Stock Market - Why Most Traders Fail |
- Why Most Traders Fail
- What stocks are you looking at this weekend?
- What is an good education for going into trading?
- Investment Thesis (short term)
- How To Do Good Research
- How do you protect against market downturn?
- Help me get into trading .
| Posted: 24 Mar 2019 09:53 AM PDT These are my thoughts and ramblings on why most traders fail to be successful in the market. 1. Holding for Unreasonable Profits 2. Get Rich Quick 3. Lack of Knowledge & Education Holding for Unreasonable Profits We see so much money flow in and out of the market and our accounts that the profits traders want to take are far greater than what they should be taking. This is especially true in the world of Options when people are up 70-100% on a single trade and continue to hold like it's nothing. We should be steadily taking profits out of the market or sliding it into safer investments for the long hold. Compounding this money is how people become wealthy. Don't let yourself get bamboozled into holding out for 100% gainers. Get Rich Quick People want shit loads of profit in a short amount of time but trading stocks shouldn't be that sexy. In-fact the market should be boring with slow and steady growth made by calculated choices instead of hopping in and out of the next meme stock looking to triple or quadruple the original investment. The rich get richer because they are the smart money taking the dumb money. Most traders fail because they make a mistake. On the other end of that mistake is someone who was patiently waiting for that mistake to happen and then they reap the benefits and rewards. Don't let your money get taken! #LiamNeeson #Ihaveaspecialsetofskills Lack of Knowledge & Education Trading stocks has become readily available to more and more people through apps like Robinhood and Stocktwits. On the surface this is great because we are encouraging more and more people to think about investing in their future. The problem is 90% of these people don't know what they're doing. They either follow the guy who's throwing up screenshots of epic gains or buying into the "I'm the most successful real money options trader on the planet," guy stepping off "his" private jet. Looking at you Jeff! I've seen so many people blow up their accounts on these junky penny stocks holding out for that biopharmaceutical phase 3 trial approval. Or how about every trader who purchased HMNY at $30 bucks because MoviePass was going to revolutionize the industry. Doing extensive research and looking for the right opportunities instead of following the sheep can and will make you a better trader - even if you lose on the trade. We learn better when it's our own mistake instead of suffering for someone else's mistake. So, lock down your profit, stop dreaming about the big overnight winners and ignore the hype. Doing these three things alone will make you a more successful trader. I promise. Good luck out there! @theinvestornaut [link] [comments]  | ||
| What stocks are you looking at this weekend? Posted: 24 Mar 2019 04:23 AM PDT
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| What is an good education for going into trading? Posted: 24 Mar 2019 09:06 AM PDT | ||
| Investment Thesis (short term) Posted: 24 Mar 2019 11:50 AM PDT In this post I will outline some thoughts on my personal investment plan for the next few years. Please give your opinion on your own plans and critique mine. First off, let me say that I believe there will be a recession in the next 1-3 years. There are many reasons to think this and I won't be going into them here because I want to focus on what to do if this is the case. The obvious play is to buy puts, the question becomes when to buy and when to sell. The first major metric I am looking at is the yield curve, which just inverted. If it stays like this for three months, it will signal a recession. Check out this website for great graphs on this subject https://www.gurufocus.com/yield_curve.php By this logic, I should wait as the yield curve inversion generally predates a recession by 8-12 months. A recession is generally not announced by the NBER until around 8 months after it started so if they've announced a recession, I've already missed my opportunity. In fact, the goal would be to sell shortly after the NBER announces a recession. https://www.nber.org/cycles.html Add to this that the stock market typically peaks around 3 months before the beginning of a recession, so I should be buying my puts in 5-9 months by this metric. Another thing to look at is this survey https://www.fuqua.duke.edu/duke-fuqua-insights/cfo-survey-december-2018 It states that 48.6% of U.S. CFO's believe that the nation's economy will be in recession by the end of 2019 and that 82% believe that a recession will have begun by the end of 2020. This is one of those things were predicting a recession could actually cause one because if CFO's truly believe a recession is imminent, they will withhold investments thus causing the economy to slow and starting to prove their recession thesis. Complicating this is the fact that the rest of the world is in a far worse position then the United States. China has been having trouble for about a year and a half now, and I never know how much to trust their official numbers. Europe has also been weak, and Brexit combined with a weak China could easily push it into a recession much sooner than the United States. So, what's the play. The current plan calls for selling off any stock which hits a new peak within the next 12 months, any that don't reach new heights will be carried through the downturn. This also allows me to continue to reap the benefits of this economy and hedge in case I am incorrect about the downturn. The next step is to buy puts in 5 – 9 months expiring in mid-2021. There are two fears in this situation. One is that the stock market has already peaked and that I should be buying my puts now. Most of the other indicators are pointing downwards and perhaps the rest of the world's weakness will hurry an American recession, making the Yield Curve a shorter indicator than in the past. The second worry is that even with all the potential faults in the economy nothing catastrophic happens and we avoid a recession for the next 2-3 years in which case my puts could expire worthless. What are your thoughts on the current conditions, and what are your plans for the next few years? [link] [comments]  | ||
| Posted: 24 Mar 2019 03:08 PM PDT When learning about a company I think it's really useful to put the company in context by understanding the industry, competitors, who's ahead and who's behind and why, who's doing what, amongst a plethora of other things. So this is why I created a section on my blog called "Insights". I'll include the link in the comments section. There I have: 1) A list of articles about certain business topics (incomplete) 2) Sources of information provided by companies/ government 3) Interesting blogs/websites/funds. Wether they post it's company specific information or general information. 4) Trade journals/publications (very important) Let me know of other sources of information you are aware of. Any industry. I think compiling this all into one place could not only be useful for me but for many other people too. [link] [comments]  | ||
| How do you protect against market downturn? Posted: 24 Mar 2019 10:22 AM PDT I began investing the market in about 2013 so I've never seen a legitimate recession. Since one is likely on the horizon (though I doubt anywhere as severe as 2007) with the yield curve inverse it got me thinking of ways to protect myself. I have a few ideas but want to hear from people with experience. First, move money into a high dividend ETF which is less exposed to market volatility and still make at least a little money. Second, move money into a burgeoning industry like marijuana where growth of the industry is less likely to be affected versus those that are mature. Third, move money into a market short ETF like $SBB that shorts small cap stocks that are the first to fall due to lack of capital? [link] [comments]  | ||
| Posted: 24 Mar 2019 09:48 AM PDT I am 16 and willing to start trading , my dad trades already but he is very bad at explaining . I would appreciate if you would tell me how or where you started so i can start my own path . Sending a video tutorial link that you consider useful would be nice . Thank you in advance ! [link] [comments]  |
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