How to Begin: Realistic Expectations

Posted on May 13 2015 - 11:33am by Sharpe Trade

We began our How to Begin series with this article.

The “How to Begin” playlist on YouTube can be found at this link.

We continue on from our last post on this topic that you can find here.

This ‘How to Begin’ series started with a discussion of the first place to begin, namely, Dave Ramsey’s “Baby Steps”. We then discussed how “not to begin” investing and trading in the markets by sharing a few personal horror stories.  As well, we have discussed the wide variety of options that are open to a trader; position trades, day trading, Forex, Commodity Futures, Valuation Investing, Options, directional, non-directional, arbitrage and more.  We continued with a general outline of topics that one could use as the categories of their continued education for investing and trading, as well as an implementation outline.

It is unfortunate that at times, people will begin to trade, with real money, and not even understand what could be considered a good return for a given time-frame.  25%?   10%?   5%?

And that topic is a bit … involved.  

But it’s important to understand, which we discuss in the following video entry …

(After the following video, we continue the series of ‘How to Begin’ in the next entry …)

1 Comment so far. Feel free to join this conversation.

  1. NewLife May 13, 2015 at 4:10 pm - Reply

    One of the hardest things to overcome, and something I think could be attributed to the lack of success among many traders, is that it’s very likely that the probability of experiencing drawdown right off the bat is pretty high.

    Starting with I guess a 50/50 chance of beginning with a string of losers, and adding to that the likelihood of making beginners mistakes, makes the beginning the most challenging time.

    The inverse of that which could be just as damaging would be winning a bunch right in the beginning and gaining undeserved confidence, leading to big losing trades once the market and the method find conflict.

    I think I am lucky to have pretty much broken even for a while.

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