Australian (ASX) Stock Market Forum

Your "Best" Trading Rule for Beginners

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In addition to those above.

(1) Always trade on the right side of the market.
(2) A trading plan isnt worth the paper its written on if you have no idea if it can be profitable.
(3) Understand Positive Expectancy and how to achieve it.
(4) Understand Fixed Fractional Position Sizing.
(5) Learn how to use the power of Leverage and Compounding.
(6) Everything is YOUR fault.
(7) Dont trade if your undercapitalised.
(8) Successful trading is BORING.
(9) Keep it simple.
(10) Its NOT about being right!
(11) Find a mentor.
(12) It doesnt matter if your wrong only how long you stay wrong!
(13) Let the trade come to you.
 
tech/a said:
In addition to those above.
(11) Find a mentor.
Click to expand...

Hey tech/a

I have always wondered about how you go about finding a mentor? Do you mean a mentor that you actually make communication with, or a public figure mentor and which you follow by reading? I can imagine the benefits of having someone to converse with who has seen it all before and has been successful would be immense.
 
Ok, i like this one, see if you can tell me who said this:

"If you fall out of a four story building, you are not going to be getting up anytime soon.":D

Use it as a idea to how quickly an instrument will recover afte a big move.

Cheers,


CanOz

PS. it may not be exactly quoted.:eek:
 
Trading is a losers' game. He who loses best will win in the end!

Rule 1
In a losing game such as trading, we shall start against the majority and assume we are wrong until proven correct! (We do not assume we are correct until proven wrong.) Positions established must be reduced and removed until or unless the market proves the position correct! (We allow the market to verify correct positions.)

Rule 2
Press your winners correctly without exception.


from Phantom of the Pits.......highly recommend it, it's free on the web just google it. Read it several times before I really grasped his rules - turned my trading around the moment I implemented into my trading rules
 
Tks for all the insights so far. I started this as I found when I first looked into it that this sort of info was in ASF but woven into the posts of hundreds of threads. As a newb, I started to collect this stuff to give me some idea of how to sort my myself (mentally & physically) - I also work better from bullet points as reminders.

I can say that if I had been able to see something like this collected wisdom in one place then I would likely have held off buying stocks at this stage. Or would have exited 2 of my positions before they became "hopeless"!! At least one is green, which gives me hope that I can learn something - my review shows me I did a better selection re sector and indvidual stock.

So again, tks.
Cheers
John
 
Sakk said:
Trading is a losers' game. He who loses best will win in the end!

Rule 1
In a losing game such as trading, we shall start against the majority and assume we are wrong until proven correct! (We do not assume we are correct until proven wrong.)
Click to expand...

Im personally not comfortable with this one, but I think it is more psychological, as some people will understand this risk management from another perspective

"Assume we are wrong until proven correct" - For me this means I can buy today and eventually some time in the future it will go up and be proven correct

No ones right or wrong - just clarifying interpretation
 
johenmo said:
Tks for all the insights so far. I started this as I found when I first looked into it that this sort of info was in ASF but woven into the posts of hundreds of threads. As a newb, I started to collect this stuff to give me some idea of how to sort my myself (mentally & physically) - I also work better from bullet points as reminders.

I can say that if I had been able to see something like this collected wisdom in one place then I would likely have held off buying stocks at this stage. Or would have exited 2 of my positions before they became "hopeless"!! At least one is green, which gives me hope that I can learn something - my review shows me I did a better selection re sector and indvidual stock.

So again, tks.
Cheers
John
Click to expand...

This is very true and is part of the answer to the last quote below.

kennas said:
Next time something goes wrong Tech I will remind myself of this.

It was YOUR fault.

:p: :)
Click to expand...

Thanks mate Ive got big shoulders.

sammy84 said:
Hey tech/a

I have always wondered about how you go about finding a mentor? Do you mean a mentor that you actually make communication with, or a public figure mentor and which you follow by reading? I can imagine the benefits of having someone to converse with who has seen it all before and has been successful would be immense.
Click to expand...


Yes been asked and raised before. I make no secret that Radge is mine and I pay for it. I like the way the guy thinks. I can see exactly how he trades and his thinking on a whole range of stocks/indexes and commodities. He also hands out many free gems on this and his site.
Personally I look for mentors in anything important enough to need one.
Business I have several.
Property several.
Trading Radge and all you guys.

All I did was approach those who I knew/knew what I needed to know and took them to lunch---I was/am up front. I remember a leading Property Developer I rang him and said I'd like to take you to lunch and hear your story for an hr or so. He agreed and told me more than I could have asked for if Id sat and questioned him.

I have a seperate folder that I paste gems into and periodically add or delete from. I'm not suprised that experience has seen me delete many an adage I believed was wise only to find by experience that it was/is a phurfy.

The best way to find answers are to be specific in question. Ive learnt heaps from forums,even from people I dont agree with at times.----or ever!
 
Best advice I can give (not a rule) is test your method extensively and understand the method as an expert.

At the same time understand money management as an expert.

Then let the market come to you.

If a beginner is determined to press on before doing the above (as I did DOH) then always use and take your stoploss its the only thing you can control and it will keep you in the game.................longer
 
skyQuake said:
Always do the opposite to what the financial media says.
Click to expand...


Know what you mean, but I cant entirely agree.

The Fin Review is helpful for new learners re fundamentals, and its expose on ABC Learning, for example, was well ahead of the curve.


My best rules...Move Stop Loss to Break Even (including brokerage costs), asap

Never go against a relentless unbroken trend
 
awg said:
Never go against a relentless unbroken trend
Click to expand...

Yeh, it's also good to note trend structure and strength, if the current pivot low does not intersect the most recent pivot high, the trend is strong. Times like this, quick pyramiding and scaling out can make some serious $$$$$$. This is where the timing of your entry becomes CRTICAL.
 
awg said:
Know what you mean, but I cant entirely agree.

The Fin Review is helpful for new learners re fundamentals, and its expose on ABC Learning, for example, was well ahead of the curve.
Click to expand...

Ahh yes, should clarify; Don't listen to the muppets on financial news channels. AFR is not bad; Thing to note is when it does coverage of a speccie, the market suddenly becomes aware of said speccie and behold! Volatility! For good or bad... Villiage Life, AUM and CAZ (Cazaly resources) come to mind.

Never go against a relentless unbroken trend
Click to expand...
Hhahahahaa, trade a bit on the Hang Seng and you will have this so firmly ingrained into your psyche... you can have a 200tic move with 0 counterticks to get out.:eek:
 
Its a head game! Once the mind is mastered the rest is just going through the motions.
 

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