StockFetcher Forums · General Discussion · Are you tired of being on the "wrong" side of the trade?<< >>Post Follow-up
TheRumpledOne
6,358 posts
msg #45270
Ignore TheRumpledOne
6/25/2006 6:29:22 PM

Are you tired of being on the "wrong" side of the trade?

If you seem to "always" enter a trade and immediately it goes against you, here's a way to reverse your fortune.

Open a practice account.

Enter the trade in the practice account.

Watch it go against you.

Then see the entry signal you should have waited for and enter in your real money account.

Sooner or later, you will start to wish you had entered the trade in your real account because you will have mastered the entry. Then, you can put the practice account away.

Simple, yet effective.




nikoschopen
2,824 posts
msg #45272
Ignore nikoschopen
6/25/2006 7:14:55 PM

The only problem with this approach is that ure not subjected to the same level of emotional toll using a dummy account as you would with a real account. After all, it's the rising flux of composite emotions that moves the market. If you really want to succeed, one of the first things you should master is to be able to decipher market psychology.


nikoschopen
2,824 posts
msg #45289
Ignore nikoschopen
6/26/2006 3:36:43 PM

"Losing an illusion makes you wiser than finding a truth."
-Ludwig Borne


shelupinin
120 posts
msg #45311
Ignore shelupinin
6/27/2006 1:14:35 AM

I'm sure there is a BIG difference between practice account and real one. In practice account you don't have any emotions, while at real account you have a lot of them... from my poin of view the only way when practice account is usefull is when you trade something which has big diversification in it's nature and secured againts single bad event(missed earnings, court decision etc.)... Currently I'm paper trading ETF's because they are secured against single bad event and I'm shure they can't drop 10% or more in one day...
my 2 cents
Alex


TheRumpledOne
6,358 posts
msg #45321
Ignore TheRumpledOne
6/27/2006 10:08:50 AM

I think you miss my point.

If you have them side by side while trading, you have the same emotion, at least I do.

But if you are finding yourself jumping the gun, this idea works.




scvidar
51 posts
msg #45335
Ignore scvidar
6/27/2006 7:03:04 PM

The one thing I tell newbies is once they have paper traded their "system" for 6 months, then only buy enough shares to cover a round trip trade in commissions. It gives you the thrill if it continues up and if you keep tight enough stops, limits your losses.

I usually limit my losses to 1-2%, but try to let my winners run. I only need a couple of 30% profits and I can have many 1-2% losers. It also enforces discipline. I usually am in a trade no more than a week.

As to my system, all I can say is TRO and others have many excellant ideas, and I look at the graphs and the indicators to see how I may modify them for my type entries. I have my own systems, but am always open to others ideas.


nikoschopen
2,824 posts
msg #45337
Ignore nikoschopen
6/27/2006 8:09:31 PM

"But if you are finding yourself jumping the gun..."
_____________________

One of the more prominent reasons why ure always jumping the gun is the fear of missing the bandwagon. By the same token, ure too damn greedy to give up on what you see as potentially easy money. It's this very mixture of fear and greed that influences the decision making process of countless market participants on a daily basis. While some people call this discretion, I simply call it emotion.


StockFetcher Forums · General Discussion · Are you tired of being on the "wrong" side of the trade?<< >>Post Follow-up

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