Looking for a good starting point

Discussion in 'Trading' started by braderling, Dec 1, 2008.

  1. Hi all,

    I'm very new to day trading and i'm here seeking some sort of guidance. I've been researching on my own for a few weeks now, but must admit i'm a bit overwhelmed by all the information out there.

    I want to get into day trading because from all I hear it would be a good fit to my lifestyle and my skill set. I'm very good with math, I have a business degree, and a high tolerance for risk. I'm currently working as a finance manager for a large company. I have done my fair share or investing, but never day trading, and i'm not quite sure where to start.

    I haven't invested money into any software because I want to hear what you guys use first. I have downloaded quote tracker and have been fooling around with that for a few days. I'm also curious to hear about what a good starting strategy would be and what tools I would need to properly execute it.

    I obviously don't want someone to explain to me every detail necessary to be a succesful day trader, but it would be great if someone could point me in the direction of some good resources for someone at a beginner level.

  2. Practice consistently with a good paper trading program first.

    Thinkorswim has a good one and their charts are nice.
  3. High tolerance for risk is not a skill but a deficiency which you have to overcome.
  4. veggen


    Maybe a good starting point would be to figure out what kind of trader you want to be. A discretionary trader or a mechanical trader. Since you mention you are good in math, maybe a mechanical system based on statistics is the right way for you?

    Whatever you chooose, there are plenty of threads to choose from here on ET. Start simple. Learn all the basic stuff, yestorday high/low, yeastorday close, opening range, todays opening, pivots and so on, just to mention a few. Study on how these affect the market. You can probably make plenty of mechanical systems, as well as base your discretionary trading of simple hard numbers like the ones I mentioned.

    Just remember, there are as many different ways to trade as there are markets to trade. Some say indicators are bullshit, some say price patterns are bullshit, some say mechanical systems don't work, some say reading price action don't work. Do not listen to them or be as ignorant as them. Allways remember there are many ways to Rome. You need to find out what works for you, and suits your style and comfort level.

    Good luck to you.

    BTW: there are several threads like this one allready out here on ET.
  5. Considering all the bullshit obstacles facing the short-term trading business (taxes left & right being proposed) why bother with this shit?

    Right now, your odds are 10x better in 'Vegas.
  6. Indicators are virtually worthless. Just about every system I've bought and traded based on indicators didn't perform as promoted (without some degree of discretion/judgment involved).

    If you're interested in scalping the e-minis, here are some truths, and the necessary conclusion:

    - The futures market is a zero-sum game (actually negative, when commissions are considered).
    - In order for you to make money, somoene else has to lose.
    - The vast majority of traders use stops.
    - The majority of time that someone's stop is hit, they lose money (as opposed to exiting a profitable trade with a trailing stop).

    Therefore, find the areas where the stops are clustered and your trades will have the fuel they need to be profitable more often than not.
  7. veggen


    well written and golden words Sandy!
  8. bbqbbq


    I disagree. Not all indicators are worthless, if you use discretion. I do agree mechanical indicator based systems are usually crap if you don't put alot of time in making them yourself but buy from random guru's.

    Anyway good luck in trading. Poker is also a negative sum game (after taxes) but still people every year try to make it professionally. Even if there is a low succesrate don't let it discourage you.
  9. Redneck



    The OP posted on Dec 01, 2008 and has one post

    I wonder if he is still thinking about trading

    Take Care:)
  10. veggen


    Wow, I did not see that!

    Good karma for someone to digg up, blow of the spiderwebb, and set back to life an "old" unanswered thread from someone asking for help :p
    #10     Feb 17, 2009