my top 3 mistakes ive learned. 1. Dont trade the second the market opens, give it a bit to set its course. 2. Never trade against the trend. 3. Be patient
Complete noob here but I’ve been making fair returns on the CFD side by trading against the trend. I generally pick anything where I can compare the months graph to the short term and it’s almost always right! Short term looks like it’s going up but I can see from the long term it will almost defo go down.
Emotions and not putting it all on the line is key. Don't be greedy and try to be like these guys that risk their entire net worth and happen to get lucky and get rich, you won't be like them. You think you will but you wont. Most of them selling that dream are full of shit anyways.
@Alex 163 you guys are so naive...do your research don't just settle on the first strategy that seems to work Lesson 101: markets are cyclic so yes yes you can predict what happens next to the right (based upon the last impulse correction combination seen on the left). Elliot Wave trading ( macro chart patterns) does this to some limited degree. Learn to trade using Wave Trading ( micro chart patterns ) which is a superset theory (includes EW) Absolutely allows you to predict next chart trend movement. With common sense determine when best entry exit is to profit consistently Checkout channel WE TRADE WAVES !!
I'm no expert on trading but I've heard that some stocks get dominated by institutional traders i.e. algorithms that make it very difficult for normal traders to make money. Perhaps finding stocks in play by retail traders would help? Best of luck in your trading journey!
As it's trending up you can set your stop up and up, thus locking in profits. Unless you pick the literal top in the wrong direction (insanely hard to do unless you do so against resistances) you're golden.
Good advice. 90% of my trades turn against me the second I get filled, no matter how low I buy or how high I short. I used to use tight stop losses and buy huge lots and yes, they would take me out or cause me to panic. I had to learn to not be greedy and to buy small lots on each trade. My trading has improved drastically after using the same approach explained in this video. I only make 150.00 to 300.00 a day now on a 55K account, but it is better than losing 1000 to 3000 per day getting stopped out or selling during a panic.
+Ever Clara yeah but he has 55,000 in his account which honestly I think he could do a bit better some get that having less than half of that in their account. I know some could do it having only 10,000 in their account. I mean heck I could probably do that on some weeks (gain around $1,000) having only 8,000 in the account especially when earning calls are hot. Helps a lot also if you have access to pre and after market hours.
I have been practicing on a demo account for a long time now and I can imagine that a big mistake many people make is to not practice first on a demo account.
I typically set my stops by subtracting the ATR * 1.5 from the price. I cut my losses quick and lose most of my trades but I am still profitable though. Because when I do win, it's big. And when I lose, it's small.
Everything you said I knew already, but Ive never heard it so clearly and concisely...will be returning to it to continuously remind me. Hard thing to tame myself...get success and then suddenly break my own rules and fail.
I tried to pick the bottom of a XUA/USD and lost 90% of my equity - lesson was learned.... when it comes to being a trader it pays to be a sheep.... follow the flock, watch the MACD and literally do as the chart is telling you....
I don’t use stop losses on my ETF’s if I’m already down. The reason why is because over time history has shown that the market will always bounce back. Then on high growth risky stocks, I only invest what I would be willing to lose. Now I do use stop limit/loss if I am up in profit to protect my gains.
You threw something in there in less than one sentence that I've wondered for years and never really looked into because I always forget to ask. You said that the oil traded $1.30 or something and then you said that's 130 points. I never realized a point was a cent. That's amazing!!!! I've always heard about the DIA and Nasdaq in reference to points. And the DIA breaching 23,000 points. Now I understand that means it's trading over $230.00 a share!!! Thank you so much. It took less than a second of this clip to explain but it really helps me get my head around this. I wondered if it was percentages or what and now I know. Thank you so much.
A point is a pip and it stays the same. What differs is the profit because of different lot sizes. 5 points can yield $0.50 (micro) or $5 (mini) or $50 (standard)
For stocks, one point equals one dollar. So when you hear that a stock has lost or gained X number of "points," this is the same as saying that the stock has lost or gained X number of dollars. It is important to note here that we are referring strictly to stocks, nothing else. People often refer to indexes, bond prices or currencies being up or down X number of basis points, and basis points are different. One basis point is equal to 1/100th of a percent, so if someone says the dollar is up 50 basis points, this is like saying it is up 0.5%. Source: Investopedia
Great video. I am glad you mentioned setting your SL wider. I was first taught to set your TP at 3 pip and your SL at 3X your TP, which was 9 pip. I would back test the crap out of my strategy with this information and I would lose much of the time and I couldn't figure out why. Then I decided to back test using a larger TP and SL. What I found astonished me. When I would trade with a TP of 3 pip, I would only win about 55% of the time. Then I changed my TP to 6 pip and my SL to 30 pip and people told me I was crazy. I use the same exact strategy and I win 92% of the time now. I noticed the same thing you did, when the markets moving you need to give your trade time to work. Thanks for the video.
