Quote:
Originally Posted by rachael24
Which strategy would you guys suggest for a new trader?
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I'd sort of have to agree with the progression that CDubb mentions.
I generally recommend that when folks feel ready to enter the market (
Here's a series of videos that talk about the education that I feel at least, is necessary before actually getting involved in the markets. My mantra is that money management principles are the key to making money in this business) - to move to:
1) Investing: Building a long term investment porfolio built on the power of DRIP's. Not all brokerages let you have DRIP's though. Scottrade for example, doesn't engage in the programs. Whereas with a brokerage like Sharebuilder? Sharebuilder is built more for "Investing", so to engage with DRIP with Sharebuilder is very easy (
Literally, click it on and off)
2) Position Trading: When they feel comfortable enough with Investing, have a separate account that you can position trade. Position trading is trading with a 5 to 7 month time frame.
3) Swing Trading: This is once you have a feel for 5 to 7 month time frame. Swing Trades are usually done within 5 to 7 day time frame. Sometimes as short as 2 days. Sometimes as long as 11 days.
4) Day Trading: Once you have swing trading mastered, you may be ready for day trading, if that's your psychology. Personally, although I
could day trade, it's just not my psychological build. I've probably had less than 10 day trades in my entire trading career. But this is the big leagues. You need to have mastered emotional discipline in order to be successful at it.