I have been trading a lot since i was 20. now i am 38.
I am not a millionaire but i learned so much that i know how to make money in trading, swing trading & investing. I have tried a lot of strategies out there. Since life has pushed me in the direction of spirituality and helping people i don't take much time doing it anymore and i never really enjoyed it that much. But i am good at it. I only lost money when there was corruption involved (as in company was fraud, ceo was fraud etc) but even experienced fund managers fell into the same trap as me.
So here go my two most important strategies:
* dont overthink or overstrategize. stocks always do the opposite of your extreme planning and thinking.
* look at the top percentage performers for the day (on barchart.com) for example
* browse through them and use your intuition as to what feels really hot
* buy it and hold it a couple of days or weeks sometimes months. Sell it. repeat
on forex:
* use heikenashi charting
* use technical indicators like CCI with (10 day and 25 days average) on 4 hours or day charts. not less than 4 hours.
* check whether the indicators show overbought or oversold situation. when the reversal happens watch the color of the bar change and then put in the buy or sell order in the direction of the reversal.
* works 95% of the time.
* never over leverage. always do a maximum of 2 trades its better just 1 trade. leveraged only 10% of your portfolio. you NEVER want to kill a position because you don't have the cash.
i know this sounds oversimplified but it works.
Why does it work? because your intuition knows more than your thoughts. Its as simple as that.
Through years of analyzing (and i am extremely good in statistics and analysis) of financial sheets, dilutions, management etc. I realized your gut feeling cannot be beating by your thoughts.
What you get when a good trade is close a kind of good feeling about it. When the good feeling is there the trade will go correct 99% of the time. When you have this not sure or clearly not good but you stick in it then its going to go against you.
Step 1: Buy index funds
Step 2: Buy every dip
Step 3: Pray to Janet Yellen
i have some $INDL .. india is big :-) also $TTM
Hmmm I could see it, might start watching those myself actually.
i own $MGT since 0.8 my most favourite stock bought on intuition only
Hey, I'm a full time stock trader.. I just started posting some videos this weekend to help others learn how to trade.. I turned $300 into over $50,000 last year just in cryptos alone.. please go take a look at my blog when you get a chance.
i never traded cryptos... great i will check it out... the first strategy i saw with cryptos is wait until it levels out and when it goes horizontal again then it will soon start to go up again. i saw this with pretty much every crypto. but i hate sitting at the PC and watching this crap all day long. but i might give it a try. i just dont feel money is that important anymore
You talk a lot about when to pick a stock, but that really isn't the most important part. The most important part is RISK MANAGEMENT.
The easiest way to become a profitable trader is to pick a system you like to trade (eg. swing trading, day trading, position trading). Then pick an indicator you like (eg. Ichimoku, CCI, MACD, Stochastics). And paper trade this system for 6 months.
Once you do this for 6 months you will have an idea of what the win percentage is and what sort of risk/reward you have on each trade. With this information you can pick a proper portfolio risk percentage and start making money. It will also help you identify if the system is even viable.
The best book I ever read about trading and turned me into a profitable trader was "My trading bible" by Mark Ritchie. It focus's almost exclusively on risk management and emotions.
paper trading doesnt work because most people do different trading when real cash is involved. i started immediately with money when i was young. i sold my internet business for 7000 and i put everything into stocks. its a different experience. risk management: i can add never have 10% or more in one position. thats pretty much it. for stocks i go for 10% and have 10-20 positions. for forex just one maximum 2 positions at 10% margin. in terms of emotions i totally agree. only observing my own emotions (my spiritual path helped a lot) i was able to distance from greed and fear completely
What do you mean no more than 10% in one position? 10% doesn't mean anything if it is not related to your stop loss. How much of your account is at risk if your stop loss order is hit?
Also I don't agree that paper trading doesn't work. It gives a trader practice using a new system. Yes the emotions are different between paper and real money... but someone who has practiced a system will have an idea of when that system works best. Going straight in with real money without practice will lead a trader to either: abandon the system if it doesn't make money right away, over trade, stop using proper risk management.
Plus intuition is one of the most dangerous ways a trader can trade. There is no repeat-ability and you are super susceptible to emotional trading. I'm all for doing an intuition trade here and there with a small amount of money as it keeps things interesting, but doing things exclusively on intuition will most likely yield underperformance and will guarantee a blown account by a newbie.
I've done a lot of statistical research on trading. You can become very good and very profitable if you can control your money management and emotions. You can even be a shitty timer and still make a lot of money. The key is discipline.
i dont use stop losses. i got stopped out of great positions before. maybe i have an advantage because i recognize the difference between intuition and emotion. so mental maturity i guess is key to doing successful trading and enjoyable trading. what i meant with 10% is if i have 100% capital i will allocate maximum of 10% to one position
but to give you one example why this works... i picked a stock just on this gut feeling and 2 weeks later it got bought by sales force. since switching to intuition only it just works almost all the time.
Did you just learn by experience, or did you have some kind of schooling? I have been looking for online courses, but haven't had much success. Do you know of any?
i was reading a lot of books. the rest of it is mostly trial and error. Nicolas Darvas, Warren Buffett and some other ones. but to be honest these strategies only work for the people who invented them. Nicolas darvas was making money during a huge boom and warren buffett has a lot of leverage and buys out the companies strips them of cash and reinvests that money into other projects. so none of it really works for the average joe.
I read a bunch of books and watch a crap load of youtube and its pretty well all useless.. I wouldn't waste money on a course.. You have the biggest potential right now with cryptos.. and just go watch my videos, ill keep putting them out.. But its best to learn from someone like me who is making his living in the markets and doesn't want anything from you. I make plenty on my own, I would never charge anyone to help them out :)
i agree... lots of potential in cryptos.. this is the era of rise of cryptos.. but i do both and i like the option of knowing both a bit... cryptos are more time intensive as it moves faster. with stocks i just buy and hold and not watch it for a few days or weeks. much harder with cryptos
Thanks, I will check them out. What is your YouTube channels name.? Can you suggest anyone else?
Lucky36Luc .. and yeah if you want a great trader Madaztrader is awesome hes also on youtube... I'm new however to making videos