Grrrr when will i learn

Discussion in 'Chit Chat & Introductions' started by kahoona, Aug 7, 2014.

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  1. kahoona

    kahoona Well-Known Member
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    Okay I know this nothing to with window cleaning, but as my round accounts for about 10 days work in the other 10 day working days of the month I trade the financial markets, mainly currencies a couple of indexes and a commodities such as S&P500, FTSE, crude oil, gold, silver etc.

    An on going theme with my trading is exiting positions too early, last week I shorted the New Zealand doller against the Japanese Yen. The little triangles on the chart below show where I got in and exited for a tiny profit, then typically the pair based out big time, currently if i was still in this trade that would equal 10 days window cleaning!

    never mind on to the next trade.

    07-08-2014 17-56-28.png
     
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  2. Smurf

    Smurf Banned
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    It's a mugs game playing the markets unless you can afford to take a hit bigtime which happens more often than not.:D
     
  3. daveyboy

    daveyboy Legend
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    On your money smurf you could do it:laugh:
     
  4. TolishAPurd

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    I'm in my first year of dabbling in the stock market. I've won some, and lost some...so I'm still about even. But I am learning a lot. Currently looking for a good time to buy into Lloyds.
     
  5. Smurf

    Smurf Banned
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    There is no real money to be made so I'm out :D
     
  6. kahoona

    kahoona Well-Known Member
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    I would not say its a mugs game Smurf, but equally there are plenty of easy ways to lose alot of money if you don't know what your doing. There are a ton of scammers out there waiting to sell their get rich quick strategies or trading courses for beating the markets, and sadly many ill informed punters part with thousands £'s in the hope they will become the next Warren Buffet.

    Then you have the market and price manipulations by the institutional players, inter-banks and governments to contend with, leary territory to play around in if you don't know what your doing.

    Whilst I dont wish to crow I have been trading for some 12 years and have picked up a thing or two in that time, which has allowed me to grow my account by average 12% for the last 5 years. not stella, but my risk profil is very conservative, and 12%pa still beats the major indices and is far better than any mainstream investment vehicles eg isa's.

    So I would say the markets are not easy money, in fact probably the farthest from it, but a great challenge and rewarding if your willing to be sensible and persevere.
     
  7. TolishAPurd

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    Any tips appreciated mate.:thumbsup:
     
  8. kahoona

    kahoona Well-Known Member
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    Tolish if your serious about making money in the markets, the first thing you should do is learn and understand risk management (in the context of trading financial markets). Every time you execute a trade (buy some shares for example) you are exposing your money to high risk of loss. By learning to manage losses correctly you will keep your equity (money) longer, giving you better chance to coming up with an edge over the markets that will allow you to extract constant profits. If you lose all your dosh before you start making money your donald ducked!

    Now a paradox, don't trust anything you read on the web! including what I have to say. Do your own research, keep things simple. If a company is making profits and its in a market thats is in demand and growing, it has a business or products that are easy to understand, does not have significant debt and is a reasonalbley sizable and stable business in say the FTSE 250, (no penny stockes please), chances are it will increase in value over time.

    A warning though!
    The equity markets (shares) have been very bullish (going up) for some time now, this is mainly due to EQ from the major global powers, US federal reserve, bank of england. ecb and bank of japan et al. These stimulus programs will have to stop or at least reduce significantly and when they do (general talk is saying Oct), the markets will most likely take a big hit & anyone holding shares will most likely feel their sphincter tighten, as prices go down! You could of course make money when this happens (& it will) by shorting the markets, but lets not get ahead of ourselves,,,,
     
  9. kahoona

    kahoona Well-Known Member
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    learn risk management and money management first.

    hint Google "stop loss" & "money management percent risk"
     
  10. TolishAPurd

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    Thanks mate.:thumbsup: You're right about the market manip and not listening to anyone. I learnt that the hard way already.
     
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