enkidu let's step back and think about this for a minute. you're asking if there's a mechanical system, an advisory service that would make you money consistently, right? IF there's such a system, why would anyone in their right mind would let you in on it? the reason mohan or other services sell their calls because they know they don't make money all the time and the monthly charge you pay come in handy. if you love to trade, learn how to trade properly and profitably, papertrade, actual trade, etc. if you only love the potential money without real work, you are in for a surprise. oh boy ) huge surprise...
There are many books that give little pieces of the puzzle, but nothing step by step. If it was so easy to make money for life buy reading a single book, we'd all be billionaires. As for floor traders making money, certainly.. but they paid for their edge.
How much work will it be? My real profession is a loaner (mortgages, car loans, boats, etc.) and I do B and C tier loans (the ones that banks won't touch with a 10 foot pole, bad to very bad credit). I make decent money roughly around 40k to 50k a month net. However, the work sucks, it's not exciting, and very tedious. I have friends that claim to make 100k plus a month day trading, I don't know if it's true or not but they do seem to have a very rich life style. I'm just looking for a advisory service that will so me the ropes to daytrade the S & P or a mechanical system I can punch into tradestation and let it run. I don't need a good return just about 5 to 10 percent a month. I'm just asking if anyone knows of such a system. P.S. I cam across someone who claimes to work for Dunn Capital and they said their fund just uses a program and doesn't require and traders. Fully automated and averages 50% a year, is that possible?
Check out http://www.tfnn.com . Tom O'Brien broadcasts 2 shows over the internet 5 days a week at 9:00AM and 3:00 PM Central time. Tom discusses issues pertaining to trading and analyses individual stocks based on price and volume as advocated by Wyckoff (I think I spelled that correctly). He also takes calls and does not mind answering newbie questions. I have no affiliation, just want to make some info available. Good Luck, Louie
Very few daytrading systems have ever tested out well over time. www.futurestruth.com has a wealth of data on them. There are many books out there, as you know, but most are useless or at best have only a few tidbits. There are plenty of guru sites and commentators on various sites that claim to trade profitably. Since a good trader can make a fortune, you have to wonder why some guy would waste his time writing a column, books, giving seminars, etc if he could crank out the cachingo day in and day out. My advice, based on long experience, is as follows. First, trade no more than one contract until you are consistently profitable on your own. It's a lot easier to lose money than make it for some reason, and you want to have something left to trade with when youfinally learn how. Second, get some backtesting software and spend a lot fo time testing everything under the sun. You will learn that all the popular indicators are no real help. If you're lucky, you can begin to uncover some relationships, patterns, tendencies, etc. This is a probabilities business, not one of certainty. Watch the markets carefully all day, particularly the first and last hour. There is no substitute for experience. When you notice soemthing, code it and backtest it. Develop one pattern to trade, and use iron discipline to trade only that pattern and trade it exactly by your plan. Good luck.
But Dunn Capital also goes through substantial periods of severe drawdowns. And they are trading long term trends, not daytrading. You've first got to get the mindset for trading to better understand and endure the rough path ahead for you. Read "Trading In The Zone" by Mark Douglas. If you're making $50K a month, don't quit your day job, I don't care how boring it is. But if you do quit, get me in to take your place Long term trend trading is even more boring than your job. Things can be boring and very rewarding, apparently. Don't confuse action for profitability. Make your primary income from that well-paying job of yours. Invest some funds you can afford to lose with Dunn, perhaps, and let them do the trading for you. If you absolutely feel you must trade, when you're ready to trade (see below), take $10,000 or so and trade small lots at first. Your inclination to act opposite of the calls you're given will lead you to further losses. Don't succumb to such anxious-based decisions. It's akin to thinking that if you just run fast enough, you can run across the ocean without sinking. In other words, it seems likely, but it's dead wrong. You don't have to do anything today. Or next month. The markets will be there for you tomorrow or next month or later this year. Learn first. Then act on what you've learned. Just like anything else in life that you wish to do well.
I dont understand why people would even consider using advisory serivces. Trading off "hot tips" is the stupidest thing I have ever heard of. Learning how to trade yourself is the only route to take. Be a player in the game...
I am learning to trade stocks too and have found Tom O'Brien to be an awesome resource since I have started listening to him. Even if you do not trade his system, he is a professional and you can listen and learn. I am a visual learner as well, so I love the charts. I've been keeping track of Tom's shows for the last month or so on my web log. I try to summarize Tom's thoughts in several phrases and provide a stock chart of the equity. If you are interested, you can check it out at: http://tfnnstocks.blogspot.com/ I have an RSS feed on the site if you're interested. Thanks and good luck! -Kevin