Everybody knows that if you want to be in top profitability for the long term you have to put all your money in TSLA.
My shorter answer is
I know most people say 1-3% account value of a stop loss but if you’re not comfortable with that, go 0.5-1% Remember that you will lose trades and you have to be comfortable with that
Ignore everyone who says it’s gambling
Find a market that suits you
Find the time frame that suits
Finally separate emotion
Practice some more
Use a small real money fund to start with
Yes that is true. Greed, or wanting financial freedom. Could be either!
Patience can run up the interest though. I’ve 10 Mastercard CFDs at the moment and it’s a dollar a day. Fairly high. I never did get into futures and fx though, for the opposite reason as yourself. I’m bored and when 14:30 comes around, it gives me something to do for the afternoon.
It depends how you define profitable.
- If you never sell a security unless the value has gone up - is that profitable?
- If you buy two securities for £100, a year later, you sell one for £250, and the other goes bust, is that profitable?
- If you bought a stock at £100, and 5 years later, is that profitable, if the average rate of inflation was 2.5%?
You need to define your benchmark. For me personally, I like to compare my own personal stock selection returns, to the Lifestrategy 100% return. As in by actively selecting stocks, would I have bet the global market on average.
Thanks everyone for your input.
I’ll try to explain myself better so that we narrow down the all possible ways to interpret my initial post.
The question is…
Is there anyone out there, which by:
- looking at the EUR/USD for example so we don’t go too far
- picking the timeframe you like
- drawing the lines you like
- use the indicators you like
can firmly say that the price will hit that level and go up to there with nearly 100% probability?
Because I think that there is out there people that know how to, because I have seen people in forums being that precise, and I have been that precise myself as well quite a few times.
So I have had evidence that it’s possible to predict what will happen, it simply depends on how religiously we are following the strategy without incurring in fears, rush or other mental bias.
If you simply stick to the analysis can you confidently say “buy or sell at that price because it will go up or down to that other price”?
Anyone out there able to do that? Is my question clear now?
Think of card counting in blackjack. Go all in on one hand and you’re going to crash out spectacularly, but with strict managed risk it becomes profitable
I’ve read the “top trader” blogs and watched their YouTube etc and basically all of them have more losers than winners. Same as you. However they cut the losers short quicky, and let the winning trades run. At the end of the month they are in the green even though they “lost” the majority of the time. How’s your risk control? Maybe if you closed losing trades quicker you’d have better results. Note: I am not a trading expert. Just regurgitating what I’ve read.
Here is a trade I have open for USD/JPY, definitely not one of my best as its under the long term average and I’m holding a long position, and note the risk reward ratio is near 1:1 and I have a stupidly tight stop (based on the 4H chart) which is not what I’d want but this is a downside of only being able to trade outside of working hours, but, it is easy to explain why I chose it
Anyway, price dropped into an area that if you look at the bottom chart (1W time frame) is a support level that has been tested and held multiple times. Then in the 1D chart you can see the support held with a moderately bullish candle and sentiment is long, so I went long on the 1D final candle with a TP target in the next area of value where I expect to encounter resistance.
(This is not trading or financial advice and solely how I have personally interpreted this chart and price action, feel free to call me an idiot)
Edit: An extra disclaimer, I do not consider myself a ‘profitable trader’, I’ll loop back in 10 months time and review
interesting I didn’t know that, I just found the free version online, not much is free nowadays so even an outdated free version is good.
Started in April and I’m at a 29% profit. I have zero strategy.
I have not read any books, I don’t watch videos. I only read articles sometimes but that’s usually after the fact (if stock goes up or down)
You all have strategies? I just buy low and sell high.
Honestly, I’m not bragging. Maybe I’ve just been really lucky.
I did lose 2k on wirecard…so that taught me to read up on a companys current situation in terms of being under investigation or law suits. But other than that, I just look at the charts on 212.
Maybe I should stop before my luck runs out. Cos you lot seem to be clued up with books and stuff
Top tip - motley Fool is a rubbish site. Stay away
P.s @UndercoverWinner dude. Chill. You’re being really emo in this thread man. People are trying to help from what I can see. Tbh, I don’t think you can be “taught” to be a good trader. Like people are saying, you just need to use the practice account to start trusting your gut.
an S&P 500 tracker has returned about the same amount since April so you could say you are matching the market. (with more effort)
Should look into that. Thanks for the tip!
Any particular one? Tech?
no worries. I think it’s always important to compare returns to market returns. CSP1/VUSA are the ones that have gone up by that amount, EQQQ OR IITU (both tech) has probably gone up more even.
I started the post and the first reply was some dude taking the piss and asking me questions instead of answering mine, so I simply re phrased my questions…
And since I did some guys including you have started sharing their views democratically without having fun of me on what my learning on books and knowledge of the trading topic could be.
Also none is forced to write here, do I look emo? You may look something else.
The point here is not to judge the way we appear, but the way we approach the market.
So going back to your message, you tried to help as you shared your experience, others did too, my harsh reply was to people that chose to exclusively take the piss.
Fair enough mate. I didn’t read it as taking the Micky out of you as a person or your appearance. The name suggests you’re a bit of a Hustler in the stock market and you then posted an ironic question. It was a play on words. Community has good people here willing to help, gentle banter and jokes come with it. It’s nothing personal. They don’t know your from Adam. Good luck with your portfolio. Play big on the practice mode. You’ll soon get your bearings right. Read up on inter relational stocks. What causes what kind of stocks to go up or down. Everything is connected. In my opinion, if youre playing small, you don’t need to know about candles and all of that. But that’s just me. I’m sure others might disagree.
Oh, and remember. It’s never a loss till you cash out. I’ve come back from being 3k in the red before. Just wait. It usually bounces back. Takes time though. Patience is paramount
You mentioned you also trade indices. How do you do that if you can’t see further back than a couple of weeks? I’m just looking at the Germany index for example. The chart suddenly goes from Sept 2020 to Sept 2018.
You should considere Bitcoin an option
Might as well go all in on ripple in that case
It’s metal/commodity futures I’m interested in. I avoid indicies becasue of this problem
If you watched
“margin call” “the big short” the two young guys had a strategy like “people think bad things never happen” and they were betting on the cheapest of the bad things happening. loose many times but small amounts and win rarely a big amount.
I am applying the opposite as my option trading strategy. “people think good things never happen” but when I say good things I am talking about huge companies. Like Toyota, IBM, PG, pfizer etc. Since these shares very little volatility their options are dirt cheap, and buy open ended calls near their “earnings dates” if they beat market expectations there is a jump in price (for these shares a 5% is a jump - that results in 20x-100x)
I’m overall positive for the last 7 years for this strategy, returning about 80% in FY2018/19 (<- my best year) but I can’t stress enough how risky this strategy is. The money I’m using for this is completely my “spare money” and I have accepted the fact that can go to 0 any day and every day.
edit: I have a fixed amount of money in option trading constantly and I withdraw $9999 whenever my profits are over $10K, so I don’t have a calculated metric over years. For the aforementioned FY18/19 I had 50K at 6th April 2018 in this broker and have withdrawn $39K (leaving the 50K in) by the end of March 2019. otherwise for stocks investing I only use TTWROR (XIRR)