How would you start to become a succesfull trader?

Discussion in 'Professional Trading' started by Tagfish, Mar 3, 2009.

  1. Tagfish


    Hi there!

    I´m a newbie here in the forum and I´m looking for some advice for a starting trader.

    I know that there is no simple way to learn trading and that I will not get any advice "how to do it" to become a profitable trader.

    But how about the "how not to do it"?
    When you are a succesfull trader: When you would have to start your way again, which way would you say is the most effective?

    I played poker fulltime for the last three years and finally I´m burned out and bored to death by all the grinding.
    It might be a small advantage that I had to face similar psychological problems like a trader (downswings, tilt etc.) and I was able to come over them. Also I have enough funds for at least three years of income + a solid bankroll to start.

    But "how" to start most effective?

    What I learned form reading here:

    - avoid these chatrooms
    - no profitable and solid trader will help you

    sooo, what to do?

    Pick a method I like from the first watch and start trading (paper or small lots) and go from there via trial and error?
    Screentime, screentime, screentime....
    Sounds to me like the "circle of methods fistpump" that will get me.

    To make it short:
    When you are succesfull at trading, what would you do (or do diffrent this time) if you had to start again.

    thx a lot

  2. K.I.S.S...price and volume

    Learn what drives the money.


    Richard Wyckoff
    Tom Williams(Wyckoff simplified)
    Peter Seidlmayer
    James Dalton

    Forget: Indicators
  3. 1000's of hours of screen time with purposeful intent. Finding Price and volume correlations (what I use but you can do whatever you see fit) and basically an understanding that, realistically you should plan on at least 1-2 years of no income from trading. Lots of pattern analysis and the ability to learn from mistakes is key.

    Good luck :)
  4. Your background in poker is an advantage in my opinion. One of the more successful traders I traded alongside made exactly the transition you are making.

    I take it you are quick with numbers.

    Unlike most starting out you have the key benefit of having some savings.

    I recommend getting familiar with MS excel and get good quality historic price and volume data. You are then limited only by your imagination so that when someone claims that if X then Y you can check out if its true and you can do any what if analysis of your own.

    Go to blogs such as MarketSci for ideas (threre's many more).

    Avoid advice on trading that can't be tested. It's not all BS but a lot of it is and these types hide behind the unfalsifiablity of their methods. Be numbers driven its a more solid approach than technical analysis.
  5. 1-Define your style.
    Do you want to scalp, day trade, swing trade or position trade?
    Technical, fundamental, all automated,...?
    2-Buy the gear that fits your need. For intraday things you way want 2-3 20" screens and things. See the thread "picture of your trading station" or something
    3-Get your feet wet. Make a trade, whatever it is, just do one, win or loss dosen't matter, better a loser. If you win you may get overconfident and think your a chosen one. this is just to get a "feelling" for the thing. You've been a player so in a better position than an employee but it's still always freaking to watch the P/L real time.
    4- Read a lot but dont get lost. The KISS can be your savior.
    5- Test your method for positive expectation if you can.
    6- Learn about money management. This will be easy for you. I actually got some good insights from a poker book.
    7- Start by playing small size. Paper trading is good to test the platform and getting used to the order type but without money on the table it's like playing poker without money on the table. You can fool yourself.
    8- Adjust and adpat. This is not an easy game and it's always evolving.

    Good luck
  6. Yeah, this is it. Play the numbers. It's all about positive expectation. A lot of small (or big) wins, a lot of small loss and the wins must exceed the losses.
    Also, get a broker where you pay low comission of your going to daytrade. Much less of an issue for swing trading.
  7. Absolutely correct.
    Also, only trade one underlying. Get to know it, get to love it.
    I trade the ES now, traded ER2 for years but stopped when it moved.

  8. Developing a passion that relates to your own personal knowledge and study of the market helps. Not a passion of reading books and trading theories.

    Focus on the big picture and keep examining closer and closer.

    If you want to become a physicist you don't start off by trying to gain a deep understanding of Einsteins theories. You learn algebra.

    Even Einstein had to learn some basics.

    If you skip the basics and the necessity of knowledge to gain a deep understanding you could watch a successful trader all day long and yet never learn how to trade successfully on your own.

    Take a look at this- 100 year trend, 10 year, 1 year, 9 months, 6 months, 3 months, 1 month, 2 weeks, 1 week, 2 days, 1 day and then develop ideas of your own.
  9. elit5314


    its nice to have a secretary and teach her your trade set-up and then keep a watchful eye on her and the trade.
  10. Redneck



    I will tell you exactly what you need to do to become successful

    1.) price going up – go long
    2.) price going down – go short
    3.) exit when price stops doing either one

    Oh and btw – program you head to think like a trader

    a.) No one, and I mean NO ONE – ever knows if the market, or a stock – will go up, or down – but we don’t care.... we know we will make money either way

    b.) A trader will have losing trades, and winning trades – We know neither one matter, nor will emotionally affect us

    c.) The market is

    d.) I think what I think, I believe what I believe, but – I know what I know

    e.) It is what it is

    Get you head wrapped around a – e, and do 1 - 3 – you will trade successfully

    This could take you – a day, a month, a year, or a lifetime – that will be up to you

    #10     Mar 8, 2009