How to trade. . .

Discussion in 'Professional Trading' started by eagle488, Sep 20, 2006.

  1. I just registered as a member here and it appears many guys who are beginning have that one unanswered question "How do I trade. . ."

    All you have to do is go to and get Trading for Dummies and Technical Analysis for Dummies. The "Dummies" books are the best for guys just starting out. I know its a silly title, but this is the book if you want to start out right. You can probably get it for free at the library.

    Another key book is the Traders Almanac. Its key to know the events and the historical trends.
  2. I read Technical Analysis for Dummies when I first started. Barbara Rockefellar is no dummy. It's not a bad book.

    But I would say it is a little naive to think that reading trading for dummies and TA for dummies will immediately set you on the path to wealth. There is a lot of trading education out there and some of it is actually helpful. Better yet, it helps to associate with success minded people already getting the results you want. That is true of any business.

    Best of Success!
  3. I agree 100%.

    The "Dummy" books are just for starters, like reading the driving manual at the DMV. This is my suggested list for reading:

    - Reading Financial Reports for Dummies
    - Economics for Dummies
    - Exchange-Traded Funds For Dummies
    - Futures & Options for Dummies
    - Investing for Dummies
    - Stock Investing for Dummies
    - Stock Options for Dummies
    - Trading for Dummies
    - Technical Analysis for Dummies
    - The Complete MBA for Dummies

    Each of these books is at least 300 pages long and at the end is another list of books that will dive into more advanced concepts. Then after all of this endless reading (and then obtaining additional books to read off of the suggested list as well for advanced concepts) my next suggestion for a person starting out would be the following:

    - trade on a mock platform using simulated trades

    -when you feel comfortable, trade using a starters account of a fraction of the money that you plan to use. example: If you have 100,000 then trade with 25,000.


    - when you feel comfortable, start using larger amounts from your main cash pile

    I highly suggest to mentor or apprentice with someone who seems successful at trading. However, most people will probably not have that kind of access to a successful trader. My bet is that most people will probably just start out solo.

    One other thing to keep in mind is that a person who seems like a successful trader may not be. For example, a person who traded in and out of either Hansens or Google in the last few years may have seemed like a successful trader. However, they were simply riding these stocks up. They just got lucky and were really a version of the "order taker".

    A true trader will make things happen whether it be a bull or bear market. Whether large caps or small caps are the rage. etc. They will recognize the flavor of the day and use a strategy to take advantage. Whereas a trade who happened to be lucky riding stocks like google up are not real traders.

    While I do not know the entire story of what happened at Amaranth, there are some questions that come to my mind in regards. Was Brian Hunter really a successful trader or was he simply a guy who got lucky getting a job at these firms and then simply rode up the bull market in energy? Honestly, anyone working at these energy trading desks during the bull-run would have had a great chance to make lots of cash.

    Now the bull-run in energy is over and it looks like Brian Hunter's true skills are showing. Did it really take a genius to figure out that the bull-run in energy was going to end this year?
  4. SteveD


    People who "got lucky" "rode GOOG, HANS etc up" may not be "real traders" but they are REAL SMART....

    You have a very silly idea of will lose all your assured...

    Most big money is made on very few good trades....knowing when not to trade is the smart move...

    Read Bill O'Neill's books....basic understanding of how market really works....

    Good luck but don't give up the day job just yet...

  5. Whats so silly about my idea of trading?

    Reading books? Strategizing and practicing through mock trades before using real cash? Does that seem "silly" to you? Really. . . Keep in mind that I wrote the above message in regards to someone who has never traded. However, even someone with years of trading experience can learn from mock trading and reading books. No one knows everything.

    In any event, I am very comfortable with my trading strategies and have made enough money to satisfy me.

    Sir, I do not appreciate your condescending remarks in regards. I dont believe my message about self-education and practice was so "silly" as you bluntly stated.

    Lastly, how were the folks who traded Google and Hansens "real smart"? Come on. . .Did it take a genius to figure out that Google and the Monster Energy drink were going to be real hits? I dont believe that was an act of great brilliance or achievement.
  6. I'm sorry to say Eagle, that you will find that a good majority who post on this forum are severely diseased with negative thinking. If you say something positive you will be attacked.

    This of course, is extremlely destructive to the success of anyone who comes here. I find it more helpful to associate and interact with positive thinking success-minded people.

    I would direct you to a more positive trading community but if I do I will be attacked and accused of trying to sell something.

    Anyone who tells someone else that they will lose their money trading is disturbed inwardly themselves and resents the idea of someone making money which, of course, is due to anti-wealth belief systems or "lack consciousness". The fact that it is the norm here is, let's say, cause for a little concern.
  7. (Barabara Rockefeller website)
    the - sign means minus.
  8. Damn, just when the newsletter business was showing signs of life again.

    addendum: I think her pooch is still alive... HYPOTHETICALLY, that is..:p
  9. nkhoi

    nkhoi Moderator

    roller coaster performance, only suitable for people who has 20K to burn each 3 months and it burn well indeed. :D
  10. According to the name of her book "Technical Analysis for Dummies" , I think she is an honest person. :D
    #10     Sep 24, 2006