A question I get a lot (Some guidance for a new trader)

posted by daytraderockstar

Mar 14, 2010 11:43 am

Each Sunday I tried to catch up on the hundreds of email I receive during the week, I am going to start posting some of the more important and repetitive questions to help the beginner trader I hope you find this addition helpful.

Dear DTRS

I am completely new to day trading, I picked up the book day trading for dummies to sort of understand the foundation of day trading to hopefully branch off of.....any advice you can give? I am a very good problem solver and hate working for a boss and I am a very smart guy So my plan is to spend the next few months studying the ins and outs of trading, seeing other methods and strategies and understand why people chose these strategies in hopes of improvising or applying them to my outlook on day trading. Also I found a program that lets me use play money with real life trading to sort of put my studying to work without loosing REAL money. To see if i have a knack for this without reaching into my pocket just yet...any advice you can give me? If I have any questions do you mind if I email you? also I have so far only got to watch about 30 of your videos I got about 270 to left to watch hahaha. I am a fan of forums in general any day trading forums you would recommend because I like to learn also from peoples first hand experience.thanks in advance and keep up the awesome work on youtube!!

-Derek

Dear Derek

     If your just starting out  My best advise is to open up a small account you don't need to fund it will a lot of cash , then start learning and develop a method, feel free to use my methodology to trade it is very safe and profitable, usually when someone starts out small they tend to start trading low price stock ..thinking they can make more for their money. This is the WRONG approach, stick to quality and also stick to trends and then develop the discipline of buying on a pullback of a strong trend this will instantly decrease your risk and increase your reward potential. These are the simple facts of trading that new traders seem to ignore. Please stay away from stocks you do not know ( companies you  never heard of ). You will eventually acquire those skills to trade those, but its more of a gamble and if you wanted to gamble you know where you can go for that.  The other part about paper trading.. good and bad..I will take it you can figure out the good, but the negatives equal that out.. You will never feel the risk involved in trading unless you trade with real money, There is a big factor when you add fear into the trading and if i can see one factor why most traders fail it is because they get scared out of there trades as they are starting off with a small account. Its OK to trade with 20 shares or 50 shares. But you need to hone that discipline and gain the true respect of the markets, this can only be done with real money. Hope this helps

DTRS

How to Use Finviz.com to find stock set ups

posted by daytraderockstar

Aug 23, 2009 2:36 pm

$COMPQ ABCD correction

May 09, 2009 11:22 pm