1. How does a beginner get started?

Here are Ten Tips for Successful Trading that may help you.
 
1. Educate Yourself
Those who put the work into it, who strive to trade with method and discipline, are the
ones who are consistently successful in the long run. It is very important to have a solid foundation of method before you risk your portfolio.

2. Chose a service-oriented broker
Making commission costs your only criteria for finding a broker may very well cost you much more than you save in the long run. The speed of executions, confirmations, availability and willingness to help when you have questions and problems are of utmost importance and will go a very long way in saving you from losses due to broker errors, delays, and misunderstandings. We recommend Shoreline Trading for their excellent service and competitive rates.

3. Create realistic goals and a concrete plan of how to achieve them
You are not setting yourself up for success if you jump into trading with no experience or education, and unrealistic expectations. Whether you are trading as a career or a part-time endeavor, it is helpful to see it as a business, develop conservative goals, and figure out exactly what is needed to achieve them.

4. Keep an accurate and thorough journal of your trading
By keeping accurate records of your trading habits, it becomes a wonderful tool for looking back in objective reflection. Looking for common denominators in good and bad trades will help pin-point your strengths and weaknesses, and find which types of trades work best for you. The more thorough the journal is, the better a tool it becomes.

5. Trade on paper only, until your system is 90% correct
Learn, experiment, and make your initial mistakes on paper only. Make sure your system is accurate, consistent, and can change with the market before you risk your portfolio.

6. Begin trading live with a very small number of shares
One of the largest problems with trading is that it looks easier than it is. Once your paper-trading is accurate, your education has not ended, but has moved on to a more difficult stage, because now is when emotions set in. Take it slowly, cautiously, conservatively and build good habits first with small shares.

7. Safety first, potential second
One key to trading consistently is to pay close attention to total risk. Learn to recognize and avoid high-risk situations, regardless of the potential. Small consistent gains add up to much more in the long run than large high-risk gains accompanied by huge losses. The turtle won the race.

8. Separate expectations from hope
Base your trading on solid methods and expectations, predictability and patterns, education and research, not on hope or guessing. Trade according to what you see happening, not according to what you want to happen.

9. Learn to admit and react quickly when you are wrong
Whether or not you can keep stops will determine your ultimate success or failure at trading. Ninety percent of your losses can come from 10% of your trades. It is very important to be aware of this early and give it full attention to avoid forming bad habits. Keep your ego in check.

10. If you are losing, do not continue until you know why
If you are losing, things will not get magically better by continuing on the same path. Back up and re-evaluate before proceeding.
 

If there are any more questions I can answer for you though, please feel free to ask at any time. You can private message me in the room, or email at gimmie@mtrader.com 

See you in the room!
Shawn Wolff-Klug (Gimmie)