Newbie looking to start trading

[creso]

Hello,

I ran across this forum and had a chance to read some of the articles and view the trading videos posted here. I have to say they were very helpful. Im still debating if I should learn Forex or stick to the e-mini's.

I am looking for some trading advice that can help me get on the right path. I am currently testing out some indicators with the EMA, ADX, and Stochastics. They seem to work very nicely in hindsight. However, I noticed that soultrader does not use any indicators. Is it possible to trade without any technical inidicators? If so, how would I look for trade signals?

Thank you,

Creso

[Soultrader]

	Quote:	creso
	Hello, I ran across this forum and had a chance to read some of the articles and view the trading videos posted here. I have to say they were very helpful. Im still debating if I should learn Forex or stick to the e-mini's. I am looking for some trading advice that can help me get on the right path. I am currently testing out some indicators with the EMA, ADX, and Stochastics. They seem to work very nicely in hindsight. However, I noticed that J.Lee does not use any indicators. Is it possible to trade without any technical inidicators? If so, how would I look for trade signals? Thank you, Creso

Hello, and welcome to Traders Laboratory. Always happy to hear from a new trader seeking for advice. My advice for you right now is to stop whatever it is your studying. Unlearn and learn. If you become too indicator dependant you will never learn how to trade properly. On top of that you will waste time and money. From my personal experience I find indicators useless. Price action is king. Learn to trade price and not the indicator. That being said, I highly recommend you read books on tape reading, pivots, and market profile. I prefer to use methods not vastly used by the trading public. If you need some recommendations, check out the book review forum. I will be updating the forum hopefully on a daily basis.

Good luck on your journey

[Lisa]

Hello Creso and welcome aboard

Automated systems that make money do exist. But many are trend following systems. The markets will only trend 30% of the time so its good to know trading setups for a rangebound market as well.

Here's an article I just recently picked up. It has some nice trading tips for a beginner.

Forex and Foreign Exchange - Trading with Strategy

[specmav]

While not a substitute for experience, I would read as many books on trading as possible. This way you get a wide variety of ideas about trading. Some are good ideas and some are bad. You just have to learn how to tell them apart.

I would pick up Winning on Wall Street as a primer on the subject.

[creso]

Thanks specmav.. I will check that book out. How many books have you guys read on trading?

[Daniel]

	Quote:	creso
	Thanks specmav.. I will check that book out. How many books have you guys read on trading?

I have read about 8 or so.

Theres alot of useless books out there in the market. Make sure you read the reviews and find what you need. Some can be challenging while some are geared towards newbies. Good luck

[Soultrader]

I have read approx 150 books in trading, investing, trading psychology, NLP, etc...

I have found 75% of them to be useless. However, if you are able to dig out one useful paragraph or line in a book, I find it well worth my money. Alot of tradings books can be overpriced. I suggest you visit amazon. I bought most of mine second hand.

Also like Daniel said, make sure you review each book before you buy them. While some traders find what they are looking for you may not. If you need some recommendations feel free to ask me.

[luke24.5]

All indicators that I know of lag the market. They measure what has happened over a specific time period. Some people can trade using them and make money. However, I think it best to observe the market with one's own eyes and learn to read orderflow. Of course you'll have to invest some money in datafeed, charting and a good simulator. But the money you invest will most assuredly be less than you would lose by trading real money not knowing what you're doing.

My suggest reading: 1. Support and Resistance simplified by Thomsett,
2. Mind Over Markets, Dalton, Jones & Dalton.
Also, any of the classic work by Schabacher, Wycoff, Edwards & Magee etc you will find helpful.

After you grasp the fundamentals of how the market auctions through market profile and understand the basics of S/R, then practice on the simulators. If you can't make money consistently on a Simulator, you certainly can't trading real money. The key is to trade the sim as if it is real money. Never allow yourself to make exceptions. In this way you train your emotions too.

[Daniel]

Do you know of any good simulators? By this you mean demo account with real time data? Thank you

[luke24.5]

Yes, that's what I mean. You'll need to fund an account probably. Though you may find one you can use for 30 days otherwise. TradeMaven, Trade Navigator with a TransAct datafeed is what I use. Cost is $49.00 month and come with historical and real-time data, charts etc. Ninja Trader is good and works with many datafeeds. You can get free Volume profile info at Chart-ex.

I agree with soulman that Support and Resistance or pivots should be a better starting point than indicators.

Be prepared to study diligently for a good while just like any whorthwile vocation.