Today's Trading Hell

[Nvesta81]

As a newbie futures trader I have a few questions I need to ask.

I know that tape and pivot levels are important things to look at, and volume etc... but I guess that's what I'm really wondering, is what other 'clues' do you guys keep on your radar to feel comfortable enough to pull the trigger when it's time? I mean I often second guess myself in stocks when I reach a S/R level, because things look like will bounce off and just when you think you confirmed the move it changes.. how can you really 'know'? At the end of the day I think the only real advice one can offer to a newbie is to learn money management above all else.. because there is definitely a gambling element to this, but I would like to hear more from veteran future traders. I'm eager to learn as always...

Oh, if you guys could point a newb to some "can't skip" reading material, I would appreciate it!

[brownsfan019]

Great points Tin!

Here's my question and I'm sure others are thinking this - for those recommending a mentor, where do you go/start? I personally never really had a personal mentor and I'm sure many would like to know where you went and/or how you found one. There's your obvious vendors out there and who knows where to start there...

Just wondering how you guys found a worthwhile mentor - whether paid or not - and if you want to, post contact info here for others to consider.

[cooter]

	Quote:	AbeSmith
	I see that my comission is 4.26 per contract, and thus 8.52 per roundtrip. Is that too hight?

For a newbie like you - actually no.

Why? Cause you need to feel the pain before you enjoy the pleasure.

Futures trading is a rewarding business, but it comes with a very steep and hard learning curve, and you are just starting out on your journey.

Welcome to the jungle, grasshopper!

[brownsfan019]

	Quote:	cooter
	I beg to differ. The market decides for or against you rather quickly each and everyday. Abe found out the hard way today.

You're right Cooter, I meant to say that Abe needs to find a trading style that is profitable and works for him. The markets will teach him quickly whether he can cut it or not.

[cooter]

That's if this guy is for real.

	Quote:	AbeSmith
	I will tell you and everyone here more about myself: I am very new to trading. I was joking about the professional trader bit, but you probably know that already. Anyways, I am 31 years old. Graduated from law school 2 years ago. Oh how much I hate law. I tried studying for the bar and really disliked it. So I decided to forget about it and do something that is more pleasant and fits my personality. So on 7/7/07 I bought a lottery ticket, but it was not a high probability setup...lol.

With a law degree, I'm sure he can do far better than this. Clearly, trading does not yet fit his personality - if those trades are any indication.

[brownsfan019]

	Quote:	Unleashed
	I know that tape and pivot levels are important things to look at, and volume etc... but I guess that's what I'm really wondering, is what other 'clues' do you guys keep on your radar to feel comfortable enough to pull the trigger when it's time? I mean I often second guess myself in stocks when I reach a S/R level, because things look like will bounce off and just when you think you confirmed the move it changes.. how can you really 'know'? At the end of the day I think the only real advice one can offer to a newbie is to learn money management above all else.. because there is definitely a gambling element to this, but I would like to hear more from veteran future traders. I'm eager to learn as always... Oh, if you guys could point a newb to some "can't skip" reading material, I would appreciate it!

unleashed - there's no such thing as 'clues' that work for all traders, all the time. I personally like candlestick analysis and would recommend books by Steve Nison. Others would recommend a variety of things and no one is right or wrong. That's part of the learning process - finding what works for you.

[AbeSmith]

I assure you gentlemen, and ladies if there are any reading this, that, um...this topic is not a joke. Let me rephrase, it was not meant to be a joke. The facts I have stated were all true. I would like to thank everyone again for their patience and above all honesty. I appreciate it very much and it has been a tremendous help to me.

This site is filled with some of the nicest and intelligent people I have every come across in the internet. The combination of nice and intelligent is not easy to find, and I feel very happy to have found it.