I don't fully agree with point 1. trend. for example, currently the ftse100 is on a downward trend, however the 'overall' trend is long. a trader 'going with the trend' will say to him/herself, well the trend is short going down so I'll short it. However there is always going to be more uptick given that the 'overall trend' is long going up. This means that a trader will have better trades buying long on the low dips, knowing that price will rise. If s/he shorts instead and ignores the power of the overall trend then sooner or later the price will move up and not come back down, will take out any stop loss even the widest ones. If you have a big margin and trade long buying on the dips then even further big dips will not wipe you out even without a stop loss. okay you'll have to pay the rent on keeping 1 or more trades open but the profits will far outweigh the fees once the overall trend catches up and recovers from the downturn. also while you're waiting you can carry on trading new positions given enough margin. I am doing this and made 12% profit of my trading fund in 7 trading days. I'd be up even more had I used limit settings and been a bit more patient waiting for price to come down more, not buying too early and selling too early. I'm set to double my trading fund 100% before end of year 2018.
Honestly who run things channel? Thank you so much for taking the time to put together these videos, no one wants to share knowledge with out cost. Thank you a ton for teaching and giving people the opportunity to be successful👌🙏
Good day David, I must admit I have made all three these mistakes when using my own money...when trading with a virtual account I get it right and risk far less for each given trade...but I am battling with trading psychology when trading with my own money, I deviate from my strategy used when trading virtual and my emotions take over - I have caused myself so much frustration - moving my stoploss farther and farther as a market goes against me "hoping" it would turn which i know is stupid and goes against everything i have learnt about the financial markets and trading as a whole...Guess im just reaching out to you as I am normally a very disciplined individual but cant seem to shake off the emotional part of trading with real money - and i really enjoy trading and technical analysis especially. I have thought about getting a mentor for the psychology behind trading as I would not like to stop trading because of this...anyway, my apologies for ranting on about it, I just needed to reach out to someone who has such broad appreciation, calmness & discipline for trading as you have. Keep up the great videos! I will look through your previous videos for one on trading psychology specifically. kind regards, Hendrik Labuschagne
Do you have your own trading plan that you follow, every step of the trade, from place the position to exiting the position? I found this to be very helpful as i also have rules i need to follow and emotion checks on that plan, so whenever i feel like deviating from the plan i go to my trading plan to see what should be the next step. This does help with a lot of discipline involved.
one question: why trade oil? it seems like suicide for no reason. liquidity maybe, but what else, seriously? whatever the market, your stop should be at RZs. if its not, it doesnt really matter, whether you set it tight or wide. with lots of skill, stops that give you 1:10, 1:20 or a lot more RR are totally possible.
And all the time I was thinking why the hell whenever I buy any stock it starts going against me it reverses as soon as I sell it.. so I was doing all these 3 mistakes
I have to say this is one of the better channels out there that covers this stuff. The explanations are always concise and easy to understand. Great content and I'll be sure to send anyone looking for knowledge this way.
Dear David ... Thank-YOU for reminding us again and yes I totally agree on all three . The other problem is that I will pick a bottom or a top . Most of the time I am wrong and the Market goes against me and my call or put is deteriorating. Instead admitting the mistake, I will through more money at it. The trend goes against you and it stock takes to long to turn around and the Warrants with a time decay becomes nothing. I have lost plenty .... Purely on fact that I can not sell, ....... and every day get worse and worse . I do agree that one should spend some time on the product you interested in and get the feel of it. Be careful of noise in the market, wild swings up and down . As Dave was saying, your stop loss is to tight. I hope you all do well, and may God Bless us all with new wisdom and understanding. Janni Roux South Africa.
Holy Crap!! I rarely watch youtube trading videos, but when I do they have been uniformly bad -- often to the point of being funny. I would say this is the ONLY youtube trading video I've ever seen that offers truly sensible and useful advice to beginning traders. I'm shocked, actually.
Thanks for sharing these three tips. I am new & learning. Last night I lost a trade because I put the stop loss too close. I missed the boat & trade closed in 5 minutes. If I didn’t do that mistake I would make good money. Lesson learned from the trade & your video. Once again thanks.
The very last thing I told myself after this last set of trades I made was 'shut it down and walk away.. dont obsess over the trades.' Then I came here to unwind and found this was the first video I watched. I like it!!
