Moral support and confirmation needed about starting trading for a living

Discussion in 'Professional Trading' started by tsmithyAussie, Aug 26, 2005.

  1. Guys, my 1st post ever on this forum. Hope its in the right place. If its not please let me know and I will repost.

    I want to go part time/quit in my sole destroying call centre bank job and trade for a living. Have saved over $150000 US and plan to start using V small trades of $3000 US or less and buy 5 or 6 stocks max at any one time..dont expect to make much for the 1st year, would be happy to break even and will use $30000 or so as total capital unless my mental maturity for risk allows me to use more. Will be trading on ASX.

    Have read over 2000 pages of books and like Dr Alexander Elders aproach trading for a living, even went part time to do all this study before retreating back to full time. I understand money management and psychology are more important than stock selection.

    I use metastock and end of day prices and tech analysis.

    Problem is I am totally isolated over here in Australia and have no one to talk too. The books all make it sound possible but is my dream realistic? I am aware traing is harder than being a surgeon or airline pilot.

    I have a trouble believing in myself and need a push. I have no one to talk to who can understand my position and ambition.

    Am I being realistic or a dreamer?
  2. ============
    may be best to trade part time swing trade;
    real time isnt much better till you learn,
    except real time gives much more pressure=not good till one learns.

    Youre already making same mistake most of us did;
    starting too big before one learns

    Wisdom is the principal thing:cool:
  3. ozzy


    Here's my advice:

    ** Start small.
    ** Be cautiously confident.
    ** Swing Trade at first.
    ** Test all your ideas. Then test them some more.
    ** Take time off from work and trade fulltime to get an idea of what trading is all about.

    I have committed every trading sin possible and lost money in more ways than imaginable. My over sized ego and un-ending self belief led to a lot of unecessary trouble. It is possible to make money but it takes time to get the experience and knowledge necessary to make it big.

  4. Check in at the Sidney franchise of Equis. Some sharp guys there and they have atech team in silicone valley too.
  5. Thanks for advice, I will be making my buy and sell decsions based on end of day prices and only plan to risk $30000 in my 1st year. Is this too big? The total 150K is in reserve if i survive that far (1 year)and temporaily it will be put with a fund manager.

    I will execute my buy and sell orders using an online broking website, luckily becuase I work in a bank call centre i have access to all their web sites so can monitor prices periodically through the day from my work desk. My current job uses about 10% of my mental capacity so I can almost multitask so to speak.

    Plan to use chanels to trade stocks that are already in an uptrend and wait until they are moving towards the moving average at a point of lower momentum and then buy and sell based on pre defined targets at a point of higher momentum near the upper channel line, with a stop loss below my EMA moving average. The way I want to trade means holding the stocks from 3-6 weeks from my research.

    My objective for the 1st year is to see simply if I can stick to my price targets and overcome all the psychological hurdles. I want to focus on the actual mechanics of trading and if i can get this right then money should come as a bi-product. Thats my idea?

    Plan on keeping a trading diary/detailed spreadsheet for feedback so I can quanitify my mistakes.

    Any more advice anyone?

  6. Is swing trading more difficult since its holding stocks for very short period of time? The aproach I have outlines above fits my personality, have not looked into swing trading. It was not detailed in the books I read such as Dr Alexander Elder's book Welcome to my trading room. I also read most of Darryle Guppys books and he does not talk about swing trading.
  7. thanks Wallace, i,m going to check out those rooms:)

  8. Choad


    Search ET for all posts from "40yotrader"

    Here's a head start:

    This is one of the very few I've seen "get it right" quickly and be successful. Assuming the posts are real, but they sure seem legit to me.

    How did he do it? Plenty of money and extreme preparation. Futures, not stock swings, but he may do both.

    Can anybody do it? No, but it may give hope...

    Good luck.
  9. You are wise to not worry about making $$$ for awhile. I would suggest a trading simulator (even if you have to pay a monthly fee) to get your feet wet.
    Some will argue that sim trading is useless (since it doesnt involve real $ , and supposedly your psyche plays tricks on you (false sense of confidence) but I disagree.

    If you cant make $$ on a sim consistantly, there is no way in hell you can make it with a live account.

    Trade for a few weeks/months. if you are getting relativley consistant positive results switch to real $$ and trade small. from there amp up the size as your account grows.

    ** Understand taht playing with real $$ is different from the simulator. You will act and trade differently, due to seeing losses on your screen. But many say this is part of the maturation process.

    good luck!
    #10     Aug 27, 2005