Stock trading for complete beginners

Malthusian

bulltraderpt wrote: »

Firstly if you genuinely mean it regarding the results then thank you. However, all of the knowledge anyone needs is already out there.

Has been for years but it doesn't stop new books selling - because there's one born every minute. A quick search on Amazon for books on "trading" in the Professional Finance category suggests 500 were newly published in the last 3 months. All you need is good sales patter and a compelling story. The latter you've got and the former is not that hard.

Write up the shares you invested in and what attracted you to them. If you can't remember, make it up. Include lots of historical share graphs with pointy bits circled in red just before you bought in or sold out, to show where your winning strategy identified the Bulltraderpt Inflection Point (or similar invented jargon). Pad it out with a complete novice's, GCSE-level guide to securities and the stockmarket to open the book, and lots of motivational BS, folksy anecdotes and pull quotes from famous historical figures about the need to seize your dreams and live the day. Job done.

EdGasket

Thanks but you just put me off reading those day-trader books.

More seriously, I think it is much easier to make money with a slightly longer timeframe (several weeks to a year); the costs are less, potential profit on each trade more, and a lot less stress as you don't need to risk so much capital for a few pips like you do with day trading.

I've seen a lot of day traders come and go on iii's UKX (FTSE) discussion forum. Most admitted making losses when asked; a few claimed to have found the holy grail but if true then for how long will it last?

bulltraderpt

EdGasket wrote: »

Article 'Why most traders lose money...":

https://vantagepointtrading.com/archives/7665

The comments at the end are worth reading too. A salutary note from one of them:

"Nearly 2 decades under my belt and just blown up. So many lessons learned but after a certain time the mental fight slips, this game requires ur best not ur 2nd best, no less than constant excellence to win in the long term."

That's an excellent article, but I feel the whole post by the guy who blow his account is of relevance, it is listed below:

fab says:
April 30, 2015 at 11:57

"Nearly 2 decades under my belt and just blown up. So many lessons learned but after a certain time the mental fight slips, this game requires ur best not ur 2nd best, no less than constant excellence to win in the long term. As i try to find the energy to rebuild i bid the new folks good luck, and if i may give one bit of advice to u. Once u have a good strategy that without doubt works for you, then focus all of ur attention on ur personal mental state that u bring to the market each day (nothing is more important). Neglect this and the market will sniff u out and take u down.

I can directly attribute my greatest wins and losses directly to the mental state i was in during those times. Having just blown an account i know my state was tired, burned out, stubborn minded etc.. This is not the state that creates champions by any means, but i allowed it to be the case during this period and paid the hefty price. So take these words to heart on ur journey."

bulltraderpt

Malthusian wrote: »

Has been for years but it doesn't stop new books selling - because there's one born every minute. A quick search on Amazon for books on "trading" in the Professional Finance category suggests 500 were newly published in the last 3 months. All you need is good sales patter and a compelling story. The latter you've got and the former is not that hard.

Write up the shares you invested in and what attracted you to them. If you can't remember, make it up. Include lots of historical share graphs with pointy bits circled in red just before you bought in or sold out, to show where your winning strategy identified the Bulltraderpt Inflection Point (or similar invented jargon). Pad it out with a complete novice's, GCSE-level guide to securities and the stockmarket to open the book, and lots of motivational BS, folksy anecdotes and pull quotes from famous historical figures about the need to seize your dreams and live the day. Job done.

lol, you are cynical, but I like it.

Thrugelmir

bulltraderpt wrote: »

A retail trader with knowledge and understanding can beat the market.

What does this "trader" know that the market doesn't?

EdGasket

Thanks. I find reviews on Amazon very useful for assessing books. I haven't read any of those though I have read a lot of others like Warren Buffet's books and Value Investing plus many less reputable like the Wolf of Wall Street, City Boy / Girl; that sort of real-life experience thing.

Had a quick look at reviews on Amazon of 'Trade Your way to Financial Freedom'; both the five star and one star reviews make good points.

fairleads

EdGasket wrote: »

Article 'Why most traders lose money...":

https://vantagepointtrading.com/archives/7665

The comments at the end are worth reading too. A salutary note from one of them:

"Nearly 2 decades under my belt and just blown up. So many lessons learned but after a certain time the mental fight slips, this game requires ur best not ur 2nd best, no less than constant excellence to win in the long term."

Ed
Why do strangers go to such great lengths to advise the investing public that frequent trading is a no win situation when it need not be so?
Simple -they have a hidden agenda/ulterior motive.
They are either selling a book, training course or product.
Or they are protecting their vested interests in the financial services industry.

Malthusian

fairleads wrote: »

Why do strangers go to such great lengths to advise the investing public that frequent trading is a no win situation when it need not be so?

Empathy. Reason. Basic human decency.

Simple -they have a hidden agenda/ulterior motive.

Of course we do.

They are either selling a book, training course or product.

Unlike the selfless gurus selling "Binary Option Your Way to Internet Monies" and "How A Single Mother With £20,000 College Debt Traded Her Way To Being Emperor of Xanadu". And filling expensive conference rooms full of mugs and charging them hundreds or thousands of quid to tell them how anyone can get rich quick on the markets and only fear is holding them back.

Or they are protecting their vested interests in the financial services industry.

The vested interests would love it if Joe Average could trade his way to being a millionaire. If everyone was doing it that translates into millions and billions in transaction fees, not the paltry few thousand they collect as he churns his £30,000 life savings for the 100th time in the belief that this time his research has spotted the big score.

bulltraderpt

Malthusian wrote: »

Unlike the selfless gurus selling "Binary Option Your Way to Internet Monies" and "How A Single Mother With £20,000 College Debt Traded Her Way To Being Emperor of Xanadu". And filling expensive conference rooms full of mugs and charging them hundreds or thousands of quid to tell them how anyone can get rich quick on the markets and only fear is holding them back.

You do have to wonder at the motivation of some of these attending seminars.

If you haven't got a passion for / a deep interest in the subject or you don't have a back ground in finance (i.e. accountancy) for the Fundamental Analysts types then why on earth would you try and trade?

You do occasionally see horror stories on the internet regarding people's losses. A guy I once knew told me about a chap who put 30k into that dog of a stock GKP at about £1.50, apparently he still had them when the last time he saw him when they were 30p. This chap didn't have a background, but followed his work mate in..

One born every minute..

fireblade28

Can you make money from day trading? Yes. Will you? No.

The people that do make money from it have complex trading algorithms and inside information.

Even if you are a good day trader you won't make any more than around 10% a year or so.

The only true way to make money on the stock market is through using index tracker funds. Which track the markets as a whole. Over the last 100 years or so they have gone up by 7% annually but thats an average.

This year I'm running at 15% average. Which is OUTSTANDING. This almost never happens. Next year I may be lucky to get 4% who knows.

Stock trading is only for the super rich that has enough disposable income to play a bit of a game. Anybody who claims to double your money in a week or some other crap is BS'ing you.