[mike21]

Originally Posted by metatron »

When you say you are now an active trader I really hope you haven't quit your job to trade full time.

The score is this - to become 'reasonable' at day trading will take you 3-5 years(at a minimum) full time trading with real money to find your style that you are psychologically suited to of course this takes resources in and of itself not to mention lost earnings if you quit your job.

The best advice I can give you is:

1. To trade technically off price action.
2. To read books but NEVER follow what they say just incorporate bits into YOUR style.
3. To trade using EOD signals, stop-limit orders and continue working your day job(once profitable here consider day trading).
   
4. Remember that lots of pro traders risk 2 to make 1 the opposite of what newbies do and still make lots of money.

The total cost to me to learn day trading was £200,000 which included lost earnings as I dedicated night and day to trading which was a huge mistake, I really should have swing traded to start as I would have learnt how to trade just as quick and been much richer for it.

Good post...

Although I don't think #4 is good advice, especially for someone new to trading.

.

[metatron]

It's all horses for courses at the end of the day just use whatever works for you.

[wwalker126]

I agree. You have to find out what works for you. But you'll never know unless you actually research, strategize and test. Then you'll find out what works for you.

[MadMarketScientist]

Fascinating thread - kinda of a duel discussion on the specific housing sector stocks which in itself is full of intrigue, and then how best to leap into trading successfully (or minimize the pain)

What I would say on the housing discussion is if I was thinking about fundamental trading -- and I'll preface this saying I'm a 100% technical trader since I just don't think I'm smart enough to really analyze the thousands of different datapoints in an industry. But, with that said if a housing stock company had a portfolio that included homes in the more solid areas of the country I would have an interest.

I can speak from some recent experience. Having sold a home recently in California, having purchased one in Texas. Also the same goes on a rental property in California.

If a homebuilder has a focus on the 250K - 500K part of the market in places, like Texas it is still quite strong. I know people getting multiple offers if you believe that - however when it advances above that price range it gets VERY slow. Yes, you are competing against foreclosures, etc... even in the lower range but those can at times be a real pain and people who price right, in a good market are moving. If I saw a builder who was representing this range and was not heavily invested in the areas that were part of the mania (California, Florida, Nevada, etc...) I think prospects are going to improve.

Like an above poster said the system is still in for its shocks but to me the bottom is already in in the stronger markets and actually probably 20% - 25% off those lows.

That being said, I wouldn't do anything personally unless the technicals that I would trust/follow led me to buy but even someone like me who is 100% technical likes to know the reasons behind the move as well. Or it gets boring.

MMS

[wwalker126]

Mad,
I couldn’t agree with you more. If it’s not technical then I want to see first-hand the reasons behind a move. With that said, I am strictly interested in technical analysis trading. All, I mean all my trades derive from technical analysis. I bet many would agree with me when I say, It’s always great when a technical trade turns into reality news. In regards to the housing market, I have “read/heard” that the housing companies will start aggressively promoting the idea of BUILDING A NEW HOME to potential homebuyers. Let’s see how that play out in the months to come.

[Pluto1618]

Hi W. Walker.

One thing I would recommend VERY strongly is to WRITE YOURSELF A TRADING PLAN!

Yes, I was shouting.

90+% of all traders lose money.
90+% of all traders do not have a trading plan.
You do the math.

IMHO your odds of being successful without a written trading plan are almost nil.

I wish you the best of luck. But it won't help without a trading plan!

Pluto1618

[wwalker126]

Pluto,
Thanks for your advice. As you and many experienced trader have said to me, having a trading plan is crucial. However I have learned that some concepts you come up with may work for you and not work for other; or vice versa. Whatever your strategy is, technical or non-technical, long-term or short-term, whatever it is just make sure it works for you. You should be in control of your money whether it increases or decrease you should only be able to blame yourself for the outcome.

*Side note* my 1st trade has done well and continues to do well.