Trading General - #2 - Dead Thread Edition

[Anonymous No.749896]

So. I see there are more and more of various threads requesting help or information about trading in general, be it stocks, forex, indices or even options. And since you fat fucks are lazy to use internet and read something, let me put down the mandatory link to begin.

>Economic Calendar
www.forexfactory.com/calendar.php
http://www.investing.com/economic-calendar/

>How to Trade - MUST READ - Comprehensive Guide list for Beginners - don't be fucking lazy and read this shit.
www.behindequity.com/how-to-trade/

>Money Management
www.behindequity.com/trading/money-management/

>Risk Reward Ratio
http://www.behindequity.com/trading/risk-reward-ratio/

>Example of Trading System and Baby Steps at Portfolio
http://www.behindequity.com/trading/business-called-trading-part-7-think-big/

>More of the very good resources regarding trading.
http://www.investopedia.com/
https://www.bogleheads.org/

Mine Stats so far
>inb4 shit amount
Literall europoor here

Gross Profit: 34 112.31$
Gross Loss: 25 998.27$
Profit Trades (% of total): 202 (58.63%)

[Anonymous No.749897]

>>749896

>Few Advices
When trading, never ever fucking read discussions about ongoing trades of other people on discussion boards. Every single shitter thinks that he can predict the market or knows what happen, ironically, most of them are trading on demo accounts. These are just faggots that like to circlejerk and give themselves fake sense of importance. Also, It will cloud your judgement and increase the amounts of doubts which in turn will gimp your trading.
There isn't a holy grail trading strategy, or guaranteed movement. Everyone who claims otherwise is a scammer. Do not try to oversmart the market, every movement is out of your influence and you will NEVER to predict the future movement be with certainty. Only thing that is in your hands Is your Risk and Money management, Trading is ONLY about probability and your ability to use that to your advantage. Example, based on the Price Action and Movement Average there is a high probability, that the market will move this way, that means, that if it's on acceptable terms, I will enter the trade with Risk Reward Ratio of 2:1.

[Anonymous No.749900]

>>749896
>>749897

F.A.Q
>I am new, what broker should I pick.
How about you first read about what the trading fucking is. You are not Gordon Gekko, nor any special snowflakes that can expect mad 1000% gains on your first month of trading. For now, you actually need to decide whether you can handle the lifestyle.

>What's so different about the Trader's Lifestyle
You must be disciplined and self-conscious, If you are fat as fuck, you've already failed since you do not posses the necessary discipline to even lose weight. The trading is psychically demanding task which requires great deal of self denial and countless hours of hard work. If you think you can handle it, let's see what will happen when you will flush half of your hard earned money in a matter of minutes because you are a shitter that trades without stop-loss and based on feelings.

>I am a NEET, have about 120$ and want to make 1200$ by the end of the week.
Into the trash.

>B-b-but I can trade micro lots on forex with 50$ and become rich.
No you cant, it's a pure waste of time, it gives you no real grasp of how complex is the money management and nothing about the risks involved. You do not care whether you lose the 50$ as much as you care about losing 5000$. Havent heard about millionaire that started on micro lots...

>I doubled my Oanda Demo Account in a week, sitting now at 58 000$
Into the trash, you are a shitter and unless you acknowledge that there is a very hard hit ahead of your regarding trading, potential "forex is a scam" shitposter, baby phase.
>How much money is the bare mnimimumto start?
I'd say about 5000$ and even then you can expect that you will hardly break even when trading first.

[Anonymous No.749904]

>>749896
>>749897
>>749900

>How long do you trade, what do you trade and what are your returns.
I am trading for more than four years with some pauses in order to get a rest from some shitty decisions. Started my first account with 2000$ undercapitalised, made about 500$, bought some shit and then lost 1000$. Came out with 1000$ in my hands. Decided to take a break, make more money and reevaluate my steps. Started trading second time with 5000$. Shit was cash, Made about 10 000$ more out of that, got greedy as fuck and made one huge trade, was so greedy, that i refused to close the trade with about 1200$ short term profit. Well, lost shittons, 12 000$ to be precise. Huge confidence hit, 6 months pause. Started trading again, 3rd time with 5000$ this time taking it slow, making just enough to enjoy above average lifestyle in yurop and all going good and well, all of those fails were necessary in order to become sucessfull.

I think I summed up all the important stuff, If you have more questions, ask here will answer depending on time. Feel free to expand the list. And Lets make this a running general.

Mine Stats so far
>inb4 shit amount
Literal europoor here

Gross Profit: 34 112.31$
Gross Loss: 25 998.27$
Profit Trades (% of total): 202 (58.63%)

[Anonymous No.749945]

Anyone else just doing this as a hobby? I am still learning wtf is going on but it's been fun so far. Put $2000 in an account and decided that I was ok with losing that and then invested it all in Sony (SNE) 2 years ago.

My reasoning was that with the launch of their last truly dominant console lunch (PS2) their stock price went up from about 30 bucks to 150. I expected the PS4 to do super well. Of course I realize that Sony is a lot bigger than it's entertainment division so this is probably faulty logic on my part.

Anyway I lucked out and for some reason Sony went up in early 2015 and now I have almost $3000. It's a lot of fun and I have just enough skin in the game to make it feel real. Do I have dreams of making it big? Sure, who doesn't. But for now I'm enjoying how much more I pay attention to the news in general and it gives me something to do since I enjoy research. Not really sure what to invest in yet since I have so little money in my account, just $25 shy of 3k. I feel like the only way for me to make enough money to keep this fun is to yolo everything into a single stock...

