Rashid,
I must comment here. You are a short term trader, so you take short term profits. Conventional wisdom says let your profits run, and cut your losses. It is good advice. If you are a daytrader, you take your profits day by day. There is much to be said for taking small or large daily profits. You are not in the market overnight, and good and bad things can happen there. First, look at longer term charts to get your direction, and then shorter term for your tactics. If you read Wizards, then you know that the people profiled are "consumed" by what they do, and most started and got their basis in the trading pits. They had the advantage of learning the hard way and those profiled are or were successful. I think that it is extremely hard for people like us who do not have the "pit" experience to understand how the markets work, but on the other hand, I think that it is extremely possible to make a good living off the floor with the technical tools that we have today. We can perhaps see more than the floor trader, but!! You fill in the blanks--
I do not wish to give the impression that I am any kind of expert or even a very successful trader.
It is basic that you as a trader, know the basics. That is how will the market respond to news. If the dollar goes down, what happens to this or that. If interest rates go up or down, is that good or bad for this or that. I know that this sounds like kindergarten, but it is often overlooked by traders, and they get burned.
I would like to know if you know of forums which discuss this sort of thing. I am interested in trading systems, technical analysis, in the extreme. I know that most here are.
One other comment is that there are many systems, schemes and approaches that have worked well for individual traders. What is right for John might not work for Fred, etc. I know people who only work spreads and are successful, and others who trade this or that. Many successful traders concentrate on one or two markets and do well. Many fail who spread themselves too thin.
I do not know if this helps at all, but good trading and good luck--
Jack!! |
