posted
Give a man a fish, feed him for a day; Teach a man to fish, and feed him for life.
I am new to trading, i dont know how to read any charts, where would you guys suggest i learn at?
I have been following the microstocks board chatter since december and have turned 80$ into 1000$ so far, but id rather make my own decision rather than relying on other people talking about things i dont understand.
Where is the best resource to understand charts, candlesticks, volume, etc etc etc...
posted
maybe i should have included my goals as well. I am looking to do day/week trading with decent profit, id like to take out 800$ or so a month without dipping below what i started with in the beginning of the month, so i can have a steady secondary income. I have found the micro cap stocks to be extremely profitable, and at the same time extremely risky (i got in 275,000 * 0.0006 on rhsn but at the same time 500,000 rvmn/rvmo when it looked promising). id like to continue the microcap stocks, but id like to learn to make smarter choices.
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posted
Might want to start out with modest goals... I'm not knocking you but man turning $80 into $800 a month profit is going to take some learning. I made the same mistake and always waited for the big one to hit because I wanted to make x amount of profits per month. Than I would turn my nose up at the small profits and hold, waiting for it to turn into a 10,000% gain and wind up taking a loss. I learned the hard way to take profits and gradually as I've learned more my profits have gotten a little bigger each time. The key is learning, listening to many wise people on this board, and study like heck. All the while taking profits and adjusting your goals.
Right now what works for me is: take 50% profit, than take your pricnipal at 100% and ride free shares with the rest. Yeah you leave some profit on the table and it's backwards from what more experienced traders do, but too many times I would let it ride at 50% waiting for 100% and than wind up taking a loss or miniscule profit. I just don't know enough yet what I'm doing to wait for 100%.
If you take profits you can't go wrong. Sure you may have some stocks where you took $100 profit and you could have made $1000 profit if you had held. But there will be more where you could have made $100 profit and wound up taking a $50 loss. The big boys can pick out those 1000% gains and wait for it to happen. I don't have that much experience yet.
posted
Read the Toni Turner book...awesome...there are plenty of sites and books that help with the learning process...feel free to PM me and I can send you some links...try the paper trading...it is a great way to learn!!! also...don't fall for BS...and take your profits..and don't look back...set your sell point and get out..don't be greedy...there is some wonderful information on this board...and look at the home page...great info there...
good luck to you!
-------------------- #1 Rule: Protect your capital! #2 Rule: Never fall for the BS on the boards!
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posted
First, there is a FREE e-book online from Peter Leeds, and although he doesn't like OTC-BB & Pinksheet Stocks, nor does he like stocks below $1, you can at least learn something about technical analysis by reading through it. And you can't beat the price. Just ignore the hype about subscribing to his newsletter.
Secondly, I agree with the other posters - be more modest in your goals. You are setting yourself up for a major fall due to greed. 3-5% a week to start with would be good.
Third, you can't really "daytrade" with less than $25,000. That's SEC rules. You will have to "swing trade", leaving your money in for days, or maybe weeks at a time and then taking profit. Swing trading is a great way to make money - especially if you don't have more than $1000 to throw into a stock. Even if you were allowed to day trade with a few hundred dollars, it would be hard to make much profit because your principal is too small to play within the daily spread, and your brokerage commissions are going to shrink that spread even further.
Indytrader
-------------------- The views and opinions expressed here are solely those of Indytrader. Make your own decisions based on what's right for you and your money.
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JohnWayne gives some good advice there. One in the hand is better than two in the bush. Most people lose money because they get greedy and dont take profit, they think there is more coming. 99% of the time it doesnt come. Your not losing money by pulling out early and taking your profit. This is the hardest lesson to learn and where most fail.
-------------------- If you made money, it was a good trade
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posted
wow thanks for the detailed response guys! i bought that book, i read all the stuff about taking profit early and controlling fear and greed, completely changed my outlook on the way the market works.
when i get to the end of the book if i have more questions i will make another post, and again thank you for your kindness.
oh and one more thing, John can you explain this a little different? with an example maybe?
"Right now what works for me is: take 50% profit, than take your pricnipal at 100% and ride free shares with the rest. Yeah you leave some profit on the table and it's backwards from what more experienced traders do, but too many times I would let it ride at 50% waiting for 100% and than wind up taking a loss or miniscule profit. I just don't know enough yet what I'm doing to wait for 100%."
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posted
Multi- no problem. I will omit commissions, cost of trade from this formula for simplicity sake
Let's say I put $500 in a stock at .10. I now have 5,000 shares.
when the PPS reaches .15 (50%) I have $250 profit. I sell out $250 worth of shares-approx 1600 Leaving me with 3400 shares.
If it then drops back to my buy in price .10, I sell all, leaving me with 50% profit overall.
But if it continues to climb up to 100% profit(.20) I sell enough shares to equal the amount of cash I bought in with, in this case $500, which equals 2500 shares.
I now have 50% pure profit and 900 shares remaining. I can wait to sell that until I feel the run is over or I can play it long term and wait for it to shoot to the moon.
Now many experienced traders will trade like this: Buy in for $500 worth of shares at .10 (5000 shares). Sell 1/2 of the shares (2500) when it reaches .20(100% profit). Let the rest ride for the home run.
The obvious advantage is that at .20 they have 100% profit whereas at .20 I only have 50% profit.
But I feel I'm not experienced enough yet to wait for that 100%.
posted
Yes I'm sorry dangit that is the third time I've posted the same mistake on different threads. I seem to have a mind block. I sell $250 worth of shares at 50% or .15, than if it goes up further but not to 100%, and than drops back to 50% profit I sell out. I'm not sure why I keep making that same mistake in my posts! The amazing thing is it makes perfect sense when I read it!
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