[AbeSmith]

	Quote:	TinGull
	For my 2 cents....I still consider myself new at this; it's been about 10 months now since I started day trading futures. I had started out trading option spreads before that and learned a lot about the market during that period. Day trading is intense, and I'll give my little bit of advice assuming the thread isn't a joke. Like brown said...these markets are serious professionals who are out there to take your money...and they don't even send you a "thank you" card!! On the first day of learning how to play the violin, do you think you could go and play with the Boston Pops? Nope. I'm still in the "high school" orchestra with my trading....maybe moving up to the collegiate level soon. 10 months later and I'm now just getting the hang of things. I've been trading 1 contract for almost this entire time, and really just this week have started trading 2 since I feel MUCH more comfortable with how I'm trading. So, my first bit of advice...trade as little size as possible. Even maybe start day trading something like a few shares of SPY or DIA or something where your account can't get hit hard while you learn. You'll be learning forever...seriously. Use a hard stop. There's very few people who are consistently disciplined enough to use a mental stop and use it each and every time without fail. I know I'll never do that. Hard stops are the way to go IMO. Definitely get a mentor. I wish I had done it sooner. Someone who can guide you through the learning process.

Excellent advice Tin. Thank you very much.

[Dogpile]

Agree with the mentoring part. Linda Rashke was my mentor. www.lbrgroup.com. Think its like $100 per month to get the transcripts to the trading room ($375 per month for full membership and live trading room access). There is a ton of content there for $100 if you are learning. I spent a year in that trading room and learned a ton. But first read her book 'Street Smarts'... then join the room and print off the transcripts and read them and review the charts they post on 'Daily Educational'.

my second favorite book is 'Markets In Profile' by Dalton. Great book on understanding 'value' versus 'price'. he also has a useful newsletter that you can sign up to receive at www.marketsinprofile.com

John Carters 'Mastering The Trade' is o.k. this could be a useful purchase for newer traders as it has a lot of good overview material.

--------

I remember my first year. I overtraded my account big-time. All my good trades were wiped out by my overtrading. many days, I would be up big and then fritter most of it away. then I would lose money on another day and slowly bleed my account down.

so my top advice would be this: don't overtrade your account. you need to build a collection of profitable set-ups. this takes time. these set-ups need to fit your personality/style or else you won't truly believe in them and give up on them. each set-up might only occur a few times per week on average. or one might occur 3 times in one day and then not for 3 days. so you have to build up a library of set-ups and trade a few different contracts as sometimes 1 just sucks for a while. personally, I favor YM and NQ. The both are cheap per tick and have all the liquidity you will ever need.

Linda Rashke makes a small number of points each day but she makes money almost every day and will use big size when a clean set-up arrives.
The beauty of futures is you really just need to make a small number of points to make a living. Overtrading will chop you up. Disciplined trading with high % set-ups and bigger size is the way to go as far as I am concerned. It is so nice to wait for your set-up, catch a few points --- and have your day made.

[AbeSmith]

	Quote:	Dogpile
	Agree with the mentoring part. Linda Rashke was my mentor. www.lbrgroup.com. Think its like $100 per month to get the transcripts to the trading room ($375 per month for full membership and live trading room access). There is a ton of content there for $100 if you are learning. I spent a year in that trading room and learned a ton. But first read her book 'Street Smarts'... then join the room and print off the transcripts and read them and review the charts they post on 'Daily Educational'. my second favorite book is 'Markets In Profile' by Dalton. Great book on understanding 'value' versus 'price'. he also has a useful newsletter that you can sign up to receive at www.marketsinprofile.com John Carters 'Mastering The Trade' is o.k. this could be a useful purchase for newer traders as it has a lot of good overview material. -------- I remember my first year. I overtraded my account big-time. All my good trades were wiped out by my overtrading. many days, I would be up big and then fritter most of it away. then I would lose money on another day and slowly bleed my account down. so my top advice would be this: don't overtrade your account. you need to build a collection of profitable set-ups. this takes time. these set-ups need to fit your personality/style or else you won't truly believe in them and give up on them. each set-up might only occur a few times per week on average. or one might occur 3 times in one day and then not for 3 days. so you have to build up a library of set-ups and trade a few different contracts as sometimes 1 just sucks for a while. personally, I favor YM and NQ. The both are cheap per tick and have all the liquidity you will ever need. Linda Rashke makes a small number of points each day but she makes money almost every day and will use big size when a clean set-up arrives. The beauty of futures is you really just need to make a small number of points to make a living. Overtrading will chop you up. Disciplined trading with high % set-ups and bigger size is the way to go as far as I am concerned. It is so nice to wait for your set-up, catch a few points --- and have your day made.

Excellent post Dogpile. Thank you.