New to trading, education needed!

Discussion in 'Index Futures' started by rquerry, Dec 29, 2007.

  1. rquerry


    I'm new to trading futures, but extremely dedicated to becoming successful. I may have to change careers in a few years! I'm looking for some experienced advice on education options. I'm willing to put in the time, but would like to skip stupid mistakes by getting a good education. I"ve already experienced the pain of a $5000 schoold that didn't do anything to prepare you for real trading. I've been following threads on ET about another group (TTM) that I almost bought into but posts on here have not given them much praise, I've heard both sides of "indicators are good/bad", no way to learn but experience and hard knocks. Not sure I believe that or hope that is not the case. I've been an educator for 15 years and I know the power of a good foundation and education. I would welcome any comments, suggestions, advice on good educational programs, resources and also any thoughts on indicators to assist the new trader. I also know that thoughts vary on chart and platform packages and would like advice.

    I'm going to do my part and keep learning and reading on this forum, I just wanted to look for some specific help.
  2. ark


    I had similar thoughts when I first started out. So I approached my brokerage for advice. I was also looking to have a good, educated head start. It would happen if you're with a trading firm, securities company or some sorts.

    You won't go wrong getting a few good books on trading and building up from there.
  3. well what is the point of giving you advice when you won't take it, everyone I know including me had to learn the hard way despite good advice given, am I to believe that you are somehow different.

    well....I'll humor you and give you advice. Ignore news, Ignore public indicators, Ignore trading books and ignore people trying to sell you trading materials or signals

    make a custom indic based on price established support and resistance and pay attention to momentum and timing

    good luck
  4. Sidhatta Gautama gave the best advice: "Fare lonely as the rhinoceros." He also advised to be a lamp unto yourself. Create a price- and volume-only chart of the future you desire. Watch every change of every minute. Make the market your meditation kasina. Be open to those events which cause the cry spontaneously to erupt in your mind: "Why the fuck did that happen?" Soon you will understand.
  5. sadly less and less people understand hypo's humour, future will consist of people lacking vocabulary to even symbolize their immorality let alone explain it. Just glad I'll be dead :eek:
  6. Humor? You could not teach ET with a rhinoceros humerus. I was merely describing what I do for 405 minutes every trading day. WTFDTH moments provide most of my trading signals. Price inexplicably and quite vigorously reverses in mid-air at no discernible S/R. A picture-perfect price progression suddenly snuffs out, reversing four bars of gain, with a PV pattern that looked like otherwise successful ones. Some asshole on ET points out that double bottoms by +/1 tick are reliable in ES, and it quits working. The Buddha understands, wherever he is reincarnated now, if he trades. The Four Noble Truths apply to trading as to everything else.
  7. Pardon my typo's, I don't have time to proof it. Not that it would make much difference anyhow :(

    Pay close attention to rising levels of resistance and falling levels of support. Fading penetrations of these levels offer good risk/reward trades. The faster a support/resistance level is falling/rising the higher the probability of the trade if a penetration occurs. If you are trading futures don't even consider trading breakouts, but many here on ET would disagree strongly with this. That's perfectly fine if they can make it work. I suspect you won't be able to but I could be wrong.

    Your order of priority goes as follows:

    Money Management
    Risk Management

    Timing the market consistently is impossible. If you make this a priority you are destined to fail. Your stops will get triggered right at the tops and bottoms of the market and even if you winners outpace your losers there's no gaurantee you can make more on your winners than you give up on your losers.

    You need to take ane extremely close look at your personality. If you don't understand your personality weaknesses and/or strengths you cannot formulate a trading plan that incorporates <b>you</b> into it. You are the pilot of whatever method you choose so if you don't fully understand yourself you'll never fully understand the plan. What are you defects? Impatience, ignorance (as far as knowledge is concerned), aggressiveness? Your answer may be no to all of these but you certainly have some personality traits that are counter-productive to profitable trading -- we all do.

    For example, my biggest character defect is impatience. I just cannot wait for the market to reverse. If the market is moving I want to be trading. I'm sure you can appreciate how detructive this was to my trading career. I didn't have a chance until I incorporated that problem into my trading plan. I fixed this by developing the willingness to take triggers at the exact tops and bottoms of the market and having a plan B for when they failed. If a profit is offered to me I just flat out take it. I don't want to wait for more profit (at least on the full line) because I don't have the patience to do so. If you can find these kinds of problems and fix them you have a chance.

    Read "Trading in the Zone," by Mark Douglas as many times as it takes for to live, eat, and breathe, thinking about how you can get to "The Zone" This book is very, very dry at times. You have to be willing to get through those parts. If you can you will be rewarded for it. Personally, I've read this book about 8 times and I will never stop referring back to for as long as I trade. This book acts as my trading coach. Even Tom Brady -- arguably the best quarterback in the game -- has a coach. Many coaches in fact. Trading is a dedication to life long learning. It can be done!

  8. Oh, and if you want to trade futures spend as much time on a simulator as you can. I traded SIM for 2 months. I turned 40k into 80k the first month and 80 into -100k the second month. I knew I was ready when I blew it up. Global futures will give you a demo for a month. Give them a "pretty please" and they will extend it another month. If not, open an account and tell them you need another month of demo while the real account sits. They will accomodate. They get paid on the number of new accounts they generate.
  9. Here is an example of a fadable setup. Finding the exact trigger takes a little practice but once we fall below a <i>falling</i> level of support you should be ready to buy. This is a very bullish occurance. Take a partial once the trade is showing you a profit because this could easily go to a new low, because, after all, anything can happen.

    Also, look at the volume coming out of the market down there. Simply buy when the selling has finished.