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Newbie

  1. I'd like to first wish everyone a Happy Holiday and Happy New Year. Lay off grandma's secret nog...

    I'm obviously new around here, and from what I've gathered - there are some impressive strategies, systems, minds, etc. Being a newbie not only on this site, but in terms of trading, I've realized that from reading on so many different strategies - I've suddenly become confused.

    My ultimate goal would be to get into scalp trading. But before I jump into any unknown waters, I would deeply appreciate some feedback. I have no formal training in trading, whatsoever. I'm from south Texas, and thus the idea of finding any firms down here is out of the question at this point I'm not sure how to go about studying, training, etc., for this sort of trading.

    I know and understand that this type of trading, like any other, is a huge risk - and the chances of me holding a cup out in front of Wal-mart is a possibility should I choose this path. I would like to start with about $15K. Thus, I'd like to read what anyone's thoughts on scalp trading are. I greatly appreciate any input. And again, Happy Holidays to all..

    JFN
     
  2. Thanks,
    1/ Scalping is for experienced only, not for you
    2/Put your money in the bank and educate yourself first.
    3/ Pick one market , develop trading method , backtest it then trade it on a simulator .
    4/When you think you are ready open 5K account and if you lose it do not trade till you save another 5K. DO NOT use 10 K left in your account !

    Walter
     

  3. After the 1st of the year I'm going to start a journal for newbie traders. This should help to speed up the process of the learning curve for newbies.
     
  4. Good idea!

    sulong
     
  5. make lots of sense I am going to forward this to some one asking the same question and Brandon site is good for education too.

     
  6. Better advice ...... Go to work for a professional firm and let them train you, THEN go out and trade. There is no substitute for this type of experience and it is far more useful than the numerous books, videos, "systems", backtesting software etc being hawked by hundreds of firms and individuals. Most of the noise you will hear on this board and at trade conferences comes from people selling products or training and you need to be realistic about all these people and firms and acknowledge that msot of them would be trading using their own product or service if was valuable.

    Trading is really quite simple and once you learn how to do it and have the proper capitalization to get into the business the odds that you will be successful increase.
     

  7. don't you need some credential to get hire, Hitman is having hard time just to get an interview.
     
  8. Yes and no. I had no credentials when I started and I just happened to know someone who referred me to the right people. This was all before I had credentials.

    "credentials" are just excuses to exclude. If you know the right people and are willing to stick it out by starting at the bottom of the ladder - even with "credentials in order to get in the door - you can get into the business.

    I used to work on the trading floor with the now president of the cme and their clearing house. This fellow had bounced around various jobs and exchanges working at the lowest level clerk jobs - He had an MBA and some experience already. He came to the merc and took a job lower than his job at the CBOE. After a few years he managed to wrangle a job in the clearing house at a level more commensurate with his experience and has proved to be a valuable leader at the exchange.
     
  9. then you need the right connection, which most newbie lacks. But I understand what you mean, you gotto start somewhere, ok.
     
  10. Newbie will be a great example for anyone starting up.

    South Texas is like anywhere USA.

    Newbie started out a while back and is drawing a lot of conclusions. Too bad in a way. But that is where it is for him.

    I recommend that he get a pal to help him out. sort of check out the local scene to find out the names of a few locals who are getting the job done.

    He probably will not find too many scalpers though. several have suggested that there are other ways to learn to make money prior to the scalping modus. Two things can happen: he can find out there are other very high reward approaches besides scalping and or he might determine scalping is not for him after all.

    15k in equities can make him about three grand a month with an abvove average mentor who gets it done in equities. It would be like a slow motion prep for getting into trading.

