|Great "REAL" commentary Rinholdt!
Yes, you are one of the first to start posting here at StockTraderWiz. I really appreciate having someone with some excellent experience like yourself to participate. StockTraderWiz is a new learning site started in January of this year. I have great plans for creating an awesome site for traders of all levels to continue to grow. I started this site to help as many traders as I possibly can to get stated down the "right" path and to save them all the pain I went through when I was learning. I hope you will help me help others...sounds like you have a lot of lessons to share.
The "Market" is huge...a person cannot hope to learn it all!
Trying to learn the market is like going to the university and majoring in EVERYTHING!
There is TOO MUCH to learn and no single person can learn it all.
Just as Rinholdt was saying...37-38 years learning the market...and still feels like he is just graduating kindergarten. There is SO MUCH to learn in the markets that it is really impossible to get a good handle on all of it.
The good news is...YOU DON'T HAVE TO!
I spent most of my early years jumping from one tactic to another, and tried many different trading vehicles. I struggled a lot (and lost most of the time) because I always thought that to make money in the market, I needed to learn everything there was to learn. I learned "a little about a lot."
I read tons of books on stocks, future, options, forex, etfs, mutual funds, (everything I could get my hands on) and would buy training courses in those areas too. I spent a lot of time and a LOT of money bouncing around thinking I had to learn more and more. All I ended up doing was confusing myself more and my trading only improved by my own trial and error.
My wins in the market didn't really start until I decide to NARROW my focus. I dumped all the other trading vehicles and decided I should stick to stocks. Why stocks? Because they are easy to understand!
I learned that to make a lot of money in the market I didn't need to learn more about the MARKET, but instead learn to spot a specific few technical setups and then learn EVERYTHING about how to play that specific situation. I learned that you only need to master a few things well to consistently pull money from the market. I started to learn "a lot about a little."
I studied price movements and technical patterns and did the hardest thing...especially when beginning...I PATIENTLY waited for the right setup to happen in the market. You mention gambling...that is the hardest thing to get over. A new trader feels like they have to be "in" a stock at all times.
Patience is a virtue! (And so is a TRADING PLAN)
My trading improved exponentially when I held myself back from making trades when they didn't fit into my specific setup. I created a trading plan (rules about when I would place a trade and when I would wait) and FORCED myself to follow it. That is a really hard thing for a beginning trader to do because they think that they will miss the BIG opportunity. They don't realize there are hundreds of other opportunities at any given moment. Missing those opportunities that don't fit perfectly into your strategy will actually help you in the long run.
You are the master of your own trading destiny!
I agree 100% with Rinholdt! You have to make your own decisions (right or wrong) in the market if you ever plan on making it long term. I can tell you what to trade and when to trade it...but then what did you really learn? You know the whole "Feed a man a fish" cliche is especially true in the markets. YOU have to take 100% responsibility for your success. This website is meant to help you learn what not to do and hopefully it will shorten your learning curve. But, being successful in the stock market will only come from you actually placing trades, asking questions, and trying to actively improve your approach to trading.
I am the first to say that penny stocks are much higher risk than "quality" (higher priced) stocks. Penny stocks should be avoided when you are a beginning trader as it is VERY EASY to lose your money quickly in penny stocks. Believe me...I know!
Penny stocks move in higher percentage swings as compared to higher priced stocks. This can be great if you are an experienced trader and on the right side of a trade, but can be devastating to a beginner that really needs to protect his/her trading capital. A beginning trader is better off trading stocks that are $5 and over.
I have posted some of my penny stock trades at StockTraderWiz, but that is not all I trade. I trade stocks in all price ranges. Remember (as I mentioned above), I look for specific price patterns and play the pattern, and don't care what price level I am playing. We are looking for high probability trades.
Every trader develops their own trading style. Your trading style will show up as you start to trade. It will form based on you own personality and emotion. Stock trading is an emotional event, there is no doubt about it. To become a better trader, you need to control your emotions. Easier said than done as Rinholdt clearly states. I overcame my emotions by trading my plan and focusing on trying to improve my TRADING--entries, exits, etc., and not on whether I won or lost. If you focus on trading well, the money will come.
That is why having a trading journal is very important for me. I review every trade and ask myself (win or loss) how could I have improved the execution of this trade. It sound boring and like it would be a hassle, but if you really want to make it in the markets, I recommend you spend time on it. Every improvement you make to your trading will have compounding benefits long term. If you haven't tried our Stock Wiz app, you definitely should! I am a very experience trader and I still use it everyday AND I take the time to review my trades weekly. Trading is a serious business to me. Why wouldn't I want to take the time to improve my trading?
Welcome Rinholdt and thanks for a great post!
It looks like Rinholdt has a lot of experience that I hope he will share with the rest of us! I appreciate your great post and your willingness to help others avoid the struggles you had.
I look forward to more of your posts.