[keymoo]

weiwei thanks for sharing your experiences with us. I know that sometimes it can't be easy to even admit to ourselves what is going on emotionally, but to share it with us all is very gracious. Thanks.

[torero]

Good thread, weiwei, thoroughly enjoyed! Good on ya!

[weiwei]

I would like to add more to the Money part:

I think the valid question for a new trader is to know how much money dose he/she needs until he turn profitable?

even if one turn profitable, can that sustain his/her live style.

Because prople usually progress up. Usually, a new trader will pay tuition to learn, and after that, he slowly become consistant. You see, even being consistant might not generate enough for your life style.

But being able to achieve that consistancy level is a big achievement in any trader's view. can you see now, that even you win you still end up lose.

Of course one can figure out a way to deal with it, every good business man dose. But be prepare for it.

weiwei

[weiwei]

this will be the 2nd part of 3M. Methods.

Depends on your style of trading, one will need to chose his tool accordingly. ( Since i daytrade, so my focus will be more on day trading)

swing trade, position trade:
1. TA is OK, but need more money to hold position, and mental toughness to withstand market's gyration and account drawdowns.

2. Dose not need to make constant decision, but do need to have the discipline to take signals.

Day trading: so far those price derived indicators have not been working for me on day trading. I will list what has work for me, and one can judge for himself. And I only trade YM.

Preparation
1. forward thinking from higher time frame, mainly daily and 135M chart.
2. stats on different conditions, gaps, range.

During trading hour:
1. various SR line on 5M chart
2. Volume delta on the same 5M chart
3. $tick, time & sales,
4. 5M Point and figure chart on YM
5. 5M ES, NQ, and ER2 charts.

what I am looking at is the relationships on all these charts. These are what I call NOW indicators. Indicators that do not lag or lag very little. They give you the info for what is happening now, then I base on my setup from here.

Again this is approach that focuses on "the cause" that produce the result(price).

Even with daytrading, there are many styles and many approaches. One would have to use a method that fits the market that he/she trades and fits his//her personality.

there are so many systems and trading rules out there, I would suggest a beginner stick to one setup and very few rules. Once you master it, then move on to the next one. Important thing is to know exactly what to do with the system in all different market condition. so one can act accordingly.

weiwei

[even steven]

Hi all,

I strongly agree with nytt that papertrading for too long is counterproductive. there is no emotional component to papertrading, though it is useful to learn the software platform of your direct access broker. trade small, but trade live. and the quality of your analysis of your trades is very important. don't be arrrogant, like too many traders. respect the difficulty of what you are attempting, and pay attention to your emotional state while trading.

some of my early mistakes were: averaging up/down into a losing trade, rather than looking for a better setup elsewhere. so I landed up with more shares than I should have had on one trade. another early mistake. thinking I was a trading boffin after a few successful trades! wanting "revenge" against a stock I just lost money in, so overtrading it, rather than looking for a better setup.

good luck to everyone. and remember, slowly slowly catch a monkey.

[JKLM]

one practical question ..
since you daytraders ..do you have your own companies or you are unemployed individuals ?

I ask this because if find I can't successfuly daytrade and keep my current job

in one hand I will feel bad if I am not employed...and If have small company thre is tax issue etc ..

[tlfx]

Then don't daytrade. Try swing trading instead.

[AzzaB80]

Originally Posted by even steven »

Hi all,

I strongly agree with nytt that papertrading for too long is counterproductive. there is no emotional component to papertrading, though it is useful to learn the software platform of your direct access broker. trade small, but trade live. and the quality of your analysis of your trades is very important. don't be arrrogant, like too many traders. respect the difficulty of what you are attempting, and pay attention to your emotional state while trading.

some of my early mistakes were: averaging up/down into a losing trade, rather than looking for a better setup elsewhere. so I landed up with more shares than I should have had on one trade. another early mistake. thinking I was a trading boffin after a few successful trades! wanting "revenge" against a stock I just lost money in, so overtrading it, rather than looking for a better setup.

good luck to everyone. and remember, slowly slowly catch a monkey.

It depends on what your focus is when paper trading. As weiwie mentioned, as long as your focusing on the process rather than making money.

This can help reduce emotions when you go live if you have 100% confidence in your setups, through papertrading and have practiced executing flawlessly.