Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

bootstrap

I Look Back Now and Wonder

Recommended Posts

Well, this is the real wonder here. Unlike medical or law school, you know when you will graduate in certain amount of years. The real wonder in trading is that you don't know when you will graduate. My question to all of you is how do you keep the faith and keep on running when you don't know how far you are from the finish line ?

 

I feel what may be most important, besides the belief that you were borned to do this, is to be inspired by a higher power. Men through out history have accomplished extroadinary feat of achievement because they had believed that this was their calling.

How do you keep the faith when you don't know how far the finish line is ? Well you must enjoy the process, which means continual of study and research and practice on your demo account in your spare time even though you have just blown your live account . If you don't enjoy the process ? Then perhaps trading is not for you.

If you truly enjoy the process and you know in your heart that this is your true calling, then you shouldn't have to ask yourself if you would do it all over again. Right ?

Edited by OAC

Share this post


Link to post
Share on other sites

What's your plan when those thins happens ?

 

Great post.

 

I think it's important new traders (and old traders) realise how much there is to do for point #4.

 

Do you have an plan for when your trading software goes down?

What about when the exchange goes down?

Do you know how to hedge your trading instrument/size and do you have the excess capital available to?

Do you have another brokerage account if you can't access your current one?

PC Crash?

Internet Crash?

Your local phone exchange crash? (Yes, I actually have had that happen, and yes I was in a position.)

Power outage?

Godzilla?

 

You get the drift.

Share this post


Link to post
Share on other sites
What's your plan when those thins happens ?

 

Do you have a plan for when your trading software goes down?

I have subscriptions to CQG, Esignal & Ensign Software.

What about when the exchange goes down?

I have accounts with different brokers & clearing firms to be able to hedge any open positions in a correlated market on a different exchange. I.e. CME, EUREX, SGX, etc.

Do you know how to hedge your trading instrument/size and do you have the excess capital available to?

I know the equity / ratio requirement to hedge positions in the markets I trade.

Do you have another brokerage account if you can't access your current one?

I hold accounts with Infinity Futures, Interactive Brokers, MFGlobal.

PC Crash?

I have two desktops & a laptop.

Internet Crash?

I know how to access my brokers via telephone and what to say.

Your local phone exchange crash? (Yes, I actually have had that happen, and yes I was in a position.)

Again, I know how to access my brokers via telephone (Mobile) and what to say.

Power outage?

Same again, Mobile phone access.

Godzilla?

This one.. I'm still working on.

Share this post


Link to post
Share on other sites

Bootstrap,

 

you mention that you turned profitable during 1999. Not to challange your methods but wasn't everything in 1999 going up. Did you same insights and techniques work during late 2000 through 2002? I've been trading or over 10 years and have had great years and bad years. This last month caught me by surprise and turned all my profits into losses. I'm finding it hard to walk the line between trading and investing. Fortunately I started moving more towards cash a couple months ago which protected me a lot from the recent sell off. Best or luck and thank for sharing.

 

-bsll113

Share this post


Link to post
Share on other sites

Yes pretty much everything was going up.

 

In 1999, I was and still am trading currency futures exclusively. I have not had a losing month since. Yes, I still have down days and even weeks on occasion.

 

It is not the method. It's the trader that makes the difference.

 

As for long term investments, yes this portion will show a loss. But the strategt is designed to take advantage of falling markets.

 

The hardest investment rule is:

 

If 95% of traders/investors lose money, then do exactly the opposite of what they are doing when they are losing.

Share this post


Link to post
Share on other sites

Thanks Null,

 

I've actually started buying up some speculative stuff lately. It's Probably a little premature to start buying already but I like the odds. It's likely that we are far from seeing the worst yet though. The market is going to a roller coaster for for quite awhile.

 

-bsl113

Share this post


Link to post
Share on other sites

7)Paper trading is ok, but there is nothing that truly tests the strategy like hard earned cash.

 

I guess I would like to go off on this point, because I really don't understand why "conventional wisdom" is so against paper trading.

 

I thought it was cool to see around the blog/message board trading world in the past few weeks the idea that you need 10,000 hours and or 10 years to become a master trader(something that was posted here well over a year ago) is making its way around.

 

Yet "conventional wisdom" tells the fool who comes to this game expecting to make millions overnight that they HAVE to risk their hard earned cash or they are wasting their time. A fool losing hard earned cash does not make them less of a fool, the only way a fool becomes less of a fool is from time and trades to get a feel of how the market breathes.

 

You need rule #11...go on the 10 year plan.

I have 4 years market experience, 3.5 trading real money but I mark my real march towards becoming a master trader as starting last january, so I don't even consider myself to "actually" have a year of experience yet. Last january was when I started trading futures with real money, had read every book, digested ever idea I could think about the past 3 years.

