Trading fulltime for 3 yrs, I often think about all of the "talented" traders who have gone by the wayside. I think about the training I had at the various places I have been at and how I would do it differently. My quick list: *make it very clear upfront, to learn how to trade properly, the first couple of months, learning proper execution of a proven system will be the focus......not making money. If you can't put in a few months to learn, don't start. No delusions of granduer. *Trade ONLY in the direction of the dominant trend, no counter trend trading for newbies. * Have Profit targets (as opposed to only learning about stop losses) * Learn the difference between a good day to make money, and a choppy day. Learn how important it is to "make what you should on good days." If you make $300 easy dollars on a very good day to trade and should have made $1,000, it was a bad day trading. *always know where you are in multiple time frames. *develop your own list of "what not to do" this is just a quick list - what would you do? DTP
A. Be a beginner (1 contract only on a mini) ES for example. 1.Trade on fast trends only (4 points in 30min rate) with high volume (10 to 12K minimum). Enter and exit only. 2. Sideline all other times and be able to wash (go flat with no loss) everytime 1 fails. 3. Learn P, V relation. 4. Always use stops. B. BE an intermediate: Do all A above and add: 1. Trade all trends using a channel method (Pt1,2,3). 2. Exit at S and/or R always. 3. Reverse on slower trends not at S or R level. 4. Sideline when volume is below 6,000. 5. Bracket entry after all congestion ends. 6. Use multi contracts up to partial fills conditions. C. BE an expert: Do and A and B above and: 1. Trade at all times. (Exception: if consolidation at S/R is less than 3 pts in amplitude) 2. Recognize when market is in continuation part of P.V relation. 3. Recognize when market is in change part of P,V relation. 4. Trade all trend duration concurrently and independently (lgt, IT, and intraday) Currently: long (FBO saucer), short (leg 3 of Quarter) and n/a (this is normal), respectively. 5. On intraday, work with three independent analysis levels: background perspective; routine bar to bar action (trend analysis major effort); and, as required, intrabar additional protection action (wash and reverse). 6. Operate at a multiple of daily H/L level when all aspects of 4 are summed. How training deals with inculcating the learning success is tied directly and only to results. To use a term that is common in ET, It is patently ridiculous to think that a person can start out using a "proven system". This is the killer screw up most people are subjected to by those who think they can teach. Prima facia, if a person unloads a "proven system" on someone, they are if fact teaching "failure" as the primary effort. All people who have "fear" in their NLP set, got it from a person foisting off on them a "proven system". Results means consistent profits according to what the market offers. Fast trends account for 25% of the daily H/L. Slow trends account for 50 to 75% of he H/L. Continuous trading exceeds the H/L. Additional Protective Action, as an intrbar activity, will turn at least 1/3 of all trading from marginal to profitable each day and roughly equal the H/L ratio. 25 days of trading per level of learning and trading should be adequate to triple the initial capital of the beginning of that period of learning to it's end. The equities equivalent of this stuff is now running at 30% profit for the first month of training and trading short term. About 6 weeks puts person in a free standing place where about 8 levels of further improvement are possible. The rudiments of most levels will be consciously understood but not practiced at the six week point. Profits from futures are rolled over into equities commonly to keep the futures method within bounds.