[AmCan1]

One thing to be careful of is to not fall prey to the promise of easy profits in the markets. There are many seductive adds out there and many seek to alleviate the responsibility that one really must take for their own success. They promise everything, short of the holy grail itself, and if a beginning trader throws their money at such dreams, then many will make the next big mistake, which is to blame their failure on the magic system that they just invested in. A very beginning tip to succeeding as a trader is to be committed to taking responsibility for ALL your trade decisions. Decide to learn how to trade vs. to be told what to trade, for example. Every trade decision (or lack there of) comes with a consequence. You should know what that consequence could be, worse case, before making any decisions.

[TDEMT]

For the new emini traders......... I just started up a website that should assist you in preparing for, or re-directing your trading journey.


(Moderator: Promotional URL removed)

My best point of advice for a new trader is to STOP TRADING NOW if you are losing money. Your performance will not magically turn around. Wishing and "should have would have could have" does not have any place for insertion into your trading plan.

My second piece of advice: If you do not have a written trading strategy then, again, STOP TRADING NOW! Conduct your own research and get a plan generated. Regardless if it takes you 6 months to do it, just get it done. Or, you can keep trading and lose all of your money.

Thanks.....

[wwalker126]

Hi Vik,

If you haven't realized now, let me be the first to tell you. You do not have to be the smartest person to be a successful trader. You say you've studied a lot about day trading. And I say good for you. You've taken one of the first steps. I am a firm believer that the best way to learn is through experience. So, now that's you've taken the first steps, you still have 95% more to learn. If you have the capital, slowly dive right in, only after assuming you have a well planned trading strategy. I'll be the first to say it, expect to take losses in the beginning. Be sure to make them small losses with huge lessons learned. Option 2 would be to start a virtual trading account with play money. Practice Practice Practice.

*Good luck on you next trade*

[MadMarketScientist]

In reviewing this thread I see a lot of great pearls of trading wisdom. Sometimes people look at the date of a thread and think "it's old, that doesn't apply" but much of what is discussed here is very universal.

What I'm most curious about is if the original poster, now a year later is still involved in trading? With such a high attrition rate, there was some great initial advice here but there's definitely curiosity on my part so if you're out there - let us know

Regardless, the thread is worth of a review for Beginner traders for certain.

MMS

[Rainmaker626]

As a beginner myself, I think the best advice I can give to you is to HAVE A SECONDARY SOURCE OF INCOME and USE MONEY THAT YOU CAN AFFORD TO LOSE...

sorry for the caps, but I really wanted to stress those things to you... I dont think I need to elaborate on it, but I will.. When you are relaxed and dont need potential trading profits in order to survive, you will be more lucid and calm in your approach to trading and thus reducing mistakes, reducing what I call the "gambling factor". Putting too much of your account at risk or making highly risky (i.e great potential reward) trades.. Also with using money you can afford to lose, you wont freeze up and get mentally devastated after a few losses..

Secondary to that is before you get any nifty charts, or pay for anything, get your feet wet trading using REAL money.. albeit a small amount and get a feel for the price action, real-time, real money trading situations... And it's then and only then, should you know what you NEED or may have to pay for as a tool for your trading business...

Write down and keep meticulous records of everything you do.. Including things like why you entered a trade and how you felt after you entered or how you felt while you were in the trade and the trade was either successful or not...

Trading is a gradual process where experience, mental state, character under pressure and knowledge mix to make you a successful trader..

You MUST BELIEVE that you will be successful at this.. Otherwise, do not even attempt it.. DO YOUR BEST to steer clear of people that tell you that "majority of other traders fail and thus you may fail as well" That kind of thinking will already put you at a disadvantage that will subconsciously have you believing that you too, wont be successful at this..


Please, make sure you know all these things BEFORE you pay for anything or invest any substantial amount of money into trading...

Of course, I feel the need to say it so people wont get confused... That goes along with all the other things that you would naturally do.. i.e. reading books, attending seminars, getting a mentor.. etc.. etc..

Just offering my 2 cents.. Take it with a grain of salt as I'm also a beginner and havent made any substantial amount of money trading...

[MadMarketScientist]

Great post Rainmaker - well done.

I think you sum up really several of the most important points that any beginner trader should really take to heart.

I won't reiterate what you've written because I completely agree. Even though most will struggle to follow the advice because some of it goes against human nature -- but you must battle those urges not to follow it.

One thing I find important is to understand that though there are clearly books, courses, software, strategy, etc... that might overstate their value, there is a place for education, there is a place for purchasing products -- sometimes I have found that what I've purchased maybe didn't live up to my expectations (which sometimes were unrealistic anyway) but it does something that gets you thinking and getting creative and many times inspires an idea that proves valuable. Just realize you shouldn't go overboard since like you mentioned, gotta protect that capital to last long enough to make it.

MMS