So far this week I've taken 3 real money trades and 94 paper trades. My avg hold time on my real money trades are 2.3 minutes...if you trade real money with patience you have to do something with your time, what better to do than experiment with paper trading?

Basically, I don't think the problem has anything to do with paper trading...Its simply 99.9999% of people do not take this business as serious as they HAVE to. The only difference to me between a paper and a real money trade is the confidence I have in the setup.

If I wanted to be a boxer or MMA guy, I want to have thousands of reps in practice before I have to throw a strike in a REAL fight.

Share this post


Link to post
Share on other sites

Darth,

I agree with your reasoning. I've been trading 12 yrs and still paper trade before I risk the real stuff. There are definitely different emotions when the green is on the line, but there's plenty of other things to learn without risking the money first.

It kind of makes me wonder who "conventional wisdom" is... probably a self imposed moniker???

Share this post


Link to post
Share on other sites

About dedication to this business, I actually predate many of you doing this, I guess. The post was well put and applies to any form of trading, actually.

 

Back when the PC was considered an expensive toy, dedication in trading meant standing still in a sweaty, crowded pit and getting poked by sharp pencils. It meant dealing with "pit politics", losing your place on a step, constant flu and getting colds from being with a few hundred of your "best friends" and spending the wee hours updating charts with pencils and rulers.

 

Markets have good and bad times. I got started in the 1970s and today's "problems" and market swings are no different than back then. The trader divorce rate was no different and moment of silence on the floor for colleagues who had committed suicide happened then, just like now.

 

Markets trend, sometimes they don't. Big fish sometimes become bigger, sometimes they fry. What markets pay attention to changes over time, and sometimes it all goes full cycle. Governments over-regulate, under-regulate, and then go through the same cycle all over again.

 

If you've ever read "Reminices of a Stock Operator", you'll know what I am writing about. Trading becomes all the rage, then it becomes the "cause" of all things evil.

 

Good thing I kept learning about IT during this whole process. Pushing a mouse may be less difficult than standing on a step for seven hours, but controlling emotions is just as challenging.

 

Finally, schlocks selling trading systems have been around for a long time. Learn your own way and planning what you'll do and how is the best advice of the post.

 

Enjoy the ride.

Share this post


Link to post
Share on other sites

well, for me this seems like a open source for many people to start on this business. I started with my account and many friends and relatives have been asking about how this works, even if they don’t have idea about currencies and stuff. There are many things involved on this market

Share this post


Link to post
Share on other sites

I've been reading posts of this site and have been able to gleen from others words and experiences. Just not enough to allow me to open my own account and risk my own money. Even paper trading is scary for me as I don't know where the heck to begin! :confused:

Surely, there is a humanatarian somewhere across the USA that is willing to aid those who want to learn. A classroom setting would be great! I'm NOT purchasing another "I'll teach you to trade" course. :doh:

Share this post


Link to post
Share on other sites

Hi Bootstrap

Very honorable of you to reveal your struggles. I am at the starting gate in trading. Sold my property, moved away from everybody (NY to Las Vegas) and sit and study solid. It has been 2 months now and have tremendous amount of info and still feel like I know nothing. I have been practice trading the Q's (qqqq) with options. This is what I learned at first. Getting ok with understanding candlesticks, being able to get out of a trade moving against me (paper trading). Just funded an optionhouse.com account, but use another program to watch the charts and the option movement. At the same time I have been looking at the Forex. I have been drawn to added programs that claim to make you money. A lot of them seem to be Meta trader Add ons. One that is very different is Wave59.com, adding intraday predetermined patterns using astrology. Pricey, though. Being a visual person, I like dynamic charts that I could trade on in Forex. I invested in Visualtrader and got an IQfeed for it. I like it, not sure how much it will really help me in the end. I tend to overdo it in the charts and programs right now, but I like to see everything before I decide. Out of that kind of research, free useful info came as well. The best economic calendar I found so far is http://www.forexfactory.com/calendar.php?do=geteventinfo&day=2009-3-10&c=2

Out of researching Forex, got help for equities as well. On trying to decide which broker to use, Still at a loss. ECN's MM, and the rest. These are the two most exstensive sites so far: http://www.goforex.net/forex-broker-ratings.htm and http://www.forexfactory.com/brokers.php The rest I saw in various Blogs.

 

QUESTION..... ANY RECOMENDATIONS ON A WHERE TO TRADE FOREX AND WHAT PLATFORM TO USE?

 

I know you said the add ons are a waste of money. Nothing useful?

 

Thanks again Bootstrap and anybody who will reply.

If you are trading the Q's (qqqq) options, and want to interact on this, let me know.

 

 

Success to all

Todd

Share this post


Link to post
Share on other sites

Regarding how to succeed. I can't agree with the not paying for a system. I think if someone who is succesfull wants to teach their success it will be cheaper to pay for their mentoring rather than learning the hard way. I think a mentor would be the best way to learn.

