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better be what psychologists call field independent, that is, able to be around dozens of other traders without feeling the need to join in and follow the herd. It is useful to have good assertive skills and the ability to focus your attention independently of others. Otherwise, it is likely you will be overly influenced by what others are saying and doing around you. |
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The scene can be especially intimidating for beginners, as you notice the multiple monitors and overwhelming amounts of data coming at you. For those who prefer a calmer, quieter, and more controlled environment in which to do their trading, the trading room scene will not be for you. |
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There are a couple of other issues worthy of mention. One is the implication in the room I visited that there is just one way to trade correctlyin 1000-share lots. Even beginners were encouraged to trade this amount, which often requires putting between $30,000 to $50,000 or more on the line just to make a fractional gain. This is not the way to start someone off. It is both psychologically and financially more responsible and sensible for beginners coping with the anxiety of trading to start with much smaller share lots. |
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Why not begin with 100 shares and get comfortable entering and exiting trades, without adding the extra anxiety of having to put so much money on the line? You don't take someone just learning how to swim and throw him or her into the deep end of the pool before he or she has even gotten used to the water. |
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The rationale for encouraging traders to trade in 1000-share lots is that with anything less, no worthwhile amount of money can be made on fractional gains. Yes, you will be paying too much in commissions to make any money on trading 100 shares and gaining only a quarter point. |
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So, the answer might be not to make dozens of trades as one is learning, only a few. Slowly, as one gains skill and comfort, larger share lots could be wagered. Any other way is far too risky when so much money is on the line and disrespects the psychological need to ease into trading. |
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It is insufficient to try and approximate the anxiety of having real money on the line by what is called "paper" trading. While doing simulated trading with no money on the line is helpful in learning how to handle pressing the right keys and getting comfortable |
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