If you missed it M , this is what i posted a few months ago in the advise to trading the alsi
Posted 04 November 2018 - 09:05 PM
1. Trading is a closed sum game. IE for every winner there is a loser unlike investing. And like any other game, you will get out from what you put in. Lots of time and effort needed to make in trading.
2. The most important advise i can give you over and over again on Trading: Protection of capital should be your first and only priority when you enter the trading world. Always have a stop loss in place however good the trade may look. if you priority is make money , you will lose all your money i promise you.
3.Do not wait for trade ideas from others . Work on being self reliant.
4. Initially trade small, preserve and then increase your trade size as you gain satisfying levels of proficiency, Rome was not built in a day.
5. Never compare yourself to others. That is a fools game
6. Read good books about trading before starting to trade
7. Try to get a mentor who has experience and has been long in the game. If not try to ask them better questions to improve your trading skills
8. Work on creating you own trading system. First thing is determine if you want to be a scalper, day trader, swing trader, medium term trader pr long term trader. For newbies i suggest try day trading first.
9. Also determine your time frame of charts you want to use. 5 min , 15 min, 30 min, i hr, 4 hr, daily etc
Practice , practice and more practice on that time frame until your see recurring patters that will make you enter a trade.
10.Learn about charting techniques and indicators that will help you in your charting. More does not mean better. First thing to learn about is support and resistance levels by means of trend lines. That is the start. Then try to learn about the different chart patters namely, head and shoulders, inverse head and shoulders, cup and handle, triangles, double bottoms, double tops, etc etc as they become more complicated
11. Put in the effort that will speed up your learning curve.
12. As a newbie do not put in very high goals.Be realistic. In your first year of trading you would be doing very well if you break even for the year. Hand in there as you will only get better. In fact it make take you a good three years before you actually can say you confident of making money. In the first year i have heard of traders busting their accounts a few times. Thus after a year decide if this trading is for you or not.
13. Trading is a very emotional game. Its actually not about the markets , its about you. You will learn a lot of things about yourself you never knew. After a year decide if you have the temperament to continue or not.
14. If you a smoker, drinker, gambler or womanizer, i suggest you dont go into trading.
15. Like gambling, trading is very addictive. Only trade with money you are prepared to lose otherwise you can lose your house , your car, your wife and finally have your dad take care of you.
Plenty more advise and i will continue to give as time dictates.
Please remember rule number 2... Preserve your capital at all times Trade small.. The more chips you have , the longer you can play. No chips no play ( game over)