Gross Profit: 34 $875$
Gross Loss: 25 0$
Profit Trades (% of total): 1 (50.01%)

[Anonymous No.749956]

>>749945

Although this is Trading general and you are talking about investing. I can still advise you on one thing you've said and it's yoloing a single stock. Never, ever YOLO in stock markets more often than not it will fuck you up.

Read here about diversification and money management here
>http://www.behindequity.com/trading/money-management/
Particularly MODEL NO. 2 – EQUAL UNITS MODEL (EUM)

Hope that helps a bit. Take care man. Also, will answer questions until I am at home for a few days.

[Anonymous No.749969]

I bought oil (UWTI) when crude was $48 and falling. Got 5000 shares at $2.5; I was down about $2k a week later, the most down I have been after a year of trading. I wash saled 3/5 of my shares (bought back 15 cents below where I sold) to lower my average. Sure enough, oil hit $42 and bounced back every since. As soon as I had broke even, I closed. That night Saudi Arabia bombs Yemen, and oil price explodes. The feels.

Also, get Robinhood. Free trading is best.

[Anonymous No.749974]

>>749969
So if you're holding an American oil drilling company, then you're literally hoping for war in the middle east right? Kind of like my job, I work for an American defense contractor with mainly contracts with DoD and the Navy, continuous but minor wars in the middle east literally keep me employed.

[Anonymous No.749982]

>>749974
Pretty much. I banked off the ebola hype, buying into stocks like TKMR, APT, IBIO. Same thing hoping for more news, as bad as that sounds.

UWTI isn't a company. It's a 3x ETN tracking crude oil. I also watch UGAZ 3x nat gas. I was trading TVIX 3x volatility last year, but it has decayed beyond profitable trading.

[Anonymous No.750004]

>>749956
Maybe I don't understand because I am reading your link

"MODEL NO.1 – UNITS PER FIXED AMOUNT OF MONEY (UPFA)

The first model tells us how many positions we can open for each X dollars on our account. If you open an account with 5,000 $ and decide to use UPFA model, then you first need to determine how many contracts you will trade with this account. Since this is relatively small amount then let’s say, that we will trade only one contract no matter the market (if your margin allows you to enter at all) with according stop-loss. This means that you will also trade only one single market at a time. However, if you are successful, you will very soon transform those 5,000 $ into 10,000 $. And since you have determined at the beginning of trading that you will trade 1 contract for each 5,000 $ then you will logically begin to trade with two contracts. Be it in a given market or each one on a different. Your trading positions will increase by one with each 5,000 $ you will make"

Is this saying that it's ok given that you've already decided "this is how much I will invest in each" or am I completely missing the point? Should I be using the same portfolio management concepts/distribution i would have for a bigger portfoilo even though I just have a small amount?

[Anonymous No.750010]

>>749982
So if it's not a stock, where does the money you win come from? The people who lost out?

[Anonymous No.750017]

>>750004

Well don't understand your question but it all boils down to the margins that will be held when entering the trade. So like there is mentioned, if you entered with 5000$ you will be able to trade roughly 1 contract of SP500 in Futures market in order to stay within reasonable 3-5% risk of your account for a single Stop Loss.

It's not that you've decided but more of what your money allows you to do. If you want to stay afloat you have to minimize the risks and use a money management or you can just either go and blow ur whole account on a single trade.

Also, this is just very basic money management guide everything can be tweaked and personalized but it's generaly very good starting point.

[Anonymous No.750018]

>>750010
They are issued by a creditor at inception as an IOU when maturation hits. They are not long term investment vehicles. It says in the prospectus for them that they are meant for daytrading.

http://www.investopedia.com/terms/e/etn.asp

http://app.velocitysharesetns.com/files/prospectus/PRICING_SUPPLEMENT_No__VLS_ETN-3_A21_long_form.PDF

>The ETNs are intended to be daily trading tools for sophisticated investors to manage daily trading risks. They are designed to achieve their
stated investment objectives on a daily basis, but their performance over different periods of time can differ significantly from their stated daily
objectives. The ETNs are riskier than securities that have intermediate or long-term investment objectives, and may not be suitable for
investors who plan to hold them for a period other than one day. Accordingly, the ETNs should be purchased only by knowledgeable investors
who understand the potential consequences of investing in the applicable Index (as defined below) and of seeking daily compounding leveraged
long or leveraged inverse investment results, as applicable. Investors should actively and frequently monitor their investments in the ETNs,
even intra-day. It is possible that you will suffer significant losses in the ETNs even if the long-term performance of the applicable Index is positive,
in the case of the Leveraged Long ETNs, or negative, in the case of the Leveraged Inverse ETNs.

The money is coming from someone else who puts in a request to buy the shares at that price. A lot of people that trade them don't fully understand what they are. They look at TVIX all-time and think "This could hit $89 again!" without taking into consideration the effect of contango and backwardation -- what causes the decay of the ETN price.

My advice would be to tread lightly with them. They are very risky and if you do not have much capital or stomach for volatility, stick to stocks,etfs, and mutual funds.

[Anonymous No.750020]

>>750017
Next time SPY falls down to $200-$205 region, I will buy SP500 emini future contract. Paper money traded one this week for +$3k

[Anonymous No.750735]

Why is this general deader than dead.