I started out as a new trader in march and started trading CFD'S in may. so far i have lost so much money. all i was looking for was to make a simple R200 a day. instead i have lost so much. i still believe its possible to achieve my goal, but im so reluctant to trade now. any advise
No one starts out good at trading.Like any other skill it takes a long time to become even slightly good at it.Think of your losses as school fees-we have all paid them at one time or another.Learn from your mistakes and just keep learning, learning, learning.It is easy to make money here and easy to lose it.One day you will start making more than you lose.If you have a day job keep it while you are learning otherwise you will be wiped out quickly. If you don't have a job then trade very small at first so your money lasts (depending on how much you have of course). If you started playing golf today for the first time and went out tomorrow to play against the pros they would kill you-it's the same with trading.Try to bring your handicap down!
I also started in April this year i have lost four company and win one, so far i have learn my mistake,wait to buy and try as many technical information before you buy,know the future and history of the company and many more, the money i lost is painfull but i believe one day it will come back.
could make money next week if you buy today .. could lose money next week if you buy today .. it is either or and nobody knows which it is until after .. low anything is meaningless .. they can stay low for longer than one can stay in the market ..
worse thing that can happen is you do buy and make money because it is no strategy just a whim and not repeatedly but one believes the luck was and is repeatable ..
trading is about a clear cut, tested and proven trading system, one that you trade with rigid discipline without ever questioning anything ..
last point on CFR, check this post in twitter for another view that looks very ugly
Ok, sorry, you probably get this question a lot but would this trading system (For warrants - short term)for example mean buy and sell when lines cross on indicator like RSI irrespective from wheter it is high or low ?
yip, use a RSI, MACD or even just price (nothing fancy, standard uses for the indicator / oscillator) .. Riettes Saturday course has a great trading strategy .. also important, markets / stocks crash from over sold
with regards to risk management, is diversification the only way to reduce risk? i started trading CFD cause i was trying to avoid the tax cost involved in trading shares, it is cheaper to trade cfd than shares.