[matinthehat]

Hi,

I want to start to trade soon. But i need some advice on software, brokers, and data feeds. I will be trading just the YM to start. What market internals should i look at, which ones in your experience have helped you the most? I was reading Mastering the Trade by John Carter and he recommends the Trin, Trinq, Tick, Tiki, put/call ratio, and the sector sorter list. Also, how could i use these internals all at once in order to confirm whether i should just focus on long or shorts? Also, what hardware do you recommend i get and how should i setup and distribute my software on the screen(s)? These might seem like some idiotic questions but i need some help from some traders with experience. Thanks.

[brownsfan019]

I have one suggestion for now - find a good paper trader (simulator) and test your ideas out there. While your post was small, it's loaded with 'how do I do this' questions and you have just barely put your foot in the shallow end of the pool. It's got a tiny, tiny drop of water on it. You can choose to slowly test the water or dive into the deep end and see how it feels.

This forum has good info everywhere, so click around and spend some time reading.

[Soultrader]

Originally Posted by matinthehat »

Hi,

I want to start to trade soon. But i need some advice on software, brokers, and data feeds. I will be trading just the YM to start. What market internals should i look at, which ones in your experience have helped you the most? I was reading Mastering the Trade by John Carter and he recommends the Trin, Trinq, Tick, Tiki, put/call ratio, and the sector sorter list. Also, how could i use these internals all at once in order to confirm whether i should just focus on long or shorts? Also, what hardware do you recommend i get and how should i setup and distribute my software on the screen(s)? These might seem like some idiotic questions but i need some help from some traders with experience. Thanks.

Have a look around the boards first because all answers to your questions can be found here. You need to be careful by applying strategies that you read in a book live. Test them out and make sure you have a profitable strategy. Techniques get outdated... and certain market internal strategies may no longer work. So once again, test it and then apply money management techniques into it.

One honest opinion.... your question regarding whether to use internals to confirm a short/long. This tells me right away that you should not be trading live yet. You will just be gambling away your money if you relied on these tools without any structure to your trading. Try them out first.. find what works for you, apply them to a strategy, test it. If profitable, apply it live.

Also for hardware, I run a 4gb Vista Core 2 Duo. Works for me.

[MC]

Most that books tactics are heavily dated.

This volatility we have going on will demolish most newer traders without a sound mind, deep pockets for wide stops and/or great entry skills.

Definitely not the best environment to be tinkering with live. I 2nd the sim trading thing heavily!

[sdoma]

Originally Posted by matinthehat »

Hi,

I want to start to trade soon.

Here are a few steps you should take, in handy list format, before you trade live:

1. Educate yourself: Think about it this way, would you take Muay Thai classes for two weeks and compete in the Ultimate Fighting Championship? No, of course not, you'd get murdered. You need a complete, well rounded skill set to compete with trained professionals who've spent years honing their skills.

I recommend you read books that will help you to think about markets, understand how they move and operate, rather than just a system or a book about one small feature of the market. The last thing you should do is take a simple system or methodology and just start trading. You must UNDERSTAND what you are doing and why. You need a good cognitive framework to understand the market.

I, personally, recommend you read Mind Over Markets and Markets In Profile, and then come here and discuss them with us. Also, go to www.traderfeed.com. Brett Steenbarger has a free e-book on teaching yourself to trade that is awesome.

2. SIM, SIM, and then SIIIIIIM: Before you go live, you need to know you have a set methodology that works and that you can execute it in real time. Be strict with your risk/reward parameters and stops. Make it as realistic as you can. KEEP RECORDS. I can give you spreadsheets if you don't know where to start. Keep track of your performance.

3. Start with twice as much money as you think you need and half the size: Seriously, this stuff ain't as easy as it seems. SoulTrader and the crew just make it look that way because they'z pimps and stuff. Chances are you'll have your bumps and tuition payments along the way and you don't want to be taken out of the game before you get rolling.

4. Don't discount costs. Understand your costs going in. That means your computers, monitors, data costs, charting, exchange fees, commissions, rent, drinking money if you're into that kinda thing, whatever. You never ever want to feel like you HAVE to make money today or you can't pay your rent/child support payments/Mongo the Loan Shark.

[Soultrader]

Originally Posted by MC »

Most that books tactics are heavily dated.

This volatility we have going on will demolish most newer traders without a sound mind, deep pockets for wide stops and/or great entry skills.

Definitely not the best environment to be tinkering with live. I 2nd the sim trading thing heavily!

Great point. With the current volatility, the 1 lot trader is having the hardest time. For instance, my position size is half at the moment but using a wider stop and wider target. The 1 lot trader does not have this luxury to practice sound money management.

ES is extremely volatile now... price can easily jump 3pts against you before moving in your favor. If your typical stop is 2pts.... you are likely to get stopped out the moment you enter.

And talk about great entries... if you can take less than 1 pt of heat, you are absolutely amazing.

[brownsfan019]

Don't want to take this thread off topic, but have you guys looked at the Stoxx as a possible market to trade if the ES is too jumpy for you? I've been trading more there recently b/c for me at least, respects levels and so forth a little better. It's incredibly deep and liquid, which is nice too. Commissions also a lot lower than the ES.

[firewalker]

Originally Posted by Soultrader »

And talk about great entries... if you can take less than 1 pt of heat, you are absolutely amazing.

You should come to the chat room more often and check out the traders who use <1pt stops