traps set for newbie

Hello,

What are the basic traps set for the newbie investor to kick him out of the market?

Hi GB,

The newbie kicks him/her self out of the market by not investing. Not investing in learning, not investing in back testing and not investing in paper trading before entering the market.

Learn the basics before trying the more risky stuff. The greater the potential for profit, the greater the potential for risk and the faster the latter will come.

If you are a newbie, search for the thread Beginners Guide on this forum and start with the links there. Don't listen to tips until you know how to validate them with your own research.

Hope this helps.

market itself is a trap.......

dost - Thanks for helping me out.

In the reply you have used "paper trading", what basically is that.

I don't have support of any body and I'm going to invest 1000 INR as start up in share trading.

What do you say?

Hi GB,
The best way to learn is by doing it. However you don't have to risk your money to do so. 1000 is very little to invest.

Start with this thread and read the links that interest you.

http://www.traderji.com/beginners-guide/9373-new-members-please-read.html

Then test the system you like.

Paper trading is simply getting a piece of paper and a pen, pick a stock you like for any reason or just because it is the first you see. Write down the stock it's price today and then find out as much as you can about the stock. When the price moves up, find out why, when it moves down, find out why.

You can pick more stocks and decide a BUY price and then decide where to place a STOP LOSS and then when to exit the trade on paper. Keep yourself honest and see if you would really make a profit or a loss. Continue until you are CONSISTENTLY making profits. The trick is to cut your losses short, i.e. minimise your losses, and maximise your profits. Out of 10 trades if you only get one profit and 9 lossess, your profit should be greater than the losses.

Reading the threads in this forum will give you more detail on the above ideas.

Hope this helps.

Hi,

I am newbie also and I want to know How to find out why it has moved down or moved up ? Is there any specific place I should be looking to see why a stock is moving up / down ? And what to check that will tell me why its going up / down

Thanks.

There are no traps set for newbie investor to kick him out but there are traps set to make the newbie keep pouring more money in the markets to gamble

The guy will only invest if he is making profit!

I didn't get you, can you please clarify......

If you keep making orofits you will keep on increasing your capital for getting better returns...Lot of gpositive small trades will boost your capital and even one bad trade can wipe out the most of it.Thats the biggest trap!!! Go slowly, first invest in learning about the markets and then invest your hard earned money..

a good place to start is this http://www.traderji.com/technical-analysis/6072-teach-man-fish.html