“You need to start trading. It doesn’t matter if you know what you’re doing or not, you’ll figure it out later.”
No wonder that people lost their money when they get such advices!
Which, in my opinion, is really bad. First of all, there’s no logic - if all you need is just start, why so many do not succed?
But most important, it’s like telling the high school senior, “it doesn’t matter if you know what you’re doing or not, just start doing surgeries, you’ll figure it out later”. What I want to say - without adequate preparation, you will be no more than a capital donor in the market. Trading is a serious job. You need knowledge, skill, and strong psyche. It doesn’t come from the air.
If you want to know how serious and who you have on the other side of the market, check job offers from biggest brokers and funds. Having PhD and good programing skills is no surprising, it’s become a standard - these are your opponents. That’s the “other side”. Do you really think, you have a chance with them with no preparation?
I’ve heard this. I’ll agree and disagree with you. You do need a plan and need to understand the basics to get started (not profitable of course). But I can see how certain people may never get started even with a demo account because there’s just so much to learn.
The saying analysis paralysis comes to mind. You know what I mean?
Plus “later” could definitely turn into years…
“You need to start trading. It doesn’t matter if you know what you’re doing or not, you’ll figure it out in many years.”
Ha!
Worst advice? “Just use RSI. Once it hits 70, sell, once it hits 30 buy!” No explanation that price could sit above and below forever in a range.
"Its never wrong to take a profit" encouraging people to cut profitable trades prematurely.
Nothing destroys long term consistency more than cutting profits early. It destroys the entire basis on which a strategy’s performance is based. It can even destroy an account completely.
The OP poses an interesting question. Personally I think there are as many different trading styles as there are traders. So as long as the advice is sincere and well-meant and no-ones trying to scam anyone, then I think any advice goes. One man’s meat is another man’s poison and if you have a bizzare trading strategy but it works for you then it’s OK to pass it on.
I agree with this. RSI is very unreliable when used on its own. If I had to use RSI and norhing else, then I would actually buy when it hits 70 and sell at 30!!!
It probably doesn’t but it depends on the person .There will be people on here who transfer their demo practice exactly the same,as when they trade real.But I reckon more don’t
Here are some of the most common pieces of bad advice that you should be wary of:
You need to use leverage to make any money.
Leverage can help you make more money, but it can also lead to bigger losses. Use it wisely and don’t let it control your trading.
You need to take big risks to make any money.
Big risks can lead to big rewards, but they can also lead to big losses. Be strategic about the risks you take and don’t let your emotions control your trading.
You need to trade constantly to be successful.
Successful traders know when to trade and when to stay out of the market. Constantly trading will only lead to burnout and big losses.
If you’re getting advice that sounds like any of the above, be wary. These are all common pieces of bad advice that can lead to big losses. Do your own research, be strategic, and don’t let your emotions control your trading.
Can’t think of any direct advice I have been given but I hate seeing people saying bs like “cut your losers short and let your winners run”. As far as I’m concerned you may as well say buy at the bottom and get out at the top. Losing trades can become winners and winning trades can become losers. If we knew which way they were going to keep going we’d all be filthy rich!
I totally agree with you, normally the demo account is used by experienced traders to test new strategies and indicators and not like many newbies are told
Sorry SovoS but I have to disagree with you. Taking a profit, even a small one, can help a traders mindset. In time, and with experience he/she may develop the patience necessary to hold on to trades longer and gain more profits.
It really depends on the stage of this business that trader is at.
Seeing your trade go into profit is mentally/ emotionally rewarding to a newbie, and at the same time brings with it fear and greed, so to me, its really up to the individual and his/her stress threshold.
Our friend who introduced me to trading FX showed me 5M charts. Took me way too long to figure out that I should be trading longer timeframes (now looking at 1D). But TBT, she was making money trading, and we still consider her a friend.
No need to be sorry - this is what forums are for!!
I understand what you are saying and naturally it is always a “feel good” factor to take a profit - at any time.
However, the problem with this is that it only looks at the single winning trade. The euphoria of taking a couple of quick small profits is more than wiped out when the next trade hits one’s stop and instantly eliminates all those hard won profits and takes the trader back to square one - or even worse. I am sure we have all experienced this at some time…
My point is that is not good to encourage cutting profits off before they reach the target because, by definition, the R:R (if one uses this) of the whole strategy is based on the number x size of profits exceeding the number x size of losses.
Downgrade your profits by cutting them short will no longer cover the anticipated losses unless the stoplosses are narrowed - which will probably lead to more stop-outs.
I know a win is a thrill, but this is a business and we need to always focus on the bigger picture otherwise we will never reach consistency.
That 's only my view of course and anyone and everyone is entitled to think differently!
This is one of the best pieces of advice you can get. Remember also, that SL can be moved during position management - the rules should be specified in the system you use.
