Goals for the beginner trader

rhinoceros · 25 August 2006

So, Its wise to have some goals in starting off with this business.

What do you think is a reasonable return, for a beginner, after say twelve months. Assuming its short term gains that I'll be looking at.

What do I reckon? Well, I can make 6% a year with essentially no risk. Add some risk I would want a bit more. Lets say 15%. Is that a reasonable goal?

cheers

NettAssets · 25 August 2006

Re: Beginner's goals. (part 2)

Are you a trader or investor Rhino.
The goals are quite different I think.
Cant find the part one of this thread . Has it got the same name?

John

Joe Blow · 25 August 2006

Re: Beginner's goals. (part 2)

NettAssets said:
Cant find the part one of this thread . Has it got the same name?

I don't think there was a part one. I have renamed the thread.

Realist · 25 August 2006

rhinoceros said:
Well, I can make 6% a year with essentially no risk.

Actually you can't!!

Put your money in the bank at 6% - and you pay tax on it.

Okay so you made 4%. That's good right? NO

Inflation is 4%. Now take out bank fees, and you've actually lost money.

The first goal of a trader in the first year should be not to lose too much.

stink · 25 August 2006

I am with Realist on this one, my only goal is not to lose money and gain knowledge. If i make some in the process then great but i am not counting on it.

Besides my goals and your goals are not going to be the same, does someone who inherits 250k and wants to get in the market have the same goals as me?

Need to expand your question some mate!

Cheers Stink

professor_frink · 25 August 2006

First goal should be to formulate a plan for how your going to trade and then stick to it.

And try not to lose all your money while you are learning

Kind of simple goals, but you can't play the game when you have no money.

I think it's kind of pointless saying you want x% a year. Try to make as much as is available. Might be 6% some years, or 50% in others.

If you have a goal of making a certain % on your account, then you may be tempted to get greedy and go for the extra few cents on a trade when it's not appropriate.

swingstar · 25 August 2006

Don't get your feet wet until you have some sort of rules. With some rules you can do some testing, and only then can you have expectations.

Your goals shouldn't be a certain figure or return. It's obvious you don't have a system, so your goals first should be developing one that suits you.

Ageo · 25 August 2006

Yep i agree,

A good plan, stick to it and learn as you go.

tech/a · 25 August 2006

Being obsessed about the possibility of loss will and does hold you back.

You WILL lose some money in the process of running your trading business,those losses are a cost of doing business.

There is much to the process but there are basically 3 ways of making a consistant profit.
(1) Win more often than you lose. (if position sizes are the same).
(2) Have far bigger winners than losers.
(3) A combination of both---although each can be profitable on their own.

Really my advice would be to actually understand the mechanics of being profitable within a trading business,until you understand the principals behind running a profitable trading business your segmented in your approach.

rhinoceros · 28 August 2006

Thanks all, good advice.

There was a Part 1, it may have been renamed too.

Essentially, I think I want to learn and hell, make some more money. Butit would be short term trading, still experimenting.

Actually you can't!!

Put your money in the bank at 6% - and you pay tax on it.

Okay so you made 4%. That's good right? NO

Inflation is 4%. Now take out bank fees, and you've actually lost money.

No bank fees actually. But I see your point.

happytrader · 28 August 2006

Hi Rhinoceros

If you intend to be a short term trader develop a very specific trading plan to cut down the stress of uncertainty and start small while you program yourself to trade it. Then the money will come.

Cheers
Happytrader

wavepicker · 28 August 2006

stink said:
I am with Realist on this one, my only goal is not to lose money and gain knowledge. If i make some in the process then great but i am not counting on it.

Besides my goals and your goals are not going to be the same, does someone who inherits 250k and wants to get in the market have the same goals as me?

Need to expand your question some mate!

Cheers Stink

I would have to agree you 100% on those comments stink.

The goal of any new investor/ trader should not be get to make $$$ just to try and not lose what they already have. The average new investor/trader goes from one disaster to another. So my advice to anyone new person would simply be to try and avoid disasters. I am fortunate in that I have learnt much from other peoples mistakes as well as my own. Some reading into the history of markets is good start. Then to slowly progress and learn how markets move.

Daytrading by paper and then with small amounts is great. Daytrading can be much effort for not very much gain, but there is one good aspect, and that is it is great for learning, especially in fast moving markets.

Cheers

nizar · 28 August 2006

tech/a said:
Being obsessed about the possibility of loss will and does hold you back.

You WILL lose some money in the process of running your trading business,those losses are a cost of doing business.

There is much to the process but there are basically 3 ways of making a consistant profit.
(1) Win more often than you lose. (if position sizes are the same).
(2) Have far bigger winners than losers.
(3) A combination of both---although each can be profitable on their own.

Really my advice would be to actually understand the mechanics of being profitable within a trading business,until you understand the principals behind running a profitable trading business your segmented in your approach.

yes very true tech/a

i think (1) is quite unrealistic (wat is your %) but even with 50/50 if (2) holds, and it should most of the time, then your system will be very profitable

Goals for the beginner trader

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NettAssets

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stink

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Ageo

tech/a

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rhinoceros

happytrader

wavepicker

nizar

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