what is your advice for a beginner?

#4
There are no certainties in life, only probabilities, so life as a whole is a gamble, & we're gamblers; so, you can never get away from gambling, & the only thing you can do as an individual is to try to gamble as well as you can in various aspects of life (which, for some people, might involve deciding NOT to trade the stock-market at all, if they can't or aren't able to do it well enough).
 
#5
For traders who have just entered into trading, I would suggest that do not start trading blindly. Build a plan and then proceed. Decide upon your time and budget constraints beforehand, so that there is no confusion later. Also, avoid over-trading in the beginning. Increase your pace gradually. Then, do make use of stop loss to limit your losses. Most important, do not follow the crowd. Have patience and work your own probabilities.
 

stoch

Active Member
#6
For traders who have just entered into trading, I would suggest that do not start trading blindly. Build a plan and then proceed. Decide upon your time and budget constraints beforehand, so that there is no confusion later. Also, avoid over-trading in the beginning. Increase your pace gradually. Then, do make use of stop loss to limit your losses. Most important, do not follow the crowd. Have patience and work your own probabilities.
Do you take lessons from losses or you simply try to forget them? I still can't find best way to deal with them...
 
#7
How successful are you in stock market trading? What is your advice to the beginners?
remove all prejudice .. many may advise to you here and it looks very awkward and foolish to you .. only to come back and see the same advise after five years. by that time you would have blown multiple times ur trading account.
ok now back to subject .

A a newcomers my advise is don't watch any stock mkt channels or news and no need to read any technical or fundamental analysis. instead the easy way is
Step 1
u will see in main stream media ( like times of india, sun tv, india today like news channels ) some news like blood bath in dalal street , some big company go bankrupt, or some bank , god forbid some suicide stories etc . that time just come and see and ensure the index like nifty/sensex lost more than 30% of its recent peak . then go and buy some blue chip stocks ( here only u need to spend some time what all those companies that too big to fail) and buy in three/five installments . diversify the field in ur purchase like banking, oil, motor, fmgc, etc .
then shut down and go hibernate
step2 ,,, may be after 7 to 10 years again main stream media will come and say investor added fews lakhs crore in single day .., even the paper boy taking abt investing in mkt . open your trading account and u will surprised to see the fortune in that . sell all .
follow step 1.
if your are at 30 : in the first 10 years 1 lakhs will be 20 lakhs and do your maths . have a peaceful life. teach your kids too .

now the twist . the whole above advise looks to you awkward and foolish.
 
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#8
Do you take lessons from losses or you simply try to forget them? I still can't find best way to deal with them...
Losses make you attentive towards what is not to be done in future. So yes, don't take them as a failure, rather learn from them. Try and be more disciplined while trading. This is the only way you will gradually learn how to deal with losses.
 

stoch

Active Member
#10
I would also say that it is very important for a newbie trader to avoid unexpected level. This is "level 2"of depth of important conclusions about money management which many traders still fail to realise even after several years of experience. If your trading plan cover all risks concentrated in 95th percentile (Excluding ultra low tail risks) then it can be safely said that you have a trading plan.
 

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