[MRW]

Just some observations - it seemed like this was the place to post them perhaps.

It would seem, based upon my learning curve so far, that one of the most important things in trading is the way one thinks about the market. For example, does a price move mean something to you about supply/demand pressures or is price movement a function, say, of your mathematical model?

It would also seem that a progression in learning might go from first getting one's thoughts in order, to practicing seeing the way various supply/ demand pressures work themselves, to practice one's observations by taking small, low-risk raes, to gradually working up in size as judgement becomes better.

The first step then being to know what you're looking for/at, then gainig experience spotting these things, then working out some guidelines for actually trading them.

Sorry for the somewhat rambling, semi-coherent thought process here - I'm just starting to get this straight (assuming I'm not way off base), I think.

Would love to hear the thoughts of others!

[dla133]

I have done some more reading over the past few days and have gained a better understanding of the basics of supply, demand, support, and resistance. I understand that one way of trading is to look for key areas of support and resistance and watch the price and volume action around those areas. The tape reading books that I have read so far put volume as the most important indicator to highlight supply and demand. At this moment I can only get price action on my charts. If I wanted to trade via volume rather than mainly price, how would I go about doing this?
This relates to live rather than end of day volume.

Cheers
Lee

[DbPhoenix]

Originally Posted by dla133 »

At this moment I can only get price action on my charts. If I wanted to trade via volume rather than mainly price, how would I go about doing this?
This relates to live rather than end of day volume.

The first step, of course, is to get a charting program that provides you with volume. There are comments about various charting programs and datafeeds sprinkled throughout the site, but using the search function may help you find what you want. I use Sierra, which can cost you less than $20/mo.

Since you are not likely to care about loads of features and add-ons and plugins, you will be able to get by on very little money.

As for trading "via volume", there's probably more than you want to know right here in this forum (and in my blog). If you don't know where to start, check the stickie labeled "Most Thanked Posts". At least some of these will provide you with a starting point.

[Tannism]

Hi Lee,
You might check this out. It can be free.
http://www.quotetracker.com/

[Head2k]

Originally Posted by MRW »

Just some observations ... Would love to hear the thoughts of others!

I am a beginner and I've been studying Wyckoff for quite a short time, but I belive your observations are basically correct.
First one needs to choose a way. A way of thinking about market, understanding, interpreting and analyzing the market's action. After some rambling from one thing to another I found Wyckoff and fell in love with him. This way is beautiful in its simplicity and it gives you a chance to get in harmony with the flow of the market (Not saying I got to this phase, but I have some bright moments). Being in harmony with the market's flow provides a kind of inner peace, and implies confidence.

As for the process of learning, first one needs to understand the theory. This forum and Db's blog are great for that. Texts and static charts should serve the purpose.
Once you think you understand the theory to some meaningful degree and you can interpret historical charts, you should move to live charts. Not trading, but analyzing and interpreting. Without hindsight it gets much harder. Then, if you think you gained enough experience to actually exploit your understanding, you should start with strategy development and paper trading. And once your plan is developed and you gain consistency on paper, you can start live.

[dla133]

Thanks,

I have sey up a demo account with Sierra.

DBPheonix,

If all I want to do is trade currencies and indexes, which package from 1 to 8 would you suggest? Could I get away with the most basic package for now? This would be package 1 priced at 17.5 USD.

Cheers
Lee

[MRW]

Thanks, Head - interesting to hear someone else is thinking along very similar lines!

[DbPhoenix]

Originally Posted by dla133 »

Thanks,

I have sey up a demo account with Sierra.

DBPheonix,

If all I want to do is trade currencies and indexes, which package from 1 to 8 would you suggest? Could I get away with the most basic package for now? This would be package 1 priced at 17.5 USD.

Cheers
Lee

If you have no experience, I suggest you begin with the least expensive option available, though what is least expensive will depend in part of what datafeed you select, and what datafeed you select will depend on what you decide you want to trade. Since you'll need nothing but price and volume, there's no need to purchase anything more involved.

After that, I suggest you select one of either currencies or indexes, whichever you understand better. If you don't understand either of them, consider ETFs or even stocks. If you don't understand those, either, find something that is not a complete mystery. Then get to know it.

Once you have a basic understanding of whatever it is you want to trade, then begin studying how it's traded. And for that, Head2K's advice in another thread is pretty much what I would suggest. But coming from a fellow beginner (I assume you're a beginner, or close to it), perhaps it will carry a bit more weight.

I am a beginner and I've been studying Wyckoff for quite a short time, but I believe your observations are basically correct.

First one needs to choose a way. A way of thinking about market, understanding, interpreting and analyzing the market's action. After some rambling from one thing to another I found Wyckoff and fell in love with him. This way is beautiful in its simplicity and it gives you a chance to get in harmony with the flow of the market (Not saying I got to this phase, but I have some bright moments). Being in harmony with the market's flow provides a kind of inner peace, and implies confidence.

As for the process of learning, first one needs to understand the theory. This forum and Db's blog are great for that. Texts and static charts should serve the purpose.

Once you think you understand the theory to some meaningful degree and you can interpret historical charts, you should move to live charts. Not trading, but analyzing and interpreting. Without hindsight it gets much harder. Then, if you think you gained enough experience to actually exploit your understanding, you should start with strategy development and paper trading. And once your plan is developed and you gain consistency on paper, you can start live.

Each of these steps is going to take time, perhaps more time than you're willing to invest. If you go through these steps methodically and deliberately, it will take less time than if you rush. And if that sounds like I said it backwards, I didn't.

Another resource is the Trader's Journal, which will help you figure out what you want and how to go about getting it. You may have already made some of these decisions, which is all to the good.