@tech/a what instruments do you generally trade?
For I'm a mix of approx 20% forex, 60% stocks and 20% indices.
Learning to trade
- Thread starter DaveTrade
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For I'm a mix of approx 20% forex, 60% stocks and 20% indices.
tech/a
No Ordinary Duck
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Stock short term
Stock longterm
DAX short term
Stock longterm
DAX short term
Thanks. What's long and short term for you?
For me, I'm mostly a swing trader lasting anywhere from 2 days to 2 weeks. Longer term for me is around 1 to 3 months.
Are you generally a volume price analysis trader?
tech/a
No Ordinary Duck
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DAXcan be minutes to an hour or more but could be 3 trades in 2 hrs
Stock short term from a day to however long it takes to stop not normally more than a week
Self managed Super some months some years
Trading a mixture
Systems trader for longer term
Method trader for shorter term similar to you
In some ways
Only a small amount of my days/ week involve trading
Stock short term from a day to however long it takes to stop not normally more than a week
Self managed Super some months some years
Trading a mixture
Systems trader for longer term
Method trader for shorter term similar to you
In some ways
Only a small amount of my days/ week involve trading
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@trender thanks for you postings. For the benefit of all that have been finding your way of trading very interesting, I'm posting another video below with related information.
https://youtu.be/WaTuu-KQbaU?si=WAms48KrqQvtrRAw
Thanks for sharing. I do look at futures as well. Tbh the vast majority of my trades are in stocks and indices where volume is centralized. With currency I rely more on market structure and multiple time frames.
I'm pretty paranoid with trading and stock markets in general. I have no idea if in 1, 3, 5 years I'll still have the edge so when I accumulate chunks of profits I reinvest into other asset classes and business. The combo works well for me.
My biggest insights into trading over the years is you never know when the gig could be up. Edges could fade or stop working, your psychology could take a detrimental hit, health, family etc. I wouldn't ever want to rely solely on trading to generate income or expand wealth. Hence my reinvesting into real estate and small businesses.
If trading still has utility for me then I'll continue. When I sense the gig is up, I'll exit.
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The wisdom that comes with age, or should I say, as we get older we see a greater need to manage our risk in life because we know that we are running out of the time needed to rebuild if we suffer a big setback and the psychological cost if we let that happen.
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John Howell sent out an email and I got one because I like to listen to his market updates. His message was so well written that I felt that I should copy it and post it in this thread, I really feel that this could help a lot of people.
The following is John's words;
The Realities of Trading: Lessons from 20 Years in the Market
After two decades in the trading world, I’ve learned a fundamental truth that every aspiring trader needs to grasp: there is no such thing as get-rich-quick or easy trading. While the allure of fast profits can be tempting, the reality is that successful trading requires hard work, discipline, and resilience.
The Illusion of Easy Profits
Many newcomers enter the market with dreams of quick wealth, spurred on by stories of overnight successes. These narratives, often glorified in media and social networks, create a false expectation that trading is a straightforward path to riches. However, the harsh truth is that trading is far from easy.
The reality is that the vast majority of traders will face significant challenges, setbacks, and losses along their journey. The market is complex, influenced by countless variables, and understanding these intricacies takes time and effort. Expecting to master trading without putting in the necessary work is a recipe for disappointment.
Embracing the Struggle
The journey through trading can be arduous. Many traders experience what I call the “trading crucible”—a period filled with mistakes, losses, and steep learning curves. It's during this phase that many traders give up, believing that they lack the aptitude or that the market is rigged against them.
However, if you can persevere through these tough times, you emerge on the other side with invaluable insights. You start to recognize patterns, understand market psychology, and develop a strategy that suits your style. You learn what works for you and, equally important, what doesn’t.
The Learning Curve
The key to success in trading lies in embracing the learning curve. Each mistake is a lesson, each loss a stepping stone to improvement. Over time, you begin to refine your approach, identifying the strategies that yield positive results and those that lead to unnecessary losses.
What to Focus On
As you progress, you’ll find that your focus shifts. Rather than chasing quick profits, you start prioritizing:
1.Risk Management: Protecting your capital becomes paramount. Understanding how much to risk on each trade helps you survive the inevitable downturns.
2. Strategy Development: Crafting a trading strategy based on thorough analysis, backtesting, and continuous refinement will give you a structured approach to the market.
3. Emotional Discipline: Recognizing and controlling your emotions is crucial. The market can evoke fear and greed, and learning to navigate these feelings is a vital skill.
4. Continuous Learning: The markets are ever-evolving, and staying informed about economic news, trends, and new strategies is essential for long-term success.
