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TheNegotiator

Considerations for a Wannabe Trader...

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Isnt it amazing, and thats putting it mildly. If you wanted to be a Fast Food Mgr. I would tell you simply to just start off taking any job in Burger King or McDonalds. You want to be a car mechanic? Easy. Just take a cvourse in auto mechanics for the common mechanic, maybe go back to college to specialize. Oh, you'd like to be a policeman. No problem. Get into reasonable shape,act cordial and helpful and after you pass the test you WILL be called sooner or later and your dream of a steady job with the best benefits in the world is yours. Now we get harder stuff. Want to be a writer. 2 choices: Just submit a lot of articles to Blogs, Magazines both on and of the INTERNET, and you will get noticed if you have any talent at all. Want to be a Real Estate Speculator? Just start off as a R.E. Broker,and keep your eyes open for good deals.

 

But you say you want to be a trader and consistantly make money every year, even every month for the rest of your life. What is the path? Hmmmmmmmmmmmmm...I have the answer-There is none! You can read all the books in the world until they have overlapped with the same information 5x and all youll get is common sense things about having an exact trading plan, staying disciplined and always use stop losses. But what rules should you use? Been on these threads from Traders Laboratory to Forex Factory and every one inbetween. There are systems that work for a while people will even post and tell you exactly what to do so you dont have to think, just follow directions. Why when I ask a year ,even 2 years later on that same thread who is still making a living with this system, no one answers?

 

I would love to tell every trader what is normal for every other job: Pick a specialty, find your strong points and focus on them. So if you like Fibonacci numbers, spend 2 years viewing video lectures, buy the following books and in 2 years you can make a living by trading with Fibs. But I cant tell you that.. Is it because Fibs dont work? No, they do, some of the time, for some people. "Ok " you say :I will follow only moving averages and find the best ones to use on gold futures or the EUR/USD by back testing different ones." That should work............but everyone has done that already. What about Neural Network software and Artificial Intelligence and Expert Advisors and scanners and especially Fractals that repeat in nature all the time?' The books say 70% accuracy all the time!!!' I don't know. What about them?

 

So what actually works for sure you say. I understand the desperation of the question. No one wants to spend 2 years studying systems and find none of them win over time, let alone win enough to let you live comfortably on a small bankroll under 25k. How about those of us who spent over 10-12 years and still cant find the wright system, strategy, tactics, or any path that is sure? All we long timers get is the same song over and over, and that is..."If you want to trade bad enough, stick to it until you make it. 10 years ago I eagerly embraced that philosophy. But I am still not making a living consistently. Do I pull the plug and cut my losses? Or do I use my 10 years of learning as a base to really push forward to succeed? There is no right answer.Not even for that? Each person must decide for themselves. And dont let the books tell you about all the greats that are now famous and made millions because they wouldn't give up. Those same books don't want to interview the other 90% who didn't give up and lost their house, their life savings 3 or 4 times, their family left them

or......they are dead.(Suicide, heart attacks,stress related diseases of all kinds. Shhhhhhh....lets not talk about those people. It's bad for business. Let us go back to my first three words once more time-ISN'T IT AMAZING?

 

Do

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1-Why.

I want to find patterns in noise. I want to feel the will of thousands at the same time. I want something to work at, and learn, and gain skill in. I want to experience something that's both an art and a science. And of course, I want to make money.

 

2-Commitment.

I can commit several hours a day, four from morning to afternoon and more in the evening when CME reopens.

 

3-Timeframe and method.

I know that I'd like to trade intraday, but I don't know exactly which frame yet. I'm trying them all out and seeing which works best for me.

 

4-Account/investment size.

When I start trading live I'll have $2500 for an initial margin. If it ever drops below $1900 I'll stop trading until I can replenish it with my day job.

 

5-Money management.

I'll trade with either 20% or 40% of my principal, depending on how confident I am in the entry. My position sizes will only increase if I make enough money.

 

6-Product.

I'm beginning with futures since they have the lowest margins.

 

7-Broker.

I've chosen a broker that's known for low margins, speed, and reliability. Their commissions are slightly higher than discounts, but you get what you pay for.

 

8-Platform.

I've found a futures platform that has everything I need and is supported by my broker.

 

9-News source.

I don't intend to use news, unless I can find some RSS feed that will warn me of catastrophes.

 

10-Computer.

My PC runs my platform fine.

 

11-Internet Connection.

I have a (mostly) reliable broadband internet connection.

