[d0n]

Hi everybody,
first of all, I am fascinated by the world of trading. I see a lot of potential there. I've never been the kind of person who would think that a 9-5 job is the way to live well.

I would like to ask for advice on how to become successful.

I am part of a little commodities trading group, where two succesfull mentors are teaching their strategy. It seems to be a great working strategy, but the problem is that the specific occasion occurs only 2-4 a week. (it is a special kind of bar, specific point on the CCI, eventually the MACD). It is very difficult to be watching the graphs for several hours a day and wait for it to occur only 2x a week and thus makes it actually quite difficult. I would like something that I can do more actively, rather than be the hunter who waits for his prey for hours/days. Also, I understand that the commodities market can be riskier for a beginner. (even though I only try to start with eminis).

I am also curious to start with stocks now.
I talked to a good trader who recommended me that I could start with two things,1. look at the stocks in let's say NASDAQ that do the best or the worst in the first 4 minutes after the market opens. They should gain or lose at least 4%, then either buy or sell them and hold them for a few hours. Do this with 2-3 stocks.

2. use a slow stochastic (80 and 20), 3 MAs (20, 50, 200) and based on those enter trades. If the stochastic is over 80 then sell, if under 20 then buy. Also based on the 20 and 50 MAs to cross and follow the trend by the 200 one.

Does any of this have sense? would anyone improve that?
Where do I find good live stocks chart data for free to start with?
How do I find a working strategy for myself in the neverending amount of information that there is out there?

I plan to start with approx. 2000-3000 USD.

Thanks for the help.

[mike21]

If you're going to day-trade stocks you need to be aware of the PDT rule.

The PDT Rule | The Small Trader

[d0n]

damn, so that makes it basically impossible... what abou trading on the NASDAQ then?

[Tams]

Originally Posted by d0n »

Hi everybody,
first of all, I am fascinated by the world of trading. I see a lot of potential there. I've never been the kind of person who would think that a 9-5 job is the way to live well.

if you want to do trading because you don't like your 9-5 job,
then you are setting yourself up for failure.
Trading is worse than any 9-5 job.
Trading requires more studying and learning than any 9-5 job.
Trading requires more discipline than any 9-5 job.
Trading is more boring than any 9-5 job.
Trading provides less satisfaction than any 9-5 job.
Trading gives you more stress than any 9-5 job.
Trading requires you to work longer hours than any 9-5 job.

Can trading provide a better living than a 9-5 job?
well, it depends. If you want to do trading as an alternative to a 9-5 job,
it might not happen. Fascination doesn't get you anywhere.

:-(

Originally Posted by d0n »

I would like to ask for advice on how to become successful.

I am part of a little commodities trading group, where two succesfull mentors are teaching their strategy. It seems to be a great working strategy, but the problem is that the specific occasion occurs only 2-4 a week. (it is a special kind of bar, specific point on the CCI, eventually the MACD). It is very difficult to be watching the graphs for several hours a day and wait for it to occur only 2x a week and thus makes it actually quite difficult. I would like something that I can do more actively, rather than be the hunter who waits for his prey for hours/days. Also, I understand that the commodities market can be riskier for a beginner. (even though I only try to start with eminis).

I am also curious to start with stocks now.
I talked to a good trader who recommended me that I could start with two things,1. look at the stocks in let's say NASDAQ that do the best or the worst in the first 4 minutes after the market opens. They should gain or lose at least 4%, then either buy or sell them and hold them for a few hours. Do this with 2-3 stocks.

2. use a slow stochastic (80 and 20), 3 MAs (20, 50, 200) and based on those enter trades. If the stochastic is over 80 then sell, if under 20 then buy. Also based on the 20 and 50 MAs to cross and follow the trend by the 200 one.

Does any of this have sense? would anyone improve that?
Where do I find good live stocks chart data for free to start with?
How do I find a working strategy for myself in the neverending amount of information that there is out there?

I plan to start with approx. 2000-3000 USD.

Thanks for the help.

[ratmpower]

Day trading is very tricky. I would not recommend day trading if you are just starting out with strading stocks mainly because of the following two reasons:
1. There are additional requirements for day trader
2. Day trading strategy requires very recent market data and lots of computing power, because you have to make buy/sell decision very fast. If you are 5 minutes late, your previous computation becomes obsolete very quickly.

