Is this a good time to enter the market?

[taz2007]

Hi everyone. I am new to share trading. Was wondering if this is a safe period to start?

 

[wayneL]

Hi everyone. I am new to share trading. Was wondering if this is a safe period to start?

It could be an educational time to start.

 

[Garpal Gumnut]

Hi everyone. I am new to share trading. Was wondering if this is a safe period to start?

Theres never a safe time to start. Many people feel the market is reaching full value, that it is as expensive as it will get in the short term. Others hold a contrary opinion. The only way to find out is to get involved.

Paper trading may be good way to start.

Garpal

 

[nizar]

Paper trading may be good way to start.

Yeh paper trading may be, i agree.

An important thing to remmeber is that the market will always be there. Dont be in a hurry and rush into things because you are scared of missing out on opportunities. There will be many more opportunities that will come at a time when you are better prepared.

A mate of mine thought the market was reaching full value towards the end of 2005. I told him just because its gone up doesnt mean it cant go higher. And then i babbled on about China and stronger for longer commodity prices.

Anyway he got in, hasnt looked back.

Bullmarkets always go on for longer than people expect. They usually end with irrational exuberance phase (the index almost doubled in the year upto october 1987). I have yet to see this.

I would suggest some education before you get started, such as:

Developing a trading plan
1/ Trading for a living: Alexander elder
2/ Trade your way to financial freedom: Van Tharp

Charting & breakouts
3/ Secrets to profiting in bull and bearmarkets: Stan Weinstein

Mechanical trading
4/ Trend Following: Michael Covel

Fundamental analysis
5/ One up on Wall St: Peter Lynch

I focus solely on price action these days but i think by reading all the above you will have a well rounded view and know which method of trading suits you the best.

A good saying i heard once was: its not timing the markets which matters, but rather, time in the markets.

 

[CanOz]

One thing worth noting in my view, when you come into a market full of this level of volitility you need to be able to choose positions based on something subjective. I was not prepared for it and i got taken out of too many positions due to the fact that i didn't give wide enough consideration to the price action and i didn't consider the quality of the trade.

I now see that being very picky about the positions i take is even moe important in times like these.

Wider stops also means that my postions are smaller during these periods, so i try for trades that have a better R/R.

I've had a few beers...hope this is what i wanted to say..."hick"

Cheers,

 

[nizar]

One thing worth noting in my view, when you come into a market full of this level of volitility you need to be able to choose positions based on something subjective. I was not prepared for it and i got taken out of too many positions due to the fact that i didn't give wide enough consideration to the price action and i didn't consider the quality of the trade.

I now see that being very picky about the positions i take is even moe important in times like these.

Wider stops also means that my postions are smaller during these periods, so i try for trades that have a better R/R.

I've had a few beers...hope this is what i wanted to say..."hick"

Cheers,

Can,

Looks like we have followed similar paths.
I used to get stopped out heaps, because i wanted a tight stop so i could buy heaps.

Now I dont mind small position sizes, you can always pyramid into the winners as they start moving in your favour.