Could I get a little advice on where to start?

Discussion in 'Professional Trading' started by miatamatt, Mar 19, 2010.

  1. How did everyone learn to trade? I have $2k to open a trading account with but before I do I want to study. This is money that I could easily walk away from not if but when I lose it. I know some basics but that's about it. I have read a couple of great books Market and New Market Wizards, plus a couple others. Again I am really new to this but this forum is great and full of useful information. I would one day like to become a day trader but I don't have the capital to start an account so I'm looking to swing trade for the mean time until I can build my account more. Im not relying on this for any source of income right now, but one day I would. Any tips on where to begin?

  2. Redneck



    Set your money aside for now

    Set up a sim account, pick one stock, and learn to trade it consistently... While doing this create a trading plan, and a journal

    Trading plan = What you should be doing..., Journal = What you are actually doing..., Ultimately the two need to match

    Stock suggestions = ATR .50 cent to .85 cents… Average Daily Volume = >1M

    Keep however you trade & your trading plan simple... thorough… but simple

    Maybe read Trading in the Zone... But limit what you read significantly - because the more you learn now - the more you’ll need to unlearn later

    Do a fair amount of searching and reading here

    Also lean to set aside your ego and opinion, and follow price

    eta - Learn Risk Management - This is a must

    Much Success to You

  3. dozu888


    pick 1 stock or ETF, such as SPY - stare at the price - price alone, for 10,000 hours.

    wax on wax off.
  4. Thank you very much RN. Im having a hard time understanding how to find ATR. Ive googled, but Im not really understanding it.
  5. Redneck


  6. LeeD


    Redneck_trader has listed all the important points. Remember, if you don't make maney on atrde simulator, you need to be exceptionally lucky to make money in live trading.

    ATR is Average True Range
  7. It doesn't usually work like that.

    What it does usually work like, is this:

    You used 2k to open your account. Your made your first trade. Wow! Got $400 in a few days. Your eyes opened. Then you rolled again. A few trades or few weeks/months later, your 2k became 4k, or 5k. That's EASY! I can do this!

    You then wanted to manage the account for your parents, for your friends, you would convert your retirement accounts to an IRA, and borrowed some money from family and borrowed even more advances from credit cards. You then betted with 20k, 30k of new money.

    That's when the market hit you...
  8. And then 5 years later, after trying 800 different methods to invent a light bulb, you realize you are no Edison, and either need to learn how to trade or give up, some $50K+and 6,000 hours poorer

  9. ooooook I think I understand.

    Find the range for the past 13 days, add the 14th and divide by 14? and thats the ATR?
  10. Oh wow. :eek:
    #10     Mar 19, 2010