[HighStakes]

Hello everyone,

It`s been written and recommended several places that for the new day trader it is smart to focus on trading just one single market: learn everything about it, become one with it and master it.

This has made perfectly sense for me in theory, but now that I`m in the practical process of choosing a market to trade (and paper trading), I have a hard time to decide which market to choose.

Actually, the idea of day trading a handful of markets seems more appealing to me right now. One obvious benefit I see is that by trading several markets, it may be easier to not overtrade since you most likely will get more high-probability set-ups. When one market may look hard to trade, the perfect set-up may materialize in another market.

If I had to choose a single market though, I have to say that I have really started to enjoy crude oil lately.

Appreciative of any advice on the subject.

Best regards,

HighStakes

[brownsfan019]

There is no perfect answer to this question.

Some things to consider...

> If trading manually, how many can you watch at once easily?
> Will margins become an issue?
> Do you get 'enough' trades in 1 market or do you need more markets due to the restrictive nature of your trading plan?

For example, I will watch many markets but currently only trading oil. Reason is that the moves are very conducive to my trading and it's easier to place trades on 1 market. As long as oil keeps working for me, I will focus my energy there.

If I was trading a system that might have 1-2 trades a day, I would most definitely be looking at many markets.

So I think it's really a function of how many trades you can expect per day. If it's greater than 5, 1-2 markets would be plenty in the beginning.

[MadMarketScientist]

I'm with Brownsfan on this one -- I do think frequency of trade plays a part. I would climb up the walls if I was trading only one market and it traded 1x to 2x per day. I simply don't have the patience for that. You need to know yourself.

With that said, I'm a big fan of following only 1 or 2 markets if you can get the frequency part down.

I think the markets where you can find some of the better activity are Crude Oil that you mention (though since the BP oil issue there has been less movement and volatility - and there are some theories why including BP traders leaving the company who were amongst the most active CL traders but that's another story), and I also think the Russell e-Mini (TF) and Nasdaq e-Mini (NQ) can be good choices depending upon your margin available.

While I feel forex can provide some great trading opportunities I don't typically see it trade very quickly except in spots, and therefore you might want to consider multiple markets if you're focusing just on forex but the challenge if daytrading is finding the ones where the bid/ask is narrow enough -- and realize you'll be putting in more time I think than some of the futures above.

You could trade the CL from 8:50am EST to 10:30am EST (except Wednesday with the Crude report) and never need any additional time for example.

[HighStakes]

Thanks guys,

May I ask which other markets you are watching, brownsfan019? And how many trades do you usually average per day in crude oil?

I`m not looking to place several trades simultaneously, so margin will not be an issue.

I may consider trading one index in addition to crude oil. I don`t like that I can`t trade during the opening hours of the US session, especially with regards to crude oil, but I have to work with what I`ve got I guess

[Justaguy]

I'm with the other posters. Frequency of trades is a huge factor in determining how many you can watch. One thing you don't want is to be watching too many and having to chase entries simply because the markets are too fast.

I don't know if I ever totally became "one" with the market. There are far too many influences on the day to day movements. Far beyond what I could ever fully grasp. I have heard as well to learn how the market moves.....etc. The only problem I see with that is that you'd need the same market participants and variables over and over again. Add or subtract a variable and the ball game can change. For me, I have a trade setup that I look for. Trades goes on. Trade is managed to target, break even or loss. Nothing more complicated than that.

[JohnnySDG]

Originally Posted by brownsfan019 »

...... As long as oil keeps working for me, I will focus my energy there.......

Focus my energy there? Pun intended?


High Stakes, since you are new to trading you should focus on one market. Even if you have 1 trade per day.

Remember, you are new and you should hone your skills in one market. You are trying to learn to trade as much as you are trying to make money.

Another important issue to note is how much you make per trade. It is better to make one solid trade with a good profit than several scalps. That leads to money management.....

Risk-Reward scenarios and position sizing are more important than your trading methodology.

Lastly, trading crude is really going right into the lion's den. But, you can have some great trades. Proceed with caution.

Best of Luck,
Johnny

[metatron]

Highstakes, your in the identical position to me and it is incredible just how much stress choosing markets and a timeframe can be! I've been trading three years and I still haven't decided what markets and timeframe I'm going to stick with!

I think the general delimma is: do you apply one setup to many markets or do you apply many setups to one market(or simply one setup for one market).

I've recently completed(wasted?) three months research on a swing trading system based on EOD signals which had good results but when it came to pulling the trigger on it I just couldn't do it because I didn't feel comfortable with the system when it came to real money.

Now my natural inclination is towards scalping but the problem I have with this is the setups I use only produce 1 to 2 trades per day max and if I literally don't stare at the charts all day I will miss them and if I do miss them I'll flip out and turn into the angry trader which doesn't help matters.

I know I get mentally tired really quickly watching more than one market so I think energy conservation is a factor that must be considered.

Either way choosing your market(s) and your timeframe are the most important factors in trading and once you've found them then trading should really become boring repeating the same setups in the same markets albeit hopefully profitable. Easy to say but very, very hard to do.

[JohnnySDG]

Metatron, scalping is a receipe for disaster.

Slippage and commissions will melt your capital like a snowball in Miami.

Newbies have to remember 1 thing - Not only do >95% of all people lose money trading....but that 95% includes the people that claim to make money.

I said this in another thread and I'll repeat it here. This "full time trader" idea is a fantasy. Its like playing pro sports, some will but most wont.

Figure out a way to make a return on your capital.

I'm willing to help out those who ask me. I don't sell anything and I ask for nothing in return. I've been trading over 20 years and find the "I don't give out my secrets" line to be a pile of crap. Trading is mostly about money management more than some "secrets of the pros".
Fact is most people would lose money even if the best traders in world sat next to them and taught them for six months. If Eric clapton gave you 2 years of guitar lessons you still wouldn't be Eric Clapton.

Now, with all that said, It is possible to make a good return on your capital. If you still think you can become rich trading full time then good luck. But, if you want to learn some trading reality I'm happy to help.