Failure 2. Lack of important knowledge and trading system, using real trading from the beginning
It's funny - I studied the theory for half a year but had no idea about the basic laws of price movement. I have no idea:
- How the order is executed
- What is the bid/ask price
- What is order flow
I still remember my first trade - I bought Aeroflot stock during a downtrend. What I did was like a joke - I bought it because it was down.
I marked the week I purchased the stock with the number 1. Unfortunately, this wasn't the last time I did this.
For about half a year, I bought everything, gold, crude oil, index futures, foreign exchange futures, etc. Soon the account lost 20%.
Of course, there are also some accidental successes, such as catching an uptrend when I buy. For example, I opened a long position in Lukoil stock futures on New Year's Eve two years ago. Relatively large profits were made both times: about 15,000 rubles in 2018, slightly less in 2019 (premature closing of the position).
But don't think that I have done any technical or fundamental analysis. Everything is based on "feeling" and "possibility". Unsystematic trading made me make many mistakes, such as trading when I was bored, taking too heavy trading positions, trading different markets and instruments at the same time, without any plan, etc. Of course it is different now. I no longer pay attention to why the price changes this way or that, but pay attention to how it changes.
Do you think I did a thorough technical or fundamental analysis before buying? no. I bought these futures hoping for a New Year's rally. During my first year on the exchange, my trading system was very proudly called "Maybe".
How to avoid this failure?
- Interpret charts deeply to understand the struggle between buyers and sellers in the market.
- If day trading, be sure to pay attention to market momentum.
- Start with the basics of price market movement, aggregation, volume and order flow.
It's funny - I studied the theory for half a year but had no idea about the basic laws of price movement. I have no idea:
- How the order is executed
- What is the bid/ask price
- What is order flow
I still remember my first trade - I bought Aeroflot stock during a downtrend. What I did was like a joke - I bought it because it was down.
I marked the week I purchased the stock with the number 1. Unfortunately, this wasn't the last time I did this.
For about half a year, I bought everything, gold, crude oil, index futures, foreign exchange futures, etc. Soon the account lost 20%.
Of course, there are also some accidental successes, such as catching an uptrend when I buy. For example, I opened a long position in Lukoil stock futures on New Year's Eve two years ago. Relatively large profits were made both times: about 15,000 rubles in 2018, slightly less in 2019 (premature closing of the position).
But don't think that I have done any technical or fundamental analysis. Everything is based on "feeling" and "possibility". Unsystematic trading made me make many mistakes, such as trading when I was bored, taking too heavy trading positions, trading different markets and instruments at the same time, without any plan, etc. Of course it is different now. I no longer pay attention to why the price changes this way or that, but pay attention to how it changes.
Do you think I did a thorough technical or fundamental analysis before buying? no. I bought these futures hoping for a New Year's rally. During my first year on the exchange, my trading system was very proudly called "Maybe".
How to avoid this failure?
- Interpret charts deeply to understand the struggle between buyers and sellers in the market.
- If day trading, be sure to pay attention to market momentum.
- Start with the basics of price market movement, aggregation, volume and order flow.