3 Most Common Trading Mistakes: 1. think you can beat the index by trading 2. buy anything other then a broad index fund / ETF 3. sell anything (including ETFs) before holding them 10 years
well here is one tip that you left out,, use a trader not everyone can trade binary and secondly use an average broker , most popular brokers are total rip offs
Im very new to this but deceided that i want to at least try it out. I have 2 questions that i hope you or someone els will answer. 1. i have a pair (currency) that i want to trade, and i already know at what point i want to buy and sell, how and where do i do that?? and do i need a "robot" to watch the stock to buy and sell? 2. is there a place on the internet where i can watch different kind of stocks, how much they are going up and how much they are going down without having to create an account aso.
Your video explained all my faults via trading, i need to step up my trading game for real, an expert recommendation would be better after all. Thanks so much david
Hey great video! Very informative, no rambling or fluff! Good audio, good camera angle/screen capture. Good length. Thanks for the video, I subscribed!
Mr. Jones, you are a true blessing to those of us who want to make a living trading on the stock market. Thanks a million times for your upfront input and educating us. Wishing you and the fans more success
I doubled my investment and lost everything including the principle just because i used bigger size and narrow stop loss.Bigger size of stock in intraday is the culprit. U get tense when market start consuming ur profit which u earned, along with the principle and u will be stuck making multiple trade to get back what is urs from the market. Thanks u for the video
how can you explain the holding losses thing. I know this for so long now, but just can t apply this basic, I get in messy hedgings after. I need a mentor like you to change my mind set
Love the video mate brilliant, i actually find it hilarious, my smart watch was going off like crazy and my phone, with the notification that the share value was dropping so i could sell, everyone at work thought i was nuts haha people just don't understand, trading it life....its life
I like that you get right to it. All of the others that I follow on RU-vid will spend up to 5 minutes NOT talking about the title of the video (the subject) that brought you to the channel.
Strong advice that I need every few months. It's rarely about the indicators and the whatnot. They are all using data you see on the screen anyway. It's about managing potential losses and staying alive for as long as possible trying to earn something one trade at a time.
I do the $1000 demo atm, 10 shares per position and when I keep them less than 5 positions I do great, but then I get hung out on the hedges trying to counter a reversal with too many positions on the movement. Learning to cut my losses but also learning to push how far fewer small positions can go out and back in which I have done a few times, market calibrations can help if you are online when London/Tokyo/NewYork etc, open bell rings... A Yearly Map Overlay feature would be nice, particularly for gold & Valentines day, Christmas, etc to detect patterns... Would also be nice if there was an indicator line on the charts for when different markets open and close, would be very helpful.
Just starting out with all of this so many thanks for the videos, please keep them coming. Would be great if you could do a video on exactly how trailing stops are implemented, I have seen the one already on the site in the video tutorials but I am struggling to understand exactly how they are implemented via the trading platform and how to know what the difference in points represents in actual pounds to be sure the stop is not triggered too early so that profits are given the opportunity to accumulate if the market does dip slightly.
Hi, Roberto. Delighted to see you enjoy the videos and find them interesting and useful. As usual, your comment will be taken into consideration. When placing a Trailing Stop order with Trading 212, the distance is measured in the currency in which the instrument is quoted. The price displayed when setting up the order represents the price at which the stop order will be executed.
Thank you very much for your videos. I am a newbie Forex trader. I am doing a course online and use your material to better understand what l am learning. It has been an enormous help so far!
Thanks sp much ,im deffenetly number3 ....i eill work on this,i tought my stops too tight as u said,but really the problem i risk too much,have to downsize..thanks David ,u making me better with evry videos
5:50 New to trading. If there is a dollar change as you said. And you have $1000, what would you have had to do to earn money in morning? And how much would you have earned at end of day?
At Stop loss you need to add possibility to input a number. Because when you want to expand the distance you need to click about 1000 times. Adding the possibility to input a number then we need to have only 5 clicks
I always trade with a tight stop and have for years, if I am wrong, I want to know right away so that I can get to the business of making money.................
7 лет назад
this has brought clarity to me , thanks . Increasingly with more knowledge the science is getting clearer
I would like ask to you.. At which point of the chart should i make a perfect trade for buy or sell the product..?? I am new in trading and i dont have any idea on how to make a perfect trade at which point of chart should i make a trade.. I hope you'll read my comment and thank you..
can you please help us with explaining how much should the target and stop loss of a stock be for an intraday? It is difficult to predict both these things. If you could elaborate in terms of percentage would be a great help.
212: If there was ever a holy grail -- these would be it: The three most understood, but the most erroneously applied. The three aspects that we do know and can tweak, even in this game of chance, when we do not know where the price may venture, but with these -- we always know that we can handle the outcomes more comfortably.