 

I love your post. Especially about finding the patterns in noise and feeling the will of the market. This is mumbo jumbo to some, but that is the greatest achievement one can get as a trader IMHO. I say this because I am also a martial artist and not young anymore. Anyone is faster or stronger than me. But who will be able to see the will of that person before it manifests. That is what lets some of the old masters still fight ,live and BE old. Intuition,whatever you call it, I love when it works....yet it cannot be depended on as a complete system. -) I also dont think you are being realistic about the money part. You are leaving yourself with $600 to lose before you stop? You will never feel stress free on that little amount to trade unencumbered and correctly. I heard of only one person in the world making it on $600..............and he might have been lying. But you are on the right track. I'd like to hear more from you. Feel free to PM me and if I can help in any way, or if I can use any of my 15 yrs of trading to guide you, ask anything you like.

 

Good Luck.

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1. Why

I'm trading to make money, possibly as a career. It's an hobby, but it's also something more than a hobby. I have a job and don't depend on trading for my daily expenses. However, even if money is not a goal in itself, to have an additional income is my basic motivation. That's a major thing that presently makes sense to me. And yes, trading is also a good gym to motivate yourself in many things of your own life.

 

2. Commitment

I'm currently spending 6-8 hours a day to learn and improve my trading. I'm lucky because my family supports me in that (well, till now it worked at least...).

 

3. Timeframe and method

Basically intraday (5m, 30m charts), 100% mechanical trading system. Using mean reversion, breakout, gap trading strategies.

 

4. Account/Investment size

$20.000 spread in two accounts (futures, forex and equity).

 

5. Money management

I started apply a very profitable (but risky) strategy to CL contract, but had to move back to the more "quiet" QM because of the risk/reward ratio. I'm trying to keep my risk under control.

 

6. Product

Basically futures. Some stocks (especially in the past), but also forex pairs.

 

7. Broker

InteractiveBrokers and mainly TradeStation. In the next future will also open another futures account, to diversify.

 

8. Platform

TradeStation mainly. Had some experiences with MT4.

 

9. News Source

Don't do news trading.

 

10. Computer

I've just recently noticed that my quad-core 3Gram PC is no longer supporting my daily activity as expected. I'm planning to do an upgrade asap.

 

11. Internet

A regular ADSL connection. Using also my cell phone as a backup/emergency connection.

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1-Why.

I realize that trading will have a learning curve and I will have to be disciplined and patient. I don't want to trade for a living because I want to have the freedom to make good decisions without worrying if I'm going to be able to pay the mortgage.

But I'm not going to lie, I want to be financially independent which to me is the same as being rich.

 

2-Commitment.

I can commit about 10hours a week

 

3-Timeframe and method.

I will use options to take advantage of a huge news opportunity, but I will primarily either use options strategies to trade directionally or non-directionally as the market lends itself.

 

4-Account/investment size.

I've got about 5k to trade, and I would like to have a minimum 20% ROI per year.

Realistic?

 

5-Money management.

I understand that losses are part of the game from playing poker, but if one consisting makes trades with a positive expected value, he can come ahead over time. I plan to limit losses using stops.

 

6-Product.

Options

 

7-Broker.

Options House

 

8-Platform.

Options House Platform

 

9-News source.

Need to learn more about this. I have been using Google Finance.

 

 

10-Computer.

Computer is ok.

 

11-Internet Connection.

Have reliable high speed internet

 

Thks,

 

Drader77

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1. Why

To get rich.

 

2. Commitment

 

I spend 6 hours trading and 4 more on system development

 

3. Timeframe and method

 

Short term momentum and reversals (swings), EOD, 1H data.. Setups are data-mined by Price Action Lab and the code for Multicharts is also generated by it..

 

5. Money management

Fixed fractional 1% - 2% of bankroll on each trade. Cumulative risk of all positions not greater than 3% at any time.

 

6. Product

 

Index ETF, high cap stocks, futures, forex.

 

8. Platform

Multicharts 8.7

 

10. Computer

AMD 8 core CPU. I use 4 PCs, 2 for trading and 2 for development. backups are made daily and full backups weekly.

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Hi guys, great thread, allow me to add my 11 pennies.....

 

1-Why.

Challenge first, money second. If I don't find something challenging I won't be inspired to keep it up.

 

2-Commitment.

A few hours a day is all I'm able to spare at present, this doesn't include commute times spend researching ares of trading that interest me.

 

3-Timeframe and method.

Fancy myself as a scalper though probably more of a swing/daytrader

 

4-Account/investment size.

5k initial outlay, no pressure for it to start making money back, the funds were earmarked for this purpose.

 

5-Money management.

