New Trader? Avoid These 3 HUGE MISTAKES!

[@covingtoncreek]

As your student, just for fun I'm going to post my 3 things I would avoid first, and then watch your video and post back! 1. Lack of a reliable consistent strategy development process. 2. Inadequate trading capital. 3. Lack of diversification.

[@covingtoncreek]

OK we were close! Your list had the expectations thing. That is true! The first "furu" I followed was in the 90's, and I heard about him through the mail. Futures charts with historical data marked up - I remember it showed a bull run in soybeans and you would have made about $800k over several months if you got in and out at just the right times, as well as pyramiding. But social media has made it all worse.

[@AlgoTradingWithKevinDavey]

Sounds like Ken Roberts, the guy with the cowboy hat. I got my money back from him when paper trading failed. I remember him showing a fabulous Sugar trade!

[@covingtoncreek]

@@AlgoTradingWithKevinDavey You are correct sir! I was too impatient for paper trading at that point, and paid the price.

[@gccabraham]

You are well explaining the whole truth, thanks for your comments.

[@AlgoTradingWithKevinDavey]

You are very welcome

[@grantcameron4200]

Great video... I'm fully aware this question is extremely vague and can depend on lots of things like risk appetite and how many strategies you're looking to trade but do you have any suggestion on how much capital is good to start with? Or even how much to assign to a strategy? Thanks!

[@AlgoTradingWithKevinDavey]

I teach specific techniques in my course, looking at a multiple of required margin is one possible way.

[@grantcameron4200]

@@AlgoTradingWithKevinDavey Thank you Kevin.

[@kevinr8431]

Number one you said is lack of funds so that I wonder what do you recommend as a starting amount?

[@AlgoTradingWithKevinDavey]

It totally depends on what your are trading, your risk tolerance etc. One tool to help you: kjtradingsystems.com/risk-of-ruin.html

[@kevinr8431]

Number three is unreasonable expectations I was wondering if you could give us a sense of what a reasonable result would be

[@AlgoTradingWithKevinDavey]

It is all related to your risk tolerance. If you can handle a 10% max drawdown, don't expect 50% + annual returns. iasg.com has data on professionals, that might be a good place to look.