Hard. Hard. Hard. Hard.
Who'd have thought that buying low and selling high could cause a heart attack?
I made two profitable trades and and two bad trades which has put my net profit back to 0. My capital is back to around $4,000 and I am trading some speculative and volatile mining shares. I would love to trade ASX200 top-dogs but I feel I need $50,000 capital to make some okay profits.. and I am using this money now to learn all the lessons that I cannot learn on paper!
I just want to ask a few experienced people about the importance of a few things.
1. Firstly, how important is it to know the stock you're trading? By this I mean, watching it for a few weeks/months to see how the buy/sell pattern pan out and the unexpected events happen. I do more technical work than fundamental work and focus on volume and chart-work.
2. Secondly, my plan is to swing-trade in periods of 3-4 days (on average) but I got carried away (greedy) and tried intra-day trading and it wiped my profits.
How often should I expect my 'time barrier' to change? Should I focus on keeping it strict or should I focus more on locking away certain profits after Buying and not letting the intra-day activity give me stress attacks..