Trucker Trader

Trading is no different than trucking. Go into it without enough knowledge there’s no shortage of people waiting to bleed you white with brokerage fees.

 

Who offers the best service, or online Brokerage nowadays? How many trades? What cost? Minimum balance requirements?

 

There is no more broker fees. Now they get u by selling your trade information (called - order flow) to the big hedge funds who use this information to take the other side of the retail traders trades....this is why robinhood became the biggest thing. Offering no commision trades. many people fail to see how it would be better to pay commission on trades and not be adding to the information big guys use against you.

 

Most people would flip if the knew how much information gets packaged up and sold every time they use their bank card. The banks and the retailers both sell that information to multiple businesses multiple ways. Now Amazon, would people love sitting on the couch ordering stuff as much if they knew that almost instantly hundreds of people know what they bought, when, from who, what they paid for it and how they paid at the very least? They’re even selling information they collect from the people that last mile it. Hey, what’s the house these people live in look like, they got nice cars and ####? What make, is it a Tesla? Driveway paved? They going to need gutters soon? It’s ridiculous, but marketing and advertising companies pay for that.

 

Yes those figures are about right or around the 90 % mark. The issue with trading is knowing when to buy "go long" and when to sell "go short" if we all knew this everyone would be millionaires or maybe even billionaires.
We're often told buy on dips, however where is the exact bottom? People have often done this only to see a stock price continue to fall. Buy at support levels, problem is the big institutions know that everyone is doing this and will push prices lower putting most traders at a loss when they decide to exit a trade that''s when the big players buy back in.
WD Gann a famous trader that started out in the mid 20's had system he used when he took a trade and that was to set a stop loss at 3 points ($3) below the low of the trading day in which he bought the stock, for example if he were to purchase Apple @ $220 and the low of the day was $218.95 his stop loss was set at $215.95 if price hit that level or went below he would simply exit the trade at a loss, some may feel no you should hold on and wait for the price to go back up all well and good problem is when will that be? And this is why many traders lose money they simply hold on to a stock that''s made a loss in the hope that it will go back up, one of the best examples I saw when this happened was the large mining company Rio Tinto reached a high of $153 in late 2007, this was when the market was beginning to peak prior to the 2008 GFC the stock then stated going down hit $150 those with the $3 stop loss rule would now be bailing out, at around a $3 a share loss, The price continued to fall hit $145, $135, $100, $80, $60, then finally bottomed by March 2009 @ around the $50 mark, those still holding on hoping it would go back up are now at a $100 loss per share, those that held on in 2008, 2009 are still waiting some 16 years later. Sure the stock did eventually go higher but still has not reached that high of $153 set in 2007.
They say start by trading a demo account however no emotion is involved with this as its not your money, this is the hard part about trading is emotions can take control and influence our decisions.

 

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