What NOT to Do
Just as important as knowing what to focus on is understanding what to avoid:
1.Chasing Losses: It’s tempting to try to recover losses quickly, but this often leads to more significant losses. Stick to your strategy and let your analysis guide your decisions.
2. Overtrading: Trading too frequently can erode your capital and increase emotional strain. Quality over quantity is the mantra to adopt.
3. Ignoring Market Conditions: Each market phase has its characteristics. Failing to adapt your strategy to changing conditions can lead to missed opportunities or unnecessary losses.
4.Neglecting Mental Health: Trading can be stressful. Taking breaks and maintaining a balanced life outside the markets is vital for sustaining long-term performance.
Conclusion: The Path to Ease
While trading is undeniably challenging, the hard-earned knowledge gained through experience can eventually make it feel easier. After enduring the trials and tribulations that most traders face, you reach a level of understanding that allows you to navigate the markets with greater confidence and clarity.
So, embrace the struggle. The road may be tough, but on the other side, you’ll find that what once seemed insurmountable becomes manageable. With the right mindset and dedication, trading can transform from a daunting challenge into a rewarding endeavor. Remember: there’s no shortcut to success, but there is a path, and it leads to mastery.
Hope it helps
John Howell
The following is John's words;
The Realities of Trading: Lessons from 20 Years in the Market
After two decades in the trading world, I’ve learned a fundamental truth that every aspiring trader needs to grasp: there is no such thing as get-rich-quick or easy trading. While the allure of fast profits can be tempting, the reality is that successful trading requires hard work, discipline, and resilience.
The Illusion of Easy Profits
Many newcomers enter the market with dreams of quick wealth, spurred on by stories of overnight successes. These narratives, often glorified in media and social networks, create a false expectation that trading is a straightforward path to riches. However, the harsh truth is that trading is far from easy.
The reality is that the vast majority of traders will face significant challenges, setbacks, and losses along their journey. The market is complex, influenced by countless variables, and understanding these intricacies takes time and effort. Expecting to master trading without putting in the necessary work is a recipe for disappointment.
Embracing the Struggle
The journey through trading can be arduous. Many traders experience what I call the “trading crucible”—a period filled with mistakes, losses, and steep learning curves. It's during this phase that many traders give up, believing that they lack the aptitude or that the market is rigged against them.
However, if you can persevere through these tough times, you emerge on the other side with invaluable insights. You start to recognize patterns, understand market psychology, and develop a strategy that suits your style. You learn what works for you and, equally important, what doesn’t.
The Learning Curve
The key to success in trading lies in embracing the learning curve. Each mistake is a lesson, each loss a stepping stone to improvement. Over time, you begin to refine your approach, identifying the strategies that yield positive results and those that lead to unnecessary losses.
What to Focus On
As you progress, you’ll find that your focus shifts. Rather than chasing quick profits, you start prioritizing:
1.Risk Management: Protecting your capital becomes paramount. Understanding how much to risk on each trade helps you survive the inevitable downturns.
2. Strategy Development: Crafting a trading strategy based on thorough analysis, backtesting, and continuous refinement will give you a structured approach to the market.
3. Emotional Discipline: Recognizing and controlling your emotions is crucial. The market can evoke fear and greed, and learning to navigate these feelings is a vital skill.
4. Continuous Learning: The markets are ever-evolving, and staying informed about economic news, trends, and new strategies is essential for long-term success.
What NOT to Do
Just as important as knowing what to focus on is understanding what to avoid:
1.Chasing Losses: It’s tempting to try to recover losses quickly, but this often leads to more significant losses. Stick to your strategy and let your analysis guide your decisions.
2. Overtrading: Trading too frequently can erode your capital and increase emotional strain. Quality over quantity is the mantra to adopt.
3. Ignoring Market Conditions: Each market phase has its characteristics. Failing to adapt your strategy to changing conditions can lead to missed opportunities or unnecessary losses.
4.Neglecting Mental Health: Trading can be stressful. Taking breaks and maintaining a balanced life outside the markets is vital for sustaining long-term performance.
Conclusion: The Path to Ease
While trading is undeniably challenging, the hard-earned knowledge gained through experience can eventually make it feel easier. After enduring the trials and tribulations that most traders face, you reach a level of understanding that allows you to navigate the markets with greater confidence and clarity.
So, embrace the struggle. The road may be tough, but on the other side, you’ll find that what once seemed insurmountable becomes manageable. With the right mindset and dedication, trading can transform from a daunting challenge into a rewarding endeavor. Remember: there’s no shortcut to success, but there is a path, and it leads to mastery.
Hope it helps
John Howell
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@DaveTrade This article is worth copying and be read every Sunday night until it is ingrained into the grey matter.
It makes so much sense.
Well, to me anyway.
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