Critical Questions I should ask myself.

Discussion in 'Professional Trading' started by ric, May 28, 2005.

  1. ric

    ric

    I've done some reflection and come to the conclusion that there are some critical questions I need to ask myself and then find the answer for, that will get me closer to trading.

    Please feel free to add the list or give an opinion/ answer for a question. Or even re write what you think are better self questions for a trader.

    1. What trading platform will I use? (probably alliance trader for a start)

    2. What market will I be trading? ( This one is probably the fuzziest to me as I really don't know the advantages of trading one type of market over another. If anyone knows a good article to point me to on the markets I would appreciate it.)

    3. Once I decide on a market, how do I decide what to trade, what criteria?

    4. What will my strategy be based on? ( I'm thinking indicators with historical backtesting to see what works and develop my own style.)

    5. What's my risk reward ratio going to be. How am I going to decide how to buy and where to sell or put stops?

    6. When I paper trader what will be my personal indicator to actually try and buy for real? At what increments should I gradually build up size?

    Sorry if this sounds fuzzy and newbish, because it is. I'm trying to organize my thoughts and get input from those who are successfull, stand on the shoulder of giants so to speak.
     
  2. kubilai

    kubilai

    Hmm, the sequence of questions you asked remind me of something...and it's right here on ET! Check out the training section on the top of this page...
     
  3. What's my edge over my competition?

    Can I realistically go one year without making any money?

    How much money am I willing to lose before I stop trading? (Something you really should decide ahead of time because if you get to that point, you won't be able to decide with a clear mind)
     
  4. 7 - Am I trading because it sounds exciting, sexy, prestigious or to get rich quick?

    Don't start if you answer yes to any.
     
  5. ric,

    I can only assume you are under-capitalized, because your choice of Alliance Trader.

    If you want to daytrade and avoid the PDT rule without having sufficient capital then this would be one of your questions:
    • Do I have enough Capital and low enough commissions to make this plan work? Do I think I can outtrade professionals who claim that would have a hard time to be profitable with ANY retail rates offered.
     
  6. j1900q

    j1900q

    I think it is time to get in the water, paddle around a bit and see If you might can swim.

    Keith
     
  7. Hello:

    I agree with Lescor.

    In addition, based on experience I would advise you to save your money and stand aside until you have more significant resources to draw on. As it stands today, your chances of making money are about nil. Sorry.

    If by some chance you do decide to wait, you should avail yourself of the resources here on ET by using the search function at the top of the page. Observe, ask questions, monitor daily and intraday charts, read books, participate in dialogues here and on similar sites. One thing you can be sure of. If you do this, at some point in the not to distant future, you will look back on this (with a few more dollars in your possession) and smile.

    Good luck
    Lefty.