14 Year Old Forex Trader's Lessons

pin on resistance

nice read

posted by textor at TAF

http://www.tilsonfunds.com/TilsonBehavioralFinance.pdf

my wife has gone to see a medium, my daughter is doing a sleep over at school an (evacuee) and i am just chilling out. i got phoned earlier to see if i wanted to be a bouncer in a portsmouth club but nah.i done my paper work for trades i hope to do sun/mon and hopefully i'll see both rugby games in morning and also play myself in the afternoon

Buma, this is a word of encouragement from 1 young trader to another.


I started at 18 ... thinking that i could take on the world and defeat it.. seems so easy on demo.. started off with 2k of my savings.. was lucky by a fair bit.. 2008 crash and i just chucked ALL my money into a stock that gave me 500% in 2 years.. took my 10k .. thinking .. hey that's easy... and lost everything within 1 year back to 1.9k....


I took about 6 months off trading to really read and absorb as much as i could.. i'm still far from proficient but i have read a fair bit... I decided to roll my money back to 10k slowly but surely with proper money management and a discipline head screwed on ....




I have successfully made about 85% this month alone with a leverage of about 5 - 15 : 1 never more than 15.... (3 mini lots)... Don't be disheartened... it's a life long lesson well worth spending 400 bucks for....


What i learnt so far that i hope you pick up....

1). Discipline and money management is key.. trading skills is about 40% which you can learn with screen time but emotions is a random variable that you have to control. You can't control the market.. but you sure as shit can control yourself.


2). Never say never.... Don't give up.. don't quit.. don't let whatever desire you have slip away from you .. keep trading and trading and trading.. No money? work and save... keep aside 20% every month for your savings and compounded, it works wonders by the time you are 22 like me... (Wish i started way earlier) .. the rest you can spend or trade.. Remember to study hard.. but study what you love to and do the best that you can with whatever you study .. otherwise don't..

3). Bounce back.... You will make mistakes.. old mistakes.. new mistakes.... but never ever forget your old mistakes.. you will be bound to make them again.. but just remember to be damn angry at yourself whenever you repeat them again.


4). Keep a trading logbook / journal and set realistic goals and reasonable targets.... It works wonders.. with a step by step daily plan you can never go wrong.. i never did believe in that till i actually started doing. You can keep track of your profit and losses and days where you screw up or did miracles. Examine and reflect them at the end of every week.


5). Learn learn learn ... these are a couple of books i recommend you to read. Not exhaustive but it taught me wonders.

i). Reminiscence of a stock operator (human emotions)
ii). Charles Mackay (1896) the maddness of the crowd (trading psychology)
iii) The alchemy of fiance by george soros
iv). Day trading by Kathy lien
v). Ed thrope and his beat the market / table (if you are mathematically inclined)
vi.) Eugene Fama, Debont and tatler and Jegadeesh and Titman.
vii). Benjamin Graham World Currency and Commodities
viii). Benjamin Graham Storage and stability
viiii). Ken Fischer Common stocks and uncommon profits.



That's all that i can give to you as an advice for now.. i have alot more books to recommend .. but you need to be able to connect the dots and think for yourself and understand... Lastly, remember that life isn't always only about making money.... it's alright to fail... don't be loss averse.. but don't be fool hardy as well..


From a 22 years old to you

Thought it was for tedge lol .. tedge seems like an old bag who doesn't need this crap lol

has anyone got any info on the very successful traders who who just trade blind. i am not speaking about gimmicks but a couple of guys do this i was able to speak to one years ago but i lost contact details. i am not trying to undermind anyone as you tech talk is good and sound

dont call Tedge or i'll send the boys round lol

time to chill man,pop that beer open, get legs up,and come on ENGLAND!!

woooooo woooooo
come on boys

AND PIPS

LOL

A LOVELY COMPLIMENT Leinadgnow,no offence taken,only joking

buma is not the only young one around here

this lion is not a cub but a young adult

26

here are some exercises on staying objective, and looking for probabilities on the charts. past prices = past history=past events rear view mirror, the market is always in the now, yet although unpredictable not random.

apply this optical illusions to your chart reads, for every time you are convinced it must come down it CAN go further up, and when you think it is ranging it can break range, when you think it must go up, it CAN come down.

adapting to this and pre planing for this key




can you find the "hidden tiger" in the picture?








the point of this POST IS, ARE YOU SEEING OPTICAL ILLUSIONS in your charts?
how prepared are you if you are?

make the spinning lady spin clockwise and counter clockwise, if you cannot. then how can you see your charts both ways?


are you jumping into a bottomless elevator? is there a floor in your elevator? how deep? what if there isnt?

the tiger is the black swan event, there is the obvious tiger standing in front of you, but where is the hidden tiger?

Excellent

what excellent and well put words you wrote they are my sentiment entirely like i said a while before we know which direction a trend is going but many traders will still get wiped out that is probably why my bestest trading method is to trade NOW TIME irrespective of the trend and it works for me. and yes i will trade using my resistance/support rsi and 50 ema but it gets time consuming lol. As you know i do trade live no leverage etc and i still have documents from my early days of demo account and i actually made a few million pounds but its easy to do it on demo, nice words well said. happy trading happy days

RedLion

Thanks for your vouch. I am touched. Still a lot to learn.

mla

Hey mla. I guess it's Saturday morning for you. Have you gone for your run yet?
We all had a great week.
Cheers and happy weekend
PT

Just come back, I would not call it a run, lets say fast walking, it is a bit sticky out there this Saturday morning but I am looking forward for an interesting weekend. I wish you all a glorious one.

Your mate.
mla