spirit/aurora.

As for your comment about happiness, I am and will be always happy with my past, current and future life, as I only have one to live and that is always going to be to short for me, as I will never have enough time to keep on learning.
 
Skate said:
Why you must test and evaluate your Trading Plan.
We all have opinions and that’s the reason why we have a market, all traders have hunches and opinions and most likely their opinion will be different to yours.

We are all different
How investors value companies can be like chalk and cheese and the likelihood of every one coming up with the same valuation would be very rare indeed.

Some stocks are better to buy than others
If a company’s value increases it makes it a better to buy than another stock that doesn’t, the value you place on a company is very judgmental and whether you consider a company to be undervalued, or overvalued may be the very reason you buy one and sell the other.

Skate
Click to expand...


'Everyone has a plan until they get punched in the face'.

Mike Tyson.


You can have a plan - 'A'. It is a good plan, it could even be a great plan.

All irrelevant.

It is the discipline brought by the individual that is important.

jog on
duc
 
ducati916 said:
'Everyone has a plan until they get punched in the face'.

Mike Tyson.


You can have a plan - 'A'. It is a good plan, it could even be a great plan.

All irrelevant.

It is the discipline brought by the individual that is important.

jog on
duc
Click to expand...

ducati916, you are 100% correct, as a trader we need discipline, commitment & confidence in your trading plan or strategy to keep pulling the trigger.

Skate.
 
Trading (Trading is a risky, you need confidence)
Trading is a ‘risky’ business and if you decide to invest you need to understand both risk and reward. To the average investor the rewards are low but the risk of failure is very high. Unfortunately, it seems that people are more familiar with the expected returns of an investment, and less aware of the risks required to generate those returns. The best way to secure your financial future is to work hard, save, invest and make money work for you.

Skate.
 
Getting Started
I believe every trader can greatly improve their experience in the market with the correct software, education and understanding of money management. These days there are some excellent resources available to assist traders to generate an income and improve their skills from home.

Skate.
 

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