Beginner Futures Trader (HELP)

Grob109 · Jun 4, 2004

Quote from fundmanager00:

Hello everyone, I am new to the board. Please forgive me if some of these questions sound basic.

I am just wondering about different ways to trade the ES (S&P E-MINI)

In ET the most popular stuff is "edge" trading either as a system or mechanically. Most do that by looking for signals from price, patterns or indicators. Others here trade with descretion using a rule based approach that is personally developed. There are some like you who use price levels as a guide; they do pivots and S/R and trend runs. My personal bias is to be in the market most of the time and just remain on the trend side.

It is good to set goals for trading. Daily goals are used as well and weekly goals. The most popular goal for long term daily average per ES contract is about one point.

If I were to day trade the ES what kind of indicators should I use?

There is a vast array of indicators used on ET. This is fortunate for you because you can associate verious indicators to the expressed mind set of those who use them. Some do not recommend indicators because of various reasons. It is good to log the pros and cons from people to find out how people succeeed with them or get trapped by improper usage. If someone posts a chart with indicators, you need to chack immediately if they are using the designer defualts or newr "non bridging" defaults that are required by the de facto occurance of the PC and electronic markets. Use TA from A to Z for the maths and old defaults. If you ask several people here can explain how to overcome bridging.

If I want to swing trade the bigger trend of the ES what Indicators should I use?

Use the 30 min charts and set your indicators so that the largest bar count os much less than 1/2 the swing time average for the season. There are two basic types of indicators. Absolute and relative. Use one of each. Also choose one that combines the two variables of the market.

The signals you take off indicators should be "leading" ones that you can devise by using time rate of change of the indicator.
the actual indicators you choose are not too important, all work as designed. Do not consider the MA's in any form as indicators, however./color]

What are some tips that you have for people that are starting out trading the ES?

Assess yourself and plan to correct those things you find wanting or mistaken beliefs. See HTMMIS by WJO Chapter 20. Log the 18 items frequently to measure your progress. Emotions are paired with sensory activity. (The survival fight or flee). Balanced emotions are required. You must log your behavior while sensing. Unbalanced emotion will appear unwanted. These are inflamed. Correct them to be balanced. The ones you want, you must summon. They are balanced if they appear when summoned. If they do not arrive, they are screwed up. Correct them.

To succeeed in trading you need to avoid repeated failure. If you do not you will find that your immune system will shut down sensory inputs to protect you in several ways. You will find learning is difficult because of this "protection you are getting from peptide deposits a field from your brain. Later you will be protected from yourself my an inability to do memory in and then out. Agin it is a chemical shut down process from your immune system to protect you. There are many examples of this progression in ET.

Beginner trading has to be corralled to just high probability trades to assure that your system is going to welcome learning and remembering stuff.

I am trying to build a system for either day or swing trading and would like some suggestiosn to get started.

How dissappointing.

I understand that it is important to use tight stops while daytrading but how do you decide on your stop loss. Some say that you should pick an amount that you feel comfortable losing on each trading and set your stop loss to that amount. Any suggestions?

this is bad advice. set stops properly instead.

I am just getting started and would love to have as much help as I can get.

Thanks again

Also, if you can share some stories about how you got started in futures trading that would be wonderful
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bufferman · Jun 4, 2004

Here is simple price action.

In an uptrend, price makes higher highs and higher lows.
In a downtrend, price makes lower highs and lower lows.
When price fails to take out a low in a downtrend, it's time for either a reversal to the upside or a consolidation.
When price fails to take out a high in an uptrend, it's time for either a reversal to the downside or consolidation.

Read information on candle patterns. Use them for confirmation.

Good luck.

SethArb · Jun 4, 2004

what is the title of this book ? immune system trading ?

-See HTMMIS by WJO Chapter 20.-

- Log the 18 items frequently to measure your progress. Emotions are paired with sensory activity. (The survival fight or flee). Balanced emotions are required. You must log your behavior while sensing. Unbalanced emotion will appear unwanted. These are inflamed. Correct them to be balanced. The ones you want, you must summon. They are balanced if they appear when summoned. If they do not arrive, they are screwed up. Correct them.-

-To succeeed in trading you need to avoid repeated failure. If you do not you will find that your immune system will shut down sensory inputs to protect you in several ways. You will find learning is difficult because of this "protection you are getting from peptide deposits a field from your brain. Later you will be protected from yourself my an inability to do memory in and then out. Agin it is a chemical shut down process from your immune system to protect you. There are many examples of this progression in ET.-

dbphoenix · Jun 4, 2004

Quote from SethArb:

what is the title of this book ? immune system trading ?
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It's what you get when you smack Yoda up side the head with a crowbar.

rtstrading · Jun 5, 2004

Try www.tactrade.com
Very good methodolgy for emini futures. Excellent web site for training and live training as well.

Bob

kiwi_trader · Jun 5, 2004

Perhaps I have been at this too long. I thought everyone knew that HTMMIS by WJO is How to Make Money in Stocks by William J O'Neill (the Canslim book).

Another way to learn futures trading that will excite just as much negativity as Grob is to look up WoodiesCCIclub on the web. Its free, although hotcomm will cost you money (the chat tool) after your free trial runs out, and it works.

There is a lot of discussion about esignal but the lowest cost way to get across futures trading is probably to use IB for trading and data and to use SierraChart to create your charts.

And its not full of negative egotistical psyches like ET. There is some good stuff here but its hard to pick out of the dross.

electron · Jun 6, 2004

Quote from kiwi_trader:

Another way to learn futures trading that will excite just as much negativity as Grob is to look up WoodiesCCIclub on the web. Its free, although hotcomm will cost you money (the chat tool) after your free trial runs out, and it works.

There is a lot of discussion about esignal but the lowest cost way to get across futures trading is probably to use IB for trading and data and to use SierraChart to create your charts.

And its not full of negative egotistical psyches like ET. There is some good stuff here but its hard to pick out of the dross.
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Woodies CCI is fine, as is SC when it comes to charting. And indeed, the atmosphere in the club is much more positive than here. As electron (charged negatively), I am much more attracted to positivity...