Leadcapital Markets - TRADE.com

[Adowyn]

Huh, that's unexpected a little. I'm sorry you didn't get a chance to try them, I can suggest you to find other way to invest your money. As I said, it's better to invest in something else, porfolios are looking too unceratin.

 

[Gravelwood]

I wonder what's happened to water tech portfolio that's been discussed here recently. @Jodwyng Man, how is your investment doing? Did they kick you outta business or what?

 

[Jodwyng]

All OK on my side. I still have my water portfolio running. I'm afraid though trade.com reallly stopped accepting new clients for this offer as it appears from their website update. CFDs are still there fine, in case someone is interested and the brokerage functions fine. I guess this is all about some priorities that they've reconsidered recently. I can't be sure enough whether this is a temporary thing and whether they plan to return thematic portfolios in the nearest future. They might have notified me on e-mail but I receive hundreds of letters from dozens of mailing lists, so I might simply missed smth...
Also, want to cheer a little. Water Technologies begun to grow (finally!!) and show above 30% of anual returns now, amazing! To be honest, I lost all expectations on this portfolio but it begun to grow and keep growing almost every day. My precious

 

[Lailsa]

I'm looking to invest in trading and want to start with Trade.com, but I'm new to trading. How long does it take to learn trading?

 

[Jodwyng]

The whole life, actually. I'm trading for 6 years now and I still feel that I have a lot to learn.

 

[Lailsa]

I mean learn basics of course. At least to start earning, not losing all the time.

 

[Gravelwood]

It took me about a year to start feeling confident in the market, but I started earning money much earlier. The most important thing is to learn money management. One professional trader told me that I should not focus on EARNING but on SAVING my money. To compare, you must think like a pension fund, lol. I mean, just concentrate on in order not to lose money. If at the end of the month you still have 100% of your deposit, it's already a success.
I think you should start with money management, it's the basis of trading.

 

[Lailsa]

I've tried to start with money-management, but, frankly speaking, I still don't understand what's that. Is it different from risk management or it's the same?

 

[Gravelwood]

Nah, it's not the same.
I think you're applying money management anyway, it's just about how to manage trader's capital, including sellection of the assets, price and risk insurance.
Risk management is a broader thing, which also includes diversification of assets and hedging.
Both money and risk management are important, but first you need to understand how to manage your capital, in fact most traders just fail at this step.

 

[Adowyn]

The most common rule you should understand is that the size of your trade shouldn't exceed 10% of your capital, if it's higher, than the trade is too risky, especially for a beginner.

 

[Gravelwood]

Even more, I can say it shouldn't exceed 5% of the entire deposit, but the most common number is even lower - 2%. If your trade exceed this number, it has moderate risk level. If it's 5%, it's highly risky.
Also, there's one more important rule - your stop-loss/take profit ratio should be 1:3. Tnat means that if you set stop loss at 10 points, than your take profit should be set at 30.
I can suggest you to read A Trader's Money Management System: How to Ensure Profit and Avoid the Risk of Ruin by Bennett McDowell, it's quite old but still can give you a good understanding of how money management works.

 

[Adowyn]

I can't say that's the best book for a beginner. it's complicated, imo. But I agree, it explains money management quite well.

 

[Lailsa]

Thx all, I will try to read, hope it isn't too complicated.
I haven't even expected such usefull advices.

 

[Lailsa]

Guys, I've read that stoploss and take profit aren't needed, as they restricts variability of your trading and that's better to close all trades manually. Is that so?

 

[Adowyn]

I don't know where you read that. No, stop-loss and take profit is one of the important aspects of trading, because otherwise you can lose too much on one trade. It seems you are trying a regular CFD account with Trade.com . Intraday most likely. This type of trading is impossible to be successful long enough witout a proper stop and a profit target.

 

[Lailsa]

Well, what if the asset goes up in value after it has gone down very hard. Wouldn't that make sense?

 

[Adowyn]

If you're trading with 3-5 trades, that can work so. But if you're taking trading seriously, you simply can't control each trade 24/7, so you would miss some of them and would lose money on them. Stop loss helps to avoid such issues. Otherwise, you can't control taking profit as well, so sometimes you can miss your profitable trades. So, it's better to set up them ALWAYS.

 

[talhakhan]

Good to know. Depends on how many IPOs you take part in, I guess. If there are many, the portfolio will balance itself.

 

[Gravelwood]

If you're trading with 3-5 trades, that can work so. But if you're taking trading seriously, you simply can't control each trade 24/7, so you would miss some of them and would lose money on them. Stop loss helps to avoid such issues. Otherwise, you can't control taking profit as well, so sometimes you can miss your profitable trades. So, it's better to set up them ALWAYS.

Moreover, trading isn't about one trade, it's complex business. You shouldn't hope for one profitable trade, that's fine, but the point of a trading strategy is to have more profitable trades and you earn in total. And stop-loss helps a lot with that. What's more, it's not like you're controlling the trade 24/7, so stop-loss/take profit partially automates the trading.
Don't follow those who write something against the generally accepted rules, such "traders" are just trying to reinvent the wheel.

 

[Lailsa]

Okey, maybe... I have 4 opened trades now, so for me that seemed easy. But really, I would have 10-15 trades, I wouldn't be able manage all of them. By the way, I'm almost 24/7 online, as I'm using mobile app to check trades sometimes, even if I'm busy.