Critical reading here for "beginners"
http://www.travismorien.com/FAQ/trading/futradersuccess.htm
Traders and pretender traders looking to make their money grow should read the webpage in full and learn from empirical studies done in very big markets.
My advice for 2010 if you are interested in the stock market:
Invest in a few solid companies that are likely to be doing decent business over the next decade, or two.
Here comes the "Don't"
Don't trade if trading is not your fulltime job and you are not dedicated to it.
Traders and pretender traders looking to make their money grow should read the webpage in full and learn ...
"Traders hate that, they much prefer to sell stocks at a profit, which makes them feel like a winner, as a result traders systematically weeded out good stocks from their portfolios and retained poor ones"
Due to the cost factor 55% of traders are losers in UAE stock markets.
Cost factor is more vulnerable in FOREX trading for the low price range more volume has to do and more expenses to pay.
I would suggest swing trading rather than day trading to minimise cost factor effects. I have been lucky to get many swing bottoms but unlucky to miss many swing peaks.
During a correction be invested in cash and wait for good volumes at more than attractive low price is a patient game to pick the swing bottom. Once you got into the bottom hold for a peak that good volumes done at more than attractive price is the best exit policy. These are the extreme steps that a very few can achieve otherwise all are big winners. _________________ Take your own decision; and you decide your destiny
The link I posted was meant to illuminate the futility of trading over any time frame, as opposed to the simple strategy of buying and holding fundamentally sound stocks over a time frame that would be abhorrent to most novices in the market.
Yet you write about cost factorof trading in the UAE and then compare the same, whatever you mean by that, in forex.
I am afraid I don't understand what you are trying to say, as usual. If you are veering offtopic, as usual, and trying to say that forex trading is somehow more costly to frequent traders, then you are wrong. I think from your previous comments you think that because currency pairs
You think that because currency pairs exhibit a narrower trading range, they are cost prohibitive to frequent traders, while you totally ignore the magnification of profits offered by typical leverage in forex.
In any case the link was about the success rate of traders in several markets not just stock markets. You could criticise forex in another post elsewhere, like the currency forum, although I do not see why anyone who wants to make money shorterm exploiting fluctuating financial instruments should be blindly partial to one particular asset class like stocks, which I beleive are riskier inherently than forex. Good luck with you trading.
I am afraid I don't understand what you are trying to say, as usual. If you are veering offtopic, as ...
COST FACTOR
You better read the link you posted at the beginning of the topic, then you will note that I'm still within the topic
I read that link and found the cost factor is a major obstacle to loosing the trades in frequent trades and leveraged trades are more prone to losses than winning by the studies in the article due to huge volume done more frequently. And you know better than me that FOREX trading is more riskier for COST FACTOR and luring leverage esp. for bigners.
More importantly the link of the article is discussing more of trading commodities.
Good luck in your forex/commodities trading. _________________ Take your own decision; and you decide your destiny
I am afraid I don't understand what you are trying to say, as usual. If you are veering offtopic, as usual, and trying to say that forex trading is somehow more costly to frequent traders, then you are wrong
By saying "as usual" in reference to T going off topic, "you are wrong", to use your own words. Mr T rarely goes off topic as far as I can tell. By saying "as usual" in reference to your lack of understanding, I'm not sure whether you are trying to imply that you usually have difficulty understanding Mr T because his explanations are poor, or because your comprehension is generally weak. If the former, then it strikes me as unnecessarily provocative (and wrong). If the latter, then I am surprised since you come across as someone who is reasonably articulate and intelligent.
If your posts are intended to inform and discuss, then please try and refrain from baiting other forum members. If posting information is secondary, and your primary objective is to aggravate other members, then go away and join one of the other blogs or forums where your style is more likely to be appreciated.
By the way, for what it's worth, I found the link you posted made for very interesting reading. _________________ UAE IPO list | posting guidelines
I don’t want to take any sides or make any personal comments; however I cannot resist myself to express my opinion here.
To understand Fayesloan’s posts, one need to have an in-depth understanding of the market and trader’s psychology. Anybody who has not read beyond the business pages of gulf news or khaleej times or business 24/7; would find it very difficult to comprehend Fayesloan’s posts.
Members post their expectation, greed, fear and other emotional factors. Some posts to share knowledge. Some even posts articles/comments from other sites with “Find (other stock market) and Replace (DFM / Emaar); to appear as market guru; but in any case, I think, nobody posts/comments to aggravate any member.
Sharewadi, at many posts you have expressed your inability to understand or comment on technical analysis. I appreciate your modesty and to that; I want to make a humble suggestion to you. If a member punches in some technical words and incomprehensible mumbo-jumbos with %s and price/volume figures and sounds better than Bloomberg analysts, please don’t consider him the ultimate authority. He might be useful to you to keep the forum rolling or increasing thread counts; but practically no use to members visiting here. For example, you have 8 pages for a thread called 'Emaar Trend Analysis' and thats a stock which moved from 4.00 to 3.86 in last quarter and in a market where shorting is not legally permitted.
I, again, humbly request you to encourage Fayesloan to share his insight, because those are more useful to traders in long-run. On a lighter note, we all know the short term prospects of DFM/ADX.
however I cannot resist myself to express my opinion here
Your opinions about the markets are always welcome .
There have been several topics which turned into a bit of a mudslinging contest between members. Opinions about the markets and what other members have posted are welcome. Opinions about members should be avoided.
Suhail wrote:
If a member punches in some technical words and incomprehensible mumbo-jumbos ... please don’t consider him the ultimate authority.
Good advice but let's stick to the topic title here .
Suhail wrote:
I, again, humbly request you to encourage Fayesloan to share his insight
Fayesloan's insights are welcomed and encouraged, as are everyone else's. There is a lengthy explanation in the forum guidelines about making comments of a personal nature, and what is an appropriate style to use when posting in this forum.
I admit my post might have appeared a little blunt but I get like that when I have to repeat myself.
On that note, I have deleted the most recent comment by another member. It refers to an episode in the history of DST that has been and gone and I don't see how it serves any useful purpose in bringing it up again. As for the past connection, don't worry, I am aware of it and if the "new" member chooses to go down the same road, then the outcome will be the same.
Topic locked to avoid further posts like the one I deleted. And a personal appeal to that member (again ): please don't rise to the bait. Send me a PM if you want to get something off your chest. It would be a huge loss for the forum if you ended up being deactivated. _________________ UAE IPO list | posting guidelines
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum
Disclaimer: Investing in stocks is risky, you can lose some or all of your money and/or other assets. Anything you read on this site should be regarded as the opinion of the author only and is not to be taken as advice to buy, sell, or hold stocks and/or any other investments. Seek professional advice and do your due diligence before making investment decisions. In particular, do not assume anything you read on this site is correct or accurate. You should accept that only you can be responsible for any investing decisions you make.
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): please don't rise to the bait. Send me a PM if you want to get something off your chest. It would be a huge loss for the forum if you ended up being deactivated.