Next after Steve46 New Trader Thread

Discussion in 'Trading' started by Robert Fleming, Apr 29, 2004.

  1. Fellow Traders
    Given the considerable resources on this site ...
    And having read Steve46s recommendations to the new trader, I would like some advice as to where to go next - lest I start reading everything!!

    There appears to be considerable effort spent on very little - and I was hoping for some guidance to some of the better resources, be they journals/specific authors, etc.

    In the meantime, I am blazing through books at a huge rate, with notepad and pen - paper trading on eSignal and trying to sponge it all up.

    Appreciate it
  2. Check out dbphoenix thread on volume.
    Learn about support/resