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Newbie that is currently trading

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Nh55

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Hey guys,

I currently hold shares in different companies. I sold and made a loss not long ago, I'm in profit with some companies, loss with others. I have come to realize I don't know enough. I don't regret losing money, just makes me just want to learn more quicker.

Just a few questions.

Could someone link me or explain to me why market capital is important and what it means? how to evaluate it before buying into a company.

Any good links on different chart patterns and meanings? for example.. I've seen the term cup and handle, want to get more in-depth knowledge onto how to read and assess charts properly.

Anything else I should be looking into for basic knowledge for the market?

Cheers.
 
Hey NH. I think market capital refers to how big the company is total $ wise. The more it is the bigger the company is. I think you calculate it through total balance sheet worth. Not sure or maybe total worth of shares. To your qs on identifying chart patterns
etc you can start by reading books. That and it takes alot of experience and even then nuthings promised haha. Thats my noobie advice. GL
 
oh yea and market capital is important for alot of reasons. Some exchanges have certain cap size limits, i guess sm. all cap companies have bigger potential and risk and bigger market cap companies (should) be safer. Well thats what i think haha
 
Nh55 said:
... why market capital is important and what it means? how to evaluate it before buying into a company ...
Click to expand...
I like Investopedia.
Although it is American, I find it is neither opinion nor BS.

http://www.investopedia.com/terms/m/marketcapitalization.asp

On its own, Market cap is a very small part of the puzzle with which to measure a company.
You will come across many more, but it is a good place to start.
 
Could you please list in dot points other factors so I know what to research.
 
Nh55 said:
.... just want to learn more quicker.

Just a few questions.
Click to expand...

how about you tell us what it is you want to learn, rather, what are the current, real, tangible hurdles you face.....that means, create questions rather than getting spoon-fed stuff....when you think of the questions you're asking from a how does-that-work what's-making-price-move-like who's-making-price-move-like-that point of view....

the difference between you asking/enquiring "more quicker" versus being handed a bowl of knowledge soup "more quicker" is a whole different ball game....learning to think thru the trade process by actually thinking thru each step and asking each step of the way gives you options.....a bowl of soup is the process of learning and un-learning and wastes a lot of time because it's someone else bowl not yours....

..... ideas
 
burglar said:
Joewels, You said a mouthful, ...
Musta been alphabet soup 'cos you looking pretty smart! :
Click to expand...

i used to chat with the london trader, smartest guy.......he would constantly ask me the next step question like "so what makes this occur?" and " when were you thinking this might happen"

i spent a lot of time replying "err.....erm......well....what i saw is...."

and he'd say, " youre almost there..." and rather than just handing me an answer he'd ask another question till i got an a-ha.....and then he'd say "so, what is likely to happen now?" and i'd have to discover what the next question to be answered is....and answer it myself

even tho he had a plethora of advice, he wouldnt give anything away unless i could articulate that i understood what was in front of me......it's vastly different to painting by numbers....
 
Joules MM1 said:


i see, by the spelling, you've long ago eaten some of yours, eh
Click to expand...

I was trying to say it in the nicest possible way.
Not enough emoticons here!

Let me retrace.
Nice to have a book title if you are searching for a book.
Nice to have a big brother if you want to learn trading.

Give the newbie a break!
 
burglar said:
Give the newbie a break!
Click to expand...

lol .....my first index trades i'd say that outloud......guess what the other guy on the other side of trade said?

nothing, he/she/it just took my dosh ......

there's nothing nice about donating dosh to someone elses account.......haha

i enjoy receiving it tho
 
Joules MM1 said:
how about you tell us what it is you want to learn, rather, what are the current, real, tangible hurdles you face.
Click to expand...

Every now and then I've seen a SP that are going from 0.001 - 0.005 go up massively in one day, obviously because any movement at a increase of a price usually means 25%+. I'm under the assumption that a company announcement will have movement but I'm wondering if high volumes of trade itself can cause a price increase.

Just one of the things I've noticed.

Cheers.
 
Joules MM1 said:
... it's vastly different to painting by numbers....
Click to expand...

Agree with you, I do!

But he didn't actually ask which stock should he buy,
(like many Uni-student-wannabe-stockbrokers do)!
I actually thought it was a fair question!!
 

Its nice to fantasize about winning a motza on a penny-dreadful!

But please start with something safer, until you learn the ropes!
 
burglar said:
Agree with you, I do!

But he didn't actually ask which stock should he buy,
(like many Uni-student-wannabe-stockbrokers do)!
I actually thought it was a fair qwestion!!
Click to expand...

it's a fair question when the question is concise, specifically framed to a specific step.....how a trader then creates a technique to give themself an option is the key....simply reading books and going to tutorials is just not good enough.....those things cannot give constructive experience.....but a tutor who can sit beside the trader and force the process of thought, that's different.....

any tutorial and book, is much like teaching someone to sum up a linear event and take actions on it.....much like most people do every day in most walks of life, but, in most walks of life there isnt a sentient account taking away your money.....they are not restricted by a books frame work or a tutorial guideline......

trading is closer to rugby, a shoulder fake ....

here's an example, trading a ladder, long, volume on the bid disappears, sell? no, not necessarily......what else is occuring, what time of day, who else is setting up their game?,...... lack of volume doesnt indicate anything other than lack-of-volume....learning context and relative size/action wont come from a book.....

and the game, the nuances are different for each player

 

and high vols cause the inverse, too.....

i think you may benefit from doing some basic study on what an auction actually is....what drives people too an auction......

 
Thank you all for you're responses if I have any more question's I'll post them up here.

Cheers.
 
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