I would recommend short-term trading strategies where you try to close your position in weeks/months rather than in the same day.

As far as resources go, there are plenty out there for free.
For chart and market data: yahoo finance, google finance, FINVIZ.com - Stock Screener are good.
For developing and testing your strategy, http://www.strategyard.com/ is very good.

Good luck

[d0n]

I'd rather get paid individually for my efforts and not based on an hourly pay that an employer gives me.

Well so where would I find good resources for weekly/monthly in and exit strategies?
So that I could start working on the psychologic aspects, be disciplined and eventually make it somewhere? If you're saying that daytrading doesn't have sense for me.

[wrbtrader]

Originally Posted by d0n »

Hi everybody,
first of all, I am fascinated by the world of trading. I see a lot of potential there. I've never been the kind of person who would think that a 9-5 job is the way to live well.

I would like to ask for advice on how to become successful.

I am part of a little commodities trading group, where two succesfull mentors are teaching their strategy. It seems to be a great working strategy, but the problem is that the specific occasion occurs only 2-4 a week. (it is a special kind of bar, specific point on the CCI, eventually the MACD). It is very difficult to be watching the graphs for several hours a day and wait for it to occur only 2x a week and thus makes it actually quite difficult. I would like something that I can do more actively, rather than be the hunter who waits for his prey for hours/days. Also, I understand that the commodities market can be riskier for a beginner. (even though I only try to start with eminis).

I am also curious to start with stocks now.
I talked to a good trader who recommended me that I could start with two things,1. look at the stocks in let's say NASDAQ that do the best or the worst in the first 4 minutes after the market opens. They should gain or lose at least 4%, then either buy or sell them and hold them for a few hours. Do this with 2-3 stocks.

2. use a slow stochastic (80 and 20), 3 MAs (20, 50, 200) and based on those enter trades. If the stochastic is over 80 then sell, if under 20 then buy. Also based on the 20 and 50 MAs to cross and follow the trend by the 200 one.

Does any of this have sense? would anyone improve that?
Where do I find good live stocks chart data for free to start with?
How do I find a working strategy for myself in the neverending amount of information that there is out there?

I plan to start with approx. 2000-3000 USD.

Thanks for the help.

1) Trading as a newbie will be a lot more difficult and require more time & energy than most 9 to 5 jobs. Thus, its not going to get easier...professionally and personally for a long time during the first few years.

2) You're part of a trading group that has two successful mentors teaching you their strategies along with you having a support group (trading group) and you want to instead try something else that will require you to start from scratch.

3) You've been talking to a good trader that's giving you advice about his/her method involving stocks. Yet, you're now asking others if the method recommendation by that good trader makes sense.

4) You're undercapitalized. Save your money and only simulate trade and backtest the new method you plan on designing until you have enough money that equals a minimum of one year salary of your current job.

5) Your questions involving data, software et cetera are newbie questions and I highly recommend you aim them at the two mentors you're currently have or at least learn how to use Google (its all there). In addition, I highly recommend you don't abandon something that's already working well. Thus, when you're properly setup with capital...add day trading to what you're currently learning from that trading group instead of using day trading to replace it.

Learning how to trade profitably is not all about a trade signal. Simply, those profitable mentors you have will be able to teach you things that's arguably more important than a trade signal assuming you don't get lost trying to do something else.

[MCM]

"It is very difficult to be watching the graphs for several hours a day and wait for it to occur only 2x a week and thus makes it actually quite difficult. I would like something that I can do more actively, rather than be the hunter who waits for his prey for hours/days"

Print that statement out. Show it to your current mentors. Really think about what you are saying.

"It is very difficult to watch the squigglies for hours on end, only for an opportunity that comes around 100X/year, and makes the people who I am learning for lots of money. Instead I would prefer to pay more commissions to my brokers, learn something entirely different than what my mentors are teaching me, and not wait around for stellar opportunities, but click a mouse button more frequently"

You have a huge advantage over most new traders - you were taught patience out of the starting gates. Your way ahead of the curve. Have your mentors help you understand that advantage and further encourage it. Congrats. It was one of the harder lessons I had to learn. Enjoy the stalking.