Never more than 2% of risk capital per trade, anything else goes :)

 

6-Product.

Primarily currencies, however have a soft spot for gold. Call me a permabear.

 

7-Broker.

Started with FxPro's MT4 account, well actually spend about 9 months in demo mode before opening this. FxPro's demo is free and unlimited, you don't need to give over your payment details either, just a simple registration form and a confirmation email link is all you need to start trading demo. Good way to get newbie traders in, good advertisement for broker as well. I reckon all brokers should give you demos for free with no limits.

 

8-Platform.

Ooops, just answered this!

 

9-News source.

Hmm I'm torn. Technical indicators are working for me and have worked in the past, but at heart I think I'm a fundamental analyst. The deeper I get involved in technicals, the more the little voice in my head screams WITCHCRAFT! ;)

 

10-Computer.

Currently using an ultrabook to trade between office and home, always use more than one monitor. Except when at Starbucks!

 

11-Internet Connection.

Doesn't really matter nowadays does it, all connections are lightning fast....

 

 

Hope this is useful

Thanks again.

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I might not be a forex trader guru but I am an expert researcher. Based on research and current trade trends I think gold trading is the way to go. Truth of the matter is in times of crisis and economic down fall, gold it always standing tall and is a mutual form of trade. You can’t loose when you trade gold it is almost like crude oil.

Based on prediction by top traders gold is going to be the next big thing :D

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1. Why

To get rich.

 

2. Commitment

 

I spend 6 hours trading and 4 more on system development

 

3. Timeframe and method

 

Short term momentum and reversals (swings), EOD, 1H data.. Setups are data-mined by Price Action Lab and the code for Multicharts is also generated by it..

 

5. Money management

Fixed fractional 1% - 2% of bankroll on each trade. Cumulative risk of all positions not greater than 3% at any time.

 

6. Product

 

Index ETF, high cap stocks, futures, forex.

 

8. Platform

Multicharts 8.7

 

10. Computer

AMD 8 core CPU. I use 4 PCs, 2 for trading and 2 for development. backups are made daily and full backups weekly.

I am newbie...this is very useful suggestion, thx

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As for begginer trader, It's very important to find your own style and a reliable broker who will help you at the beginning with finding best Trading conditions,Adding and withdrawing funds,Client reviews ,Quality of client support. A lot of companies offer you this kind of services,unfortunately not all of them can be trusted.When I started trading I used Personal Broker | FXFINPRO Capital. They helped me a lot at the beginning. Now ,having become quite experienced, I place bids without help of brokers.But they helped me a lot when I was newie)))

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So after 3 years, do you feel you have addressed all these point poorly/well/got them nailed? It's important for new traders to realise how many things they have to look at and how many more things they will find out they have to look at when they get into trading. Being extremely organised should help!!

 

I feel that before we begin the training journey,we should consider our interest in it,mostly. It shouldn't be just for the money. The moment we really love it,then our attitude will be positive. Our efforts will be great and we will have the heart to face any challenges that come with it. The moment we love it,everything else will fall into place.

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... The moment we love it,everything else will fall into place.

 

nhn.

You are joking us, right?

Many traders love trading to death and can’t make a go of it. In a tennis league I play in you can tell which guys love the game the most... but it does not make them the winners. A ‘love’ for trading is definitely a necessity for sticking in there through thick and thin... but everything will not fall in place just because one ‘loves’ it.

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Hi!

 

This will be a thread where people can discuss their hopes and dreams and fears about trading full-time or part-time, but either way trading for real. There are many considerations a wannabe trader must take into account before trading live and many of those will likely be missed or overlooked understandably by someone new to the business. Some will be breakers like account size, some will be obstacles like investigating which product may suit you and your trading.

 

If this thread can be a source of knowledge and be an eye opener to what may be involved in beginning to trade then it's goal will have been achieved.

 

It'd be great to get some posts from new traders here to see some of the hurdles you have had to overcome or even problems which have prevented you from trading completely.

 

Looking forward to sharing your experiences.

 

Cheers,

 

TheNegotiator.

 

Trading forex is way more challenging than you think, the question you need to answer before I reply is whether you want to trade forex to make real money or this is just a new hobby?

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well like all others my hopes from forex is to become rich . i am a beginner here but i am learning how to trade and what are the points to focus . i know i am a good learner. so i think i will gain sucess in forex . still if anybody wants to give some suggestion they are mostly welcome !!! thanks

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Hi all,

 

I'm new here and this is my first post -- this looks like a nice place to discuss all types of trading theories and news and information related to the markets, so I'm excited to get started. Short backstory -- I started trading with real money about 3-4 years ago, but not very frequently. Ideally I think at some point I'd like to become a day/swing trader, but up until now I'm more of an investor/long-term position holder.

