The trends in the market are referred to by names. When a trend is up it is called long. When a trend is horizontal it is called flat or lateral or congestion or in balance or a swing channel or between support and resistance. When a trend is down it is referred to short. You have to express these things to those you trade with in conventional way. They will correct you if you do not follow their convention.
DO NO BORROW $ TO TRADE ANY MARKET..... If you dont have the capital to lose dont play it. You may be able to hook on to an LLC that provides you leverage on your 2K, but they will charge you higher commissions to cover the cost of the leverage.....even if you find that finding one that will let you take overnights would be rare.
Many are called but a few are chosen. About a dozen posters gave you very good advice, but you only responded to Jack. When you figure out the mkts using Jack's methods please let us know, we all want to make 6 - 8% every six to ten days.
I can easily tell you why. Jack, unlike others on this board, makes promises of, well, 6-8%, as in this case, that are yet to be verified. People like concrete things, so Jack gives this to them. That's the main reason he has such a following on this board.
I reread your inquiry. You are asking about the volume rising. What happens in a cycle is that as the trough is apporached the volume goes to it's lowest point. From this condition of lowering volume to it;s lowest, we see the price also sinks to the support level. It is like a plane landing. I will dig up the boolean equations for this I have seven. When the trough is reached (Score 0), then you look for the cycle to begin again. Volume will suddenly start rising and when it gets to the former low volume (DU--dry up) early in the day you see that at that point the price will begin to advance upward from the trough (support) value. If the volume continues to build during the rest of the day, then you have a trend beginning. The way to monitor this is to do a prorata assessment of the volume as the day passes. When it hits the DU by 11:00 am you have a good signal. when the market picks up again at 13:15 you will see the price advance again as the additional volume drives it. This is not complicated. Lets say you bought in and a few days pass. you will see the money velocity peak. That is the steepness of the price curve. Once you have reached this price slowing down, you can watch the volume again and watch closely. The fact is that the price volume relationship is symmetric. As you can imagine after the price peaks, a lot od people exit to go to another stock. there is a surge of volume as they leave. It is called "smart money". Smart money does not hold stocks when they decline. Why bother. Thus you can exit using volume as a guide just the way you enter using it. when you get to optimizing making money by rotating your capital through a series of stocks and their cycles, you will find out that entering late and leaving early is the best way. the reason isn't obvious though. the primary reason is that you do more cycles. Increasing cycles is very important compared to profit per cycle. Look at the role of the variables in the compound interest formula. You see they can be ranked according to the relative importance for making money. The exponent which is the timing variable is the most powerful. Soon you will see that you exit as the moneyvelocity declines to the value of the increasing money velocity of the stock beginning its cycle. This is the money velocity cross over value. by just slipping out of a stock and into another you maintain a high continuing money velocity. Most people try to get into trends as early as they can. They are defeated with this mental limitation. you need to get in when the money velocity is at cross over. This also eliminates the concept of drawdowns. There are none in investing after you get to a minimum level of sophistication.
Yeah, right... so I wonder why this concept still exists. What, the Wall Street still does not know you eliminated it? Yet another extraordinary claim of yours. Have you ever heard that extraordinary claims demand extraordinary evidence. And you provide none whatsoever.
I'm new, too. I'd like to second or third the suggestion that you use a simulator. Don't be in any hurry, and make all the stupid mistakes that you can whilst using the simulated dollars in your simulated account. You might look at e-mini futures. Their minimum "tick" size is like 10 bucks, rather than the pennies that a stock can increase, and they aren't subject to the Pattern Day Trading rules, I think. Further, they can be traded with a brokerage account of 5000 dollars, or maybe even lower. www.pfgbest.com is where to get the simulator that I use if you'd like to experiment with e-mini futures. It may be a bit buggy... I haven't decided whether it's my fault or the program's fault that some odd things have happened. Loxley
Read everything you can, buy every half decent rated Trading book from Amazon , and then sell it back used so your costs are minimal. Then spend months on screen time, watching patterns.. developing your own theories and eventually your own trading system from your experience. Post here, read here and ask every damn question that is bothering you on trading. Your best bet is to keep your money until you have a fighting chance.
1. Be careful of advice you receive on ET, there is no way to know if it is by a real trader or a 16 year old. 2. Do not trade right now. The market is flat and volatile at the same time. 3. Read everything you can. Borrow every video you can. Knowledge is valuable. 4. Neither a borrower or lender be. Especially when you trade. 5. You are going to lose a lot of money sometimes, get used to it. 6. You can make a lot of money. But it is easy to lose it even faster when you get cocky. 7. Talk to other traders. Ask lots of questions. 8. Paper trade for 1 year at least. Unless you are independently wealthy and can afford to lose a lot of money. 9. Paper trading is not the same as real money trading. There is a big difference when there is money on the line. 10. Have fun while doing this. If it is not fun, you are doing it wrong.
Re: Re: Any advice for a beginner short-term trader? -------------------------------------------------------------------------------- Quote from links: Many are called but a few are chosen. About a dozen posters gave you very good advice, but you only responded to Jack. When you figure out the mkts using Jack's methods please let us know, we all want to make 6 - 8% every six to ten days. -------------------------------------------------------------------------------- Quote from Wally: I can easily tell you why. Jack, unlike others on this board, makes promises of, well, 6-8%, as in this case, that are yet to be verified. People like concrete things, so Jack gives this to them. That's the main reason he has such a following on this board. The quote here of earnings is wrong. The reference I made to a person who was trading mechanically using c language version of what I recommend. He was just beginning. The first six months results were 11.1 percent per trade net profit and the hold period was 6.6 day average. I was given on floppy the trading record. As a consequence of a 4 1/2 meeting once (he had learned the method from someone else who learned it from someone else..I train of people.), there was an improvement. It was 20%. I believe the improvement was a consequence of two things: he began to look ate the market daily for the first two hours and he ask me a set of questions and which he video taped the answers. Although we went through the c language software he made up to trade mechanically, he made very few changes in it. Wally's languaging related to my promises that he reads may contain interpretations such as he one's he repreated incorrectly from the mistakes links made. Were he on the ball he would have corrected links. I hope people here can see that the possibility of either links or Wally in achieving personal goals they may set for themslves is demanding of me. To get them to a place where they would use my stuff to make up a c language mechanical software to duplicate what the other person did is difficult. I tried to contact Wally by email and give him the software as an attachment. It was rejected. What I choose to do was contact Baron and try to get a way to send Wally the software. I did this within about three days of starting to post here. I was told within three weeks by Baron that there were other ways of doing things on ET and that people did not want to get things sent to them for a series of reasons. Naturally I wouldn't want to screw up things being a newbie as I am here. I do not have followers here it turns out. My relations to poeple here are various and diverse. Wally sees followers. Wally wants to see things in particular ways. That is good for Wally. he should do as he pleases and give consideration to what he does it that fits into his thinking starting at some point in the future. It will be a change for him and for now I see that it would be very risky and unmanageable. As he responds to this, you will be able to see if he is making any personal progress. It is my job here to keep the facts straight relative to what I say. read the above and get it straight because you read what I said once again to correct the sloppiness of two people named links and Wally.