    To start right off in scalping at low risk, he could pair up with someone who uses a technique of trading the ES as a lagging index of YM or DJ relative to INDU. Just do the "squeese"/"stretch" monitoring on YM vs INDU and trade the ES using the time lag to make plays. Today the squeese is -5 to -3, neutral is -2 to +1, and stretch is above +1. (the offset is -30, so 0 is a 30 point shift). This is a simple way to use a leading index to give you trades (scalps) on a lagging index.) You only get about 40 trades a day this way and that's having to buy 10 points of spread right off (nononsence needs to read this so he is oriented properly for my comments). But you make 40 times 2 or three ticks net after that. A one contract beginning level for about 45 days will get the ball rolling. After that, he could do some non scalping trend stuff and practise some scaling in and out too.
     
  11. Just keep talking to people and hopefully you'll find yourself in the right place at the right time talking to the right person.
     
  12. I look forward to reading this journal, thanks in advance!

    another newbie trudd
     
  13. I have to agree completely!

    Most trading education that is does not involve actually trading is usually rubbish. There is about 1% of useful information and 99% disinformation. A newbie won't be able to spot the 1%.

    Learning, and reading is good and all, AFTER you had experience as a trader - and is done to IMPROVE trading, rather than learn trading.

    Therefore, a newbie should go to a firm that will let him try it out on their capital - and learn on trading real money (very small size).

    Similation is good to practice the platform you use to learn the features - for regualr trading, especially scalping, its utterly useless

    (scalping is based on executions)

    Good luck on finding a firm, there are several firms with dignity left, you may have to move out from TX for that, I think.

    Otherwise, I wish you, and everyone else, good luck and a great New Year.


    P.S.

    While connections help, blunt research helps also (in finding a firm). All you have to show that you are extremely motivated and etc. Never mention that you are willing to put up money in - that will draw vultures.

    Take care.
     
  14. Gentlemen,

    Thanks to all that responded to my questions. I appreciate and value your advice and information. The hard part is figuring out which path I should take. With all these Any additional information is helpful. I'm looking forward to that journal!!! Now all I need to do is become successful, <grin>...

    Happy Holidays,

    JFN
     
  15. JN2112,

    Well, congratulations on finding a direction. It is good to have a vision and work towards it. Some might even call this a passion.

    Through your quest you might discover yourself and the style that you like....Lets call this your "Fit". Have you ever had a good pair of shoes or meet that really nice girl? You need to discover what works for you. It is not necessarily what makes the most money, but the "Fit" that counts.

    You are choosing scalping...you want to get in and out quick and pull an income. I understand your thinking and many, many would like to master this. You might be surprised to discover that scalping is hard work. You might even consider starting out for only 1-2 hrs a day and work your way up. It takes patience while you are waiting for your set-ups and you will discover if you like it.

    You know how when you get a new car or start a new job how interesting it is? Well, after you get "broken in" scalping is actually boring. You are a button pusher and get real good at it. If you have gambling tendencies and find an adrenalin rush the part you like.....then this is not for you. In the beginning you may feel this until you get "broken in" but these things will pass if you are to be a survivor.

    As you grow, come back in and share with us your progress. Do not embarrass yourself by stating things as absolutes.....you will come back and re-read your posts and ask, "why did I say that" Never say never.

    Your abilities you have now should include being observant and able to watch several things at the same time. Your ability to pull this all together and "get the timing right" is your key to success in scalping.

    You are choosing a part of trading that is very challenging and with 15k you will need to scalp Futures, specifically the E-minis. You must first learn how to trade stocks before trading these leveraged instruments. Your starting capital will not allow you to scalp stocks as you are what they call a "pattern day trader". You need 25k plus a buffer to trade and weather the storms with.

    You have requested feedback...so I hope this post is not too long. I suggest you start with a program called TC2000....google it to find their site. This is a great training program with a low cost to get you started in trading stocks with hold periods of 2-5 days. I know you want to scalp...and this holding period is not scalping. But you need to master this first and this is within your means right now.

    So get started what are you waiting for? You will discover what your passion is...you may blow up and need to start over several times in your life. If you don't believe just ask some of the EliteTraders in here to post "their story".

    Michael B.