LiveTraders Expert Tips: How To Get Started In Trading Stocks

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I’ve spent time at a large bank on a Wall Street Institutional trading desk, and have had many conversations over the years with investment bankers, hedge fund managers and wealth managers; the one thing that stays consistent across the board is their LACK of an exit strategy.

Virtually all of the people I have dealt with and spoken to over the years had no idea when or where they would exit a position. It was usually a very ‘subjective’ decision making process. Those are the pro’s, so what does that say about the average Joe’s? They are even less prepared. A while back when I worked on Wall Street I had a conversation with a friend who was fairly heavily invested in Citibank stock for his retirement. I was genuinely curious about his long term view of the company and what his plans were for his investment. The conversation went something like this:

  • Me: “Hi John, How’s that Citibank investment working out?”
  • John: “Hey Jared, so far pretty good. I plan on holding it into retirement. It’s such a solid company.”
  • Me: “Do you mind if I ask what your price target is?”
  • John: “Oh I don’t know. I guess I don’t really have one. Higher. LOL. Like I said, it’s a long term investment that will boost my retirement in 20 years.”
  • Me: “Ok, I guess I can appreciate that. Just one more thing, ‘what if’ things don’t go so well, and the investment starts to go south, what is your plan then?”
  • John: “Keep in mind, this is a long term investment, so I’m fully prepared for ups and downs and a few bumps here and there. So a pullback wouldn’t concern me too much. It is Citibank, one of the largest banks in the world, I doubt anything really bad is go a happen. If so I’ll probably ride it out and maybe even add more cause it’s such a strong company.”
  • Me: “So you’re ok with a pullback. What about something more serious, like a 50%-60% retracement, would you still hold through that?”
  • John: “Yeah I’m ok with a pullback, and like I said, it’s Citibank, I’m not really worried about a 50%-60% pullback, it’s too solid of a company, and I don’t want to give up the long term potential.”
  • Me: “So basically you’ll hold it no matter what.”
  • John: “Pretty much, yes.”

What can we learn from this conversation with John? For me this conversation was not surprising at all, because the general consensus is that the markets can’t be beat and we should buy and hold forever, especially if it’s a large, ‘solid’ company with good fundamentals. Obviously that’s a slight exaggeration but this thought process is extremely common. ‘Buy and Hold’ is the way to go. The problem with this approach is that people don’t know what to do WHEN (not if) something bad happens.

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Live Traders
Livetraders.com is a collaboration of professional traders: Anmol Singh and Jared Wesley who not only have a vast amount of market knowledge and experience, but also a hunger to help other aspiring traders become great. Here at Livetraders.com we wanted to be different. We wanted to show folks what REAL trading looks like. We offer various strategies and techniques that will suit the majority of aspiring traders. We educate on intra-day trading, swing trading, core trading and even options trading as well. Despite the challenges and the hard work that lies ahead for any new trader, there are also handsome rewards for people who are patient, disciplined and work very hard. These rewards are not just financial, but also with regard to freedom and flexibility with your time and lifestyle. Trading can be done from anywhere there is an internet connection, which makes this a truly special and unique business. Here at Livetraders.com we know all about the flexibility of this wonderful industry, because Jared and Anmol frequently trader from around the world in such places as Japan, Dubai, India, Canada, California, New York, and the Bahamas to name a few. Our goal at Livetraders.com was to build a trading community, of traders, for traders and of course by traders. Most of our clients come through word of mouth, which says alot! We pride ourselves in being upfront and honest with our traders, whether that means a $1,000 winning day or a $1,000 losing day. We want them to see how trades are executed and how to handle the many different scenarios that the stock market can throw at you. It is to this end that Jared and Anmol created Livetraders.com. We have gone through the myriad of pitfalls that this business inevitably dishes out to everyone and we survived through hard work, dedication and passion to success. We were able to do this for 3 main reasons: Dedication, Education and Persistence. So, if you are looking for a place that is open and honest about how to become a successful trader, then look no further than Livetraders.com. Jared and Anmol are here to help you achieve your dreams of becoming the best trader you can be. We've spent a long time mastering our craft, and now we have a platform to help others by showing them what successful, profitable trading looks like.