Please Tell Me The Biggest Problems Newcomers Have When First Starting Trading?

Discussion in 'Forum information and help' started by johncBT, May 27, 2013.

  1. johncBT

    johncBT New Member

    Hi Guy's

    I am putting together a beginners manual on how to get started in the online trading industry, I want the manual
    to address the real problems new traders have when trying to break into profit. All contributors of real genuine
    issues mentioned in the manual will receive a copy as a thank you!

    Looking forward to
     
  2. meinkiev

    meinkiev New Member

    Hello John,
    I am a beginner, but I want to ask someone else to trade on my behalf. I have tracked their progress on a Demo account and all seems reasonable with their returns. I need to know what sort of payment systems or percentages is normal for this activity? I actually have two people who want to trade for me, one does not seem to have a great experience, but is doing quite well (only trades one index), the other is an experienced trader with a good system.
    the experienced trader suggested he wanted 20% if he trades stocks, and 50% if he trades futures. The futures trading percentage sounds over the top? What can you tell me? And for options he said another figure would apply, but did not state it? Any help appreciated? They would trade for me but would not have permission to move money out of my account, and I would pay them separately.
     
  3. Rubina

    Rubina New Member

    Hi,
    I think, the biggest problem a newcomer face is the fear of losing money. It is very difficult for them to take proper decision whether they trade in any type of market.
    Therefore, it is very necessary to start trading with proper planning and prior knowledge of the field.
     
  4. SwingKing22

    SwingKing22 Member weekly contest winner

    I don't know if this would count but in my case, starting with enough equity is a problem and also not understanding trends and charts completely.
     
  5. Deathdealers747

    Deathdealers747 Member weekly contest winner

    Well, for me, it's understanding the predictability of the stock market and "seeing" / understanding how the market works.

    On a game, when using a Trading Post or Auction House, the predictability is easy and solid, followed by logical reasoning. But when viewing and predicting the stock market, its much more difficult to analyze and properly assess the situation at-hand. Then, there's also people who rig the Penny Stock market in their favor, which throws logical predictions out the window.
     
  6. wardtom084

    wardtom084 Member

    Money, with a small amount to invest you must go for the long haul. After putting in year after year and having good returns only then are you able to work a 10 or 20 cent per share gain and make any money at it.
     
  7. Deathdealers747

    Deathdealers747 Member weekly contest winner

    I'd like to clarify a little bit more with Wardtom here, because starting out you only have so much money to deal with at any given time. So, for me, for example, I can currently only use 900 US Dollars -- this means that instead of purchasing 4-5 stocks at a time, I can only purchase one stock at a time and see if my prediction pans out.

    Because everyone knows that the higher the money invested in the stock, the higher the gain can be from the percentage increase/decrease.

    Plus, having so little money makes things a bit more risky, in that if you predict one stock wrong, then since that is your only stock, another stock cannot be bought to compensate you, unless you take the loss (thus, making smaller gains with the next stock).

    But, there are always lovely and helpful people out there, such as, Blaine Tarr, to name one. He's helped me out a lot and I thank him very much for it!
     
  8. SwingKing22

    SwingKing22 Member weekly contest winner

    This sums up what I meant perfectly. Thanks to the many great members here willing to help too.
     
  9. dh3607

    dh3607 Member

    I don't really believe this to be true though, there's a few things you can do to mitigate this issue. For instance, with that 900, you could buy 2 shares of amzn a week ago or so, and now, at 400 per share, you'd have made about 20 bucks, after the sales commission (I excluded that from the opening trade, because you would have enough cash to cover it to begin with)

    or:

    you could've bought MTOR for 80 shares (to get a similar off the top of my head price comparison to amzn) and made ~140. Now, the key here is that you're spending approximately the same amount of money (and less than you're 900 total), and putting that entire chunk into one stock, but you could EASILY split youe MTOR investment in half, and gotten a second, similarly priced stock to hedge your risk, and still gotten a better profit than you did off of amzn. and if you buy just 1 share of amazon, at the current price, there's no point in selling, because you'd be losing money on the commission.
     
  10. Blaine Tarr

    Blaine Tarr forum leader won penny contest 24x won weekly contest 20x

    You make a great point. I think this is what deathdealer was getting at, he just failed to mention the lower priced stock aspect. I've been helping him some in PM's on finding and seeing the predictable moves for small caps. His practice account is on the right track now. Only a matter of time before he is capable of trading winners for real.
     
  11. aahepp

    aahepp Member won penny contest 25x won weekly contest 18x

    Another thing I would like to add is the re-use of profits. Nothing like giving back money you have won. Each time I close out a position for profits, those profits are moved out of the account and into an interest bearing account to help make money on your money cause at some point you will need to pay taxes on that.
    I have seen new traders have a few winning trades which increases their account. They then go into another position using starting capital as well as profits from the previous trades. That trade turns out to be a loss, so you just gave back the profits you had made.
    If your broker allows with no or minimal fees to take at a portion (at least 40%) of your profits out of the account and place into an account the will collect interest. This is a two fold solution. #1 you won't give back money you already won. #2 You are withholding the money to pay for the taxes that has resulted from those profits. Nothing like year end getting a big ugly tax bill from your Federal and state agencies.
     
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