What if you take the view that the uptrend is slowing and the underlying asset or currency is simply overvalued. Trading is all about seeing opportunities and thinking objectively, having a valid reason for taking a position. As you said, at some point that trend is likely to reverse or flatten out at least at some point then fall a bit or a lot maybe. Questions to consider: What has caused this uptrend? Is there anything fundamental or real driving that asset price which is likely to continue? Has that changed or is it likely to soon? Where has the price been historically? Is there anything to justify a continuation of that trend? Has the trend increased and diverged from moving average in recent days/weeks.. really you could take a position short and still make money on an asset which is overvalued or overbought (if you find evidence of that and believe it to be the case).. simply by waiting days, weeks or months even for it to fall in your portfolio. Here's the danger: You can't do that on high leverage or intraday trading, and that's a mistake traders often make when trading against a trend on a single asset or currency pair. So I agree for those types of traders a safer bet is to buy on the lows in a trend if your time frame is tight and you are on leverage. Even so this is risky still very risky for many traders on high leverage as prices in a trend don't move straight upwards and a price pull-back is likely at *any* given time. So if you buy on a price fall back on leverage, you're screwed potentially if you don't have sufficient margin and the price falls quite a bit before resuming trend. Again, if you have an unrealistic stop loss that's likely to get hit, if the price pulls back so a guaranteed way of losing money.. good technical analysis comes into play here if you want to trade and most traders just don't have that kind of skill. I think it's much harder to trade on intraday/high leverage (even in a trending market) unless of course you get the start of the trend or early into it. It's much more sensible to take a position on a trend as part of an risk managed hedged portfolio and ideally seeing and trading this trend either *before* it starts, or getting into it early but having other assets in a portfolio to hedge the risk of a loss if the price does fall after you're in trend and continues falling for quite some way.
Excellent! Really very informative video for newbie traders. Specially the information about how to correctly place stop losses has been very helpful. I have subscribed to the channel, and please keep up the good work, it is much appreciated. In a future video perhaps I would like to hear your explanation about the recomended amount of leverage to use, and what amount of leverage do you usually use in your own trades, if you use it at all. Thanks!
Hello and thanks for your comment. Your suggestion has been noted. Enjoy your time watching the video tutorials and using Trading 212's mobile and web apps.
6:21 So I gather a new trader should look beyond the intended profit, and make their initial position 1/3rd the cost basis of their intended final position. Set a wide stop loss. Once the trend is in the right direction, but reasonably short of the expected target price of the trade, then add to the position. And begin updating the stop relative to the current price, as well as tightening the stop range around the current price, as the target becomes closer and closer.
Let's say you buy into a stock that is currently trading at $50 and you want to buy in at that price. So you buy in at $50 set a stop loss at $40 and an exit at $100. Is it possible to have the stop loss follow you point for point on the rise? So if the candlesticks are almost at $99 and starts going south, can that stop loss that was following get you out at $90? That would ensure profit with no risk whatsoever. Sure you didn't hit your target but you still had an impressive gain with security. Is this possible and or legal to do as a trader?
Hi Garth, you can take a look at the Trailing Stop orders. Check out this video on the topic: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE--4dIZPhm0uo.html.
Do you know how to get brokerages like interactive brokers to not margin call you for positions that don’t require any additional margin like naked long options? They cost me more than $45k.
Good question. I think it can be for some. I think it is a better idea for most of us to focus on the bigger picture time frames - e.g. 1 hour as you mention, and four hour & dailies, rather than getting caught up in the noise of the shorter-term charts.
Anything can be profitable, but most people will lose money from day trading. It is safer to invest in a diversified portfolio like an S&P500 index fund, and make about on average a 7-8% return on investment every year, rather than take the risk of losing money swing trading.
I'm a real beginner. but i have always bought blue chip companies when there was bad news and the price fell. Waiting up to a year, they always seem to recover. Big companies can afford to bring in the right people to turn the company around. Does this make sense?
I didn't learn anything new from your video, but I stuck around for all of it anyway. That subtle needle about dwindling attention spans kept me around. I have a feeling we're irritated by many of the same things. :) Anyway, your videos are quite sound. Always a clean and concise approach. Good work, David!
II Kasper: Then, think of this as a refresher video where you certainly would apply this in your trading -- this is when you learn! A better attention span will translate into a better application.
I would like to ask you: what do you think about setting market orders where you plan to set your stop loss. It may to be triggered or not, but it seems to be better option than enter the market manually. Most of the time, it does something else than what we expect. For instance EUR/USD daily it does not breaks the trend line few weeks.