Share this post


Link to post
Share on other sites
Regarding how to succeed. I can't agree with the not paying for a system. I think if someone who is succesfull wants to teach their success it will be cheaper to pay for their mentoring rather than learning the hard way. I think a mentor would be the best way to learn.

 

My 2 cents - try to find a trader who is willing to let you look over their shoulder, and even if there is a small fee, that would be worth its weight in gold. Don't buy into a system or method until you have had a chance to look it over and see if it fits your mindset.

Unfortunetly, beginners have the hardest time with this, so I suggest that beginners SLOW DOWN and take your time and do a lot of sim test work before you plunk heavy duty money down on any system or method. The best method is still keen, slow, documented, careful observation of the market with just a few tools that give you the primaries - price, volume, momentum. Add some basic S&R and in IN TIME you can formulate your approach using careful documented conclusions. The key words are SLOW DOWN IN TIME. IF you do not have the time, then buying a method or system is just one option.

The other option is to join a trade room and learn from the lead trader - again - it is a watch over his shoulder approach, but much less costly. A good trade room should not require you to purchase their indicators. Eventually, if you see the value in it, then you may decide to purchase them only after seeing them in action by someone well versed in their use in the live market.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Date: 29th March 2024. GBPUSD Analysis: The Pound Trades Higher But For How Long? The global Stocks Markets are closed due to Easter Friday (Good Friday). The NASDAQ continued to follow the sideways trend while other indices again rose. The SNP500 reaches an all-time high, but the NASDAQ remains under pressure from Tesla, Meta and Apple. The Euro continues to trade lower against all major currencies including the US Dollar, Euro and Japanese Yen. The British Pound is the best performing currency during this morning’s Asian session. However, investors are largely fixing their attention on this afternoon’s Core PCE Price Index. GBPUSD – The Pound Trades Higher but For How Long? The GBPUSD is slightly higher than the day’s open and is primary due to the Pound’s strong performance. At the moment, the British Pound is increasing in value against all major currencies. However, the US Dollar Index is also trading 0.10% higher and for this reason there is a slight conflict here. If investors wish to avoid this conflict, the EURUSD is a better option. This is because, the Euro depreciating against the whole currency market avoiding the “tug-of-war” scenario. The GBPUSD is trading slightly lower than the 2-month’s average price and is trading at 49.10 on the RSI. For this reason, the price of the exchange is at a “neutral” level and is signalling neither a buy nor a sell. The day’s price action and future signals are possibly likely to be triggered by this afternoon’s Core PCE Price Index. Analysts expect the Core PCE Price Index to read 0.3% which is slightly lower than the previous month but will result in the annual figure remaining at 2.85%. The PCE rate is different to the inflation rate and the Fed aims for a rate between 1.5% to 2.00%. Therefore, even if the annual rate remains at 2.85%, as analysts expect, it would be too high for the Fed. If the rate increases, even if only slightly, the US Dollar can again renew bullish momentum and the stock market can come under pressure. This includes the SNP500. Investors are focused on the publication of data on the UK’s gross domestic product (GDP) for the last quarter of 2023: the quarterly figures decreased by 0.3%, and 0.2% over the past 12-months. This confirms the state of a shallow recession and the need for stimulation. The data, combined with a cooling labor market and a steady decline in inflation, increase the likelihood that the Bank of England will soon begin interest rate cuts. In the latest meeting the Bank of England representatives did not see any members vote for a hike. USA500 – The SNP500 Rises to New Highs, But Cannot Hold Onto Gains! The price of the SNP500 rises to an all-time high, before correcting 0.33% and ending the day slightly lower than the open price. Nonetheless, the index performs better than the NASDAQ which came under pressure from Tesla, Meta and Apple which hold a higher weight compared to the SNP500. For the SNP500, these 3 stocks hold a weight of 9.25%, whereas the 3 stocks make up 14.63% of the NASDAQ. The SNP500 is also supported by ExxonMobil’s gains due to higher energy prices. The market will remain closed on Friday due to Easter. However, the market will reopen on Monday for the US and investors can expect high volatility. Investors will also need to take into consideration how the PCE Price Index and the changed value of the US Dollar is likely to affect the stock market next week. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Michalis Efthymiou Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • MT4 is good and will be good until their parent company keep updating the software, later mt4 users will have to switch to mt5.
    • $SOUN SoundHound AI stock at 5.91 support area , see https://stockconsultant.com/?SOUN
    • $ELEV Elevation Oncology stock bull flag breakout watch , see https://stockconsultant.com/?ELEV
    • $AVDX AvidXchange stock narrow range breakout watch above 13.32 , see https://stockconsultant.com/?AVDX
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.