View Single Post
El Gallo
Formerly “MumboJumbo”
 
Join Date: Dec 2009
 
2015-12-22, 10:35

I trade through Wells Fargo and have my brokerage account with them. I'm not sure of the criteria they use to establish such perks but I get 100 free trades a year with them which is more than enough for me.

I started trading by reading at least half a dozen books on the topic and finding the 60-75% I agreed with across all the books.

That said the market itself doesn't respond to mechanisms like most people think and there are always actions out there you can't find enough time to read about or discover. Plus the government in the United States has so distorted the economy that it is hard to truly feel safe with your choices. Then there high frequency trading and even more modern factors to consider.

I've done pretty well after initially taking some bad lumps. There are just way too many companies to follow so sometimes I invest in companies I like that I know will be around for quite a while when something has caused their stock to take a hit. For example I tossed some money into McDonalds after their CEO resigned. Sometimes I look into a specific area of the economy I think might be getting ready to get hot or sink. I've not gotten sophisticated enough to deal with options yet and from my understanding that is where some real money can be made. Also be aware that your account can be labeled with a day trader status if you jump in or out of a stock too quickly.

Just be aware that when you grab your profits, you'll probably never feel great. Part of being decent at this is about locking in gains and limiting losses. Gains aren't gains until you take them. Part of taking them often means selling before a peak. How do you know when the peak is?

Well you don't. That is why you have to establish a number for yourself and just stick with it. When you don't, you get whacked. Also learn to use stop/losses and stick with your plan there. When you don't, you get whacked.

There's always more gain to grab. There's always more to lose. You'll have wonderful stories of what could have been if only you hadn't stuck to your plan. Example I was stopped out of Apple at $43 a share after buying at $48 a share. This was before Apple went up to several hundred dollars and then split. However other buys didn't do that and the capital was preserved to invest another day. (Still made $1500 this year on Apple on a short buy if it makes anyone feel any better.)

While starting your real portfolio, I might recommend also starting a "fantasy" portfolio much like how people play fantasy sports. Then you can try out some of your thoughts with pretend money before you do the same with your real money.
  quote