Controversial Advice?

[Predicton]

Hi,

I've just read, yet another post, in which the anguish jumps out of the page. So I thought I'd put a point of view which is different to the wisdom which is usually promoted on this forum.

Usually beginners are advised to trade on favourites where the liquidity is high and there is less chance of significant damage to their bank. My advice, for beginners is "stay away from the money" and I say it as vehemently as that little woman in Poltergeist said "stay away from the light, Carol Anne". For beginners "the money" is equivelant to "the beast" in Poltergeist. Ask yourself, where the money comes from and the answer, in trading terms at least, should be from bigger, better (at least for now) and more experienced traders. On the occasions I venture into high liquidity markets, I can almost feel their cold, bony, merciless fingers dipping into my pockets and removing huge wads (I exaggerate of course, for dramatic purposes)

Why not dally awhile amongst the longer priced competitors, those which you dismiss with a snort, but whose price shifts are less likely to be "market moves" and more likely to reflect their winning potential. Who knows, it might even work,

cheers, P

[lilgreenback]

Hi There,

An a happy New Year to ona and all, I think you may have a point there. As an accomplishied "loser" I have found that I tend to trade a little more succesfully if I stay away from the fav and concentrate my efforts on 2nd 3rd or 4th fav depending on what is happening in the market. At least until I get my "eye" in after a bit of time away from the screen.

I find I can make more succesful trades consistently over a period of time not great amounts but there seems to be less volatility. The downside is less volume and getting matched. You also need to keep checking what the other runners are doing, what's coming in or going out as when you are hit it does hurt. Avoid anything above 8.0 and 9.0 and watch the stakes and liability.

Have a good 2010.

LilGB

[LeTiss]

Nothing controversial about this at all.

I've found it much easier to trade successfully on horses by avoiding the top 3 in the betting

[MethodMan]

I agree. This is sound advice. Trading the outsiders is like using the learner slopes when learning to ski. If you're going to trade the favourite bear in mind that you're up against the big boys who have more experience, bigger bank balances and are just better traders, so don't be surprised if you get hustled from time to time.