How should a newb trade 50 K

Discussion in 'Professional Trading' started by mrfong8, Apr 29, 2005.

  1. mrfong8


    i had another thread but it wasn't written very good, so i figure i try another thread and address my situation more specifically.

    i am new to prop trading and getting confused in a mixed up working environment. There isnt any mentor i can seek out for , nor are there any traders that like to discuss things.

    I can't seem to get good advice from manager either because he seems to only offer advice that encourage heavy volume trading.
    He kept emphasizing the effect of making 1, 2 pennies on millons of shares.

    So what can i do to improve trading? I have read lot of fundamental, TA, market psychology and some other market books, but not many directly target at trading. i do buy every issue of SFO, ActiveTrader, and i still find nothing very useful .

    So please if any one can give me some points on how to pick a direction, form a plan and system

    I will greatly appreciate

    PS i have about 50K w/ the firm. i think should would give me a lot intraday BP, by i don't want to use too much leverage on it for now. How big of a position should i take?
  2. I think you should take the largest possible position on Monday and roll the dice. One way of doing that would be to take a New York Times and open to the stock tables. Tape the page on the wall and throw a dart. Whatever stock the dart hits, just put it all on that one, and hold on until you are either broke or a millionaire. Believe me, this is the best way to start your career. No matter what happens, I predict you will always remember Monday as a very special day in your life :D

  3. mrfong8


    if that's the best you can tell me , thank you
  4. Again, you are not at a prop firm. You are at an arcade that is selling itself as a prop firm. Why? Because a prop firm puts up the money and takes ALL the risk.

    In your situation, you are basically there to trade using their licenses and network. Hence, they won't mentor you and you won't get trained. All you are is a customer who pays commissions.

    It doesn't answer your question, but I wanted you to be clear on that.
  5. LaSalle


    There is no better way to learn than to lose the $50K.

    You'll learn real quick that "fundamental, TA, market psychology" are meaningless without a sound risk management strategy.
  6. Alright:

    I shouldn't be screwing around with this. I am supposed to be on vacation. Anyway, I hope you understand that I am not serious. Also I would direct you to the point that FuturesTrader makes. You are simply paying for a desk and the right to trade. Obviously you have little or no training and you aren't going to get any from the arcade you trade from. Bottom line is your odds of making money are very poor. What can I tell you. Take some time and read some of the posts. Maybe you will find a way to approach this that give you a better chance of winning. And now, back to my vacation.

    Good luck,
  7. You should risk nothing unless you have a strategy you think is going to work for you. It might take you months or years to find something especially if no one is training you.

    I would trade as few shares as you can to test a strategy you have learned that you really think you can make work, if you are even able to find something or get someone to show you something. Even with a solid method you need to get good at managing yourself.
  8. The reason why you go prop is to learn how to trade the way professional floor traders trade. The business model is the same one that floor traders use, and it is a legitimate model.

    Your time frame should be intraday, to a max of 2 - 5 days in my opinion. My experience tells me that if I am in a trade for more than two days, I better buckle down and get ready to withstand some pain. You are looking to find a consistent, tradeable strategy that you can trade often and ring the register daily with. From here, you add another strategy and build your trading business similar to any other. The focus is on simply making some money every day, then, you will have the confidence and the cash flow to grow your capital account and your business.

    The first step is to find a theoretical edge that you can work with, this might be opg orders, pairs, etc. The second is to seek out a mentor and get some good quality training from them. Ask to see P&L statements, etc.

    If you would like some mentoring, I offer FREE mentoring to traders. Send me a PM for the details, and we can go forward from there.

    Good trading to you!

  9. mrfong8


    thank every one again

    i probably will only buy no more than 500 shares for now, the more i trade the most i realize why you need a system, because i sometimes would act differently to the same situation, or act similiar in different situation.

    O thats' what arcade means.......... is that a analogy or a real term?
  10. It is a real term. This setup is also known as retail trading, customer trading or bucket-shop.
    #10     Apr 29, 2005