 

I have a full time job so it's a bit hard to be on the pulse of the action and following charts, news alerts, and so forth, BUT, my job does keep me in front of a computer quite often, which is really the reason why I'm even able to place trades during the day to begin with (technically it's probably against company policy, but that's another discussion)

 

My initial bankroll was $3,000 of my own money and over the past few years I've probably purchased a dozen or two different stocks and gone through various wins and losses, and ultimtaely where I sit now is about 30% loss, with around $2,000 left. With that said, I do have open positions (cuurrently no cash flow), so if my current positions go up (and I think a few might), then I could be back to a market value of where I started.

 

I'll be honest, that's a little deflating to me because it makes the past few years seem like a waste and that I haven't learned anything, but I guess in the grand scheme of things it's better to come out even after I just started learning, than having blown through thousands of dollars like many people probably do, so I should probably consider myself lucky.

 

With that said, I am very much looking to win now, and I feel that I should be out of the learning curve and newbie stage. I hope to learn from the people here and share ideas, strategies, and tips, and contribute to threads as well so that I can help others do the same

 

Thanks for having me, best of luck, and look forward to talking to everyone.

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Hello everyone

I would like to throw some light on the topic of this forum i.e considerations for a Wannabe trader below:

--First and foremost, just read the market and follow the news. Pay attention to how the market reacts to something and how brokers make calls on some stocks. What their criteria is.

-- Secondly, just start with small amount of money on something which you think is worth making call on (on the basis of your study)

-- Dont forget to keep a track of the market trends. Monitor the stocks sector wise and keep an eye on fundamentals of the stock you are investing in.

-- Gather more on losses i.e if you are sure that the company is having solid fundamentals, sell on gains.

--- Be patient and always keep a time frame. Follow the resistance and support levels.

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To me, this is the most important tool in your belt. As someone said, "you are only as good as your tools". If you go for a cheap service or speed, this type of thing will happen and the results can be frustrating at the least - costly otherwise.

Must be "hardwired" into your connection is my experience. Also, a good backup power source.

Then the computer you use. Up to date essential.

Broker

Platform

Have a community of traders that can give support

A mentor to guide

Trading plan

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To me, this is the most important tool in your belt. As someone said, "you are only as good as your tools". If you go for a cheap service or speed, this type of thing will happen and the results can be frustrating at the least - costly otherwise.

Must be "hardwired" into your connection is my experience. Also, a good backup power source.

Then the computer you use. Up to date essential.

Broker

Platform

Have a community of traders that can give support

A mentor to guide

Trading plan

 

Nice must-have list. Actually I use VPS with my Hotforex platform running scalping EA so can cross out some of the items from your list. But for newbie starting with manual trading, everything you mentioned is crucial.

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I just entered the big game, have tons of stuff to learn about, but another forum member just mentioned here a learning package I got curious about. So now I'm freshly subscribed to Earn2Trade. I have big hopes with their learning package. They offer a funded account once you complete their gauntlet challenge. I hope I can become a full-time trader.

 

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On 6/13/2018 at 9:50 AM, Jason Solomon said:

I just entered the big game, have tons of stuff to learn about, but another forum member just mentioned here a learning package I got curious about. So now I'm freshly subscribed to Earn2Trade. I have big hopes with their learning package. They offer a funded account once you complete their gauntlet challenge. I hope I can become a full-time trader.

 

Yep, they seem to be great so far. I got their first package with nice video lessons, definitely worth it. And it's really cheap right now.

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Hi.

I am looking for some alternative to MetaTrader platform.

I initially liked MetaTrader for their customization ability. However, the reputation for MetaTrader brokers are generally low.

Which trading platform could provide the same level customization to MetaTrader platfrom but with better brokerage service ?

Can you recommend one ?

Thanks so much for your idea.

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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.
    • USDJPY Remains Biased To The Downside   USDJPY faces further price weakness despite its price hesitation on Tuesday. On the upside, resistance comes in at 109.00 level. Above this level will turn attention to the 109.50 level. Further out, we expect a possible move towards the 110.00 level on a break of that area, A cut through here will open the door for more gain towards the 110.50. On the downside, support lies at the 108.00 level where a break will target the 107.50 level. Below that level will turn focus to the 107.00 level and then lower towards the 106.50 level. On the whole, USDJPY faces further downside threats.        
    • Sterling Advances Barely Hours To UK Elections As Latest Poll Predicts Conservatives Win In just two days from now, a major event that will set the trend for the currency market for the year 2020, the UK elections will be held. In the face of a Brexit extension, UK prime minister had pushed for an earlier election in the hopes of having a majority conservatives win in the parliament which will make the Brexit deal pass through easily. As the clock ticks, with barely less than 48 hours to this epochal event, the newest poll by Survation conducted for ITV’s good morning Britain show predicts a Boris Johnson win by 14 pts. ahead of Jeremy Corbyn‘s Labour party. The Brexit deal seemed to give the conservatives an edge as it accounted for 32% of the vote decision while NHS gave Labour party a slight edge. On the overall, a majority vote of 42% was predicted for the conservatives while Labour had 28%. Market Reaction as the Clock Ticks Optimism looms in the market as the prediction of a conservatives win will ease Britain’s exit from Europe by January 31 deadline. The EUR/GBP pair continued to fall till the early hours of today breaking the 0.8411 trend line targeting the 0.8149 resistance level. GBP/USD pair rebounded to consolidate briefly targeting 1.3381 resistance levels. Technical analysis within a 4-hour MACD shows that both pairs may likely touch down. CAD edged slightly higher advanced by USMCA news but yet to consolidate gains. The USD against a basket of five major currencies held steady awaiting FOMC’s minutes due out tomorrow. Against a basket of currencies, NZD’s dominance is the highest. Sterling also gained momentum firmed up by approaching UK elections. The safe-haven, the Japanese yen, and Swiss franc remain pressured as major events that will shape the market for 2020 are been anticipated. On the Asia side, significant market activity wasn’t recorded as most currency pairs held steady within a day’s range. In the Asian stock market, not so much activity was recorded being weakened by recently released Chinese PMI numbers. Most of the indexes closed a little lower while US stocks rose swiftly after Friday’s release of US non-farm payroll reports. The outcome of the December 15 deadline set by the US for the signing of a preliminary trade pact will determine the week’s direction and even further into the year 2020. Also due out later in the week is UK GDP figures and ZEW released out of Germany.
    • Date : 11th December 2019. FOMC Preview – 11th December 2019. FOMC Preview No policy changes or surprises are expected with today’s announcement (19:00 GMT) and Chair Powell’s press conference 30 minutes later. It will be interesting to see if, as expected, the voting is unanimous this time round. The FOMC members have expressed significant differences of opinion during 2019 as three rate cuts were implemented.  The apparent paradox of low unemployment and low inflation, the new “norm”. The two-digit unemployment rate (U-3) in November edged down to 3.53% from 3.56% in October, and a 3.52% cycle-low in September, all below the 3.58% prior cycle-low in April and a 4.00% rate at the beginning of the year. Current readings remain much lower than the 4.2% long-run unemployment rate projection noted in the September SEP, it is expected that this estimate will be trimmed today. Headline CPI rose 0.4% in October while the core index rose by 0.2%, for respective y/y gains of 1.8% and 2.3%, versus September figures of 1.7% and 2.4%. Today the November headline is expected to fall again to 0.2% and the core remains flat at 0.2% too. The Fed’s favoured inflation gauge, the PCE chain price measure, rose 1.3% y/y in October and expectations are for an uptick to 1.4% in November. The core PCE chain price measure rose 1.6% y/y in November, versus 1.7% in September, and expectations are for the pace to hold at 1.6% in November. The FOMC’s latest median estimates for 2019 inflation are 1.5% for the headline and 1.8% for the core. Hence, the focus will be on the Fed’s new quarterly forecasts, with expectations raised and likely to be mostly bullish results with a bump up in the median growth projection and a drop in the median dot to reflect a steady stance through 2020. However, the individual dots are likely to show both, forecasts for cuts and hikes. Chair Powell is expected to reiterate the US economy and policy are in a “good place,” (a phrase he has used a number of times lately) and could sound a little more upbeat after the strong jobs report. But, he will continue to warn of downside risks. The FOMC isn’t likely to announce any new measures on reserve management operations (QE?) or a repo facility. All steady into 2020 and beyond. USDIndex remains biased to the down side but has support around 97.40 and the 200-day moving average. A breach of this key support zone brings in 97.00 and the October low of 96.85. A break over 97.80 (the confluence of the 20 and 50-day moving averages) and 98.00 would be required before a re-test of the recent high at 98.50 could be considered. 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 HotForex 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. Stuart Cowell Head Market Analyst HotForex 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.
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