New trader

Discussion in 'Professional Trading' started by Bigbadadam04, Aug 11, 2006.

  1. Hello I am a 20 year old college graduate and I live and breath stocks. I have never traded a stock yet but I have researched and have gotten to know about the stock market better than most of the people who already do trade. I plan on opening an online brokerage account and use this strategy: (I want all of the experienced traders to tell me what they think about the strategy)
    I have noticed that when there is high volume on a particular stock, lets say Ford (F), the stock price drops dramtically and opens up an opportunity to short the stock, then once the volume has eased up and after checking the MACD for that particular stock to make sure that the trend is changing, buying the stock at the low and selling it once the MACD crosses again. Now I know that this strategy is not full proff but it works 8 out of 10 times when I choose a stock to research and study. It also helps to look at the level ll quotes to see which market maker is in control of stock and get to know each makers style.
    I know I haven't traded a stock yet but I just love everything about this game and want to be Completely informed before I jump in with 10,000 dollars. BTW anyone reccomend any good borkerage accounts??
  2. Cheese


    Is ET being hit by a barrage of spoof aliases?

    Hi I am a new clone registered number 11000432; I live and breathe just like any other human.

    I have a clone allocation reading Stock Market Affinity with a performance rating (scale 1 to 10) reading 1 maximum 2.

    I am programmed with a high mood intensity set at 'passion and passionate'. I haven't traded yet but I just love anything to do with the stock market.

    Can anyone help me with a recommended rebuild to a more useful or sensible specification for continued life in the US economy?

  3. What does that mean cheese, I am a real person, if you don't want to be a positive forum subscirber do yourself a favor and unsubscribe!
  4. I have one word for you; Emotion.

    It's all very well being a paper trading champion, but reason, logic & common sense all fly out of the window soon as you place that first trade using your own, real $10,000.

    Only when you bet for the first time will you know how well you can cope during the 'fog of war'.

    This is not to discourage you however. I think your underlying passion & enthusiasm for this occupation will help in guiding you through the inevitable low points.

    Be prepared to lose money, nobody learned to trade without losing money. When things become hard you must not deviate from your plan. Patience & discipline are skills you will need to continually work on.

    Don't second guess your system - you must wait for your edge to reveal itself. Do not feel that you have to trade every day. In trading, time is not money. Time is time, and money is money.

    It's not how much you make, but how much you don't lose. How will you feel when your hard earned $10,000 dips to $9,000, or $4,000? It becomes difficult to overcome large draw downs, best avoid them if you can.

    Finally, if you have a system that works 8 times out of 10, you do not need reassurance over your edge from anyone here. The only question is, can you follow your own system rules?

    Patience, discipline & courage.

    Good luck.
  5. :D
    Thanks, I understand what you are saying. The only reason why I wanted reassurance is because I never placed a trade and wanted to know that I wasn't crazy. Your right though and the same applies when I play blackjack for real money. My goal is to not be greedy. I plan on only making 100 dollars profit a day until I know my strategy inside and out.
  6. spinn


    Trade 10 share lots with Interactive brokers at $1 per trade.

    Yeah you will lose a few bucks becuase commission will eat up most winnings, but if you cant make points trading a $500 account, why would you do better with a $10,000 account.

    Then incementally size up......maybe every time you are up 10 points in total on trades only, double the number of shares.

    If that works you could be doing 1000 shares in six months and be rich!!!!
  7. The ultimate goal is to make a profit, I think 6 months of papertrading and research is enough. Im ready to use real money and make real profits, shorting at high volume and selling the same stock when it eases up, I understand what you are saying spinn and I will listen and start with only 500, but tell me more about IB, they sound pretty go when I researched them but it sounds like a scam. $1 a trade with only 10 lots, what about 1000 lots 5 dollars?
  8. You most likely wont make a dime for awhile (6+ months). The key is to limit your losses and trade very small. Learn learn learn from every trade (good or bad).

    I can tell you are motivated but you definitely arent being realistic. Saying you are only going to make $100 a day is completely unrealistic. That sort of consistency takes a great deal of time. Keep a level head and realize that you need to learn before you can earn and you'll be ok. Dont plan on trying to live off your trading profits for quite some time. Take it from someone who has been there before.

  9. $100 per day would mean you expect to make $25,000 from your original $10,000.

    Or put another, over 200% return.

    Consider that 20% annual return is the proffessional bench mark, if you were to make $2,000 in your first year, you'd be doing well.

    Read into the above what you will, but I would suggest not to be too disheartened when you fall a little short of 200% annual return. :)

    I also have to disagree with the gentleman who effectively said account size doesn't matter. Economies of scale count for an awful lot in trading.
  10. IB's real. You've done way more than enough papertrading, get your feet wet with $500 and see how it goes.

    As previously mentioned, the emotions are the real bottom-line cause of success or failure. You an understand every single SEC regulation and recite them verbatim. You can recreate every trading master's book from memory. You can have millions in paper-trading returns. But it won't make a squat of difference in the real markets. When you've got actual cash at stake, fear, greed and ego will rear its ugly head and the bambi reflex will stop you with analysis-paralysis.

    The thing with using a single magic-bullet indicator is that it works for that time-frame for that one stock you looked at. But market conditions will change, company performances and news will change. You always want to be adapting and changing with the market and use as many indicators as possible.

    Good luck! :)
    #10     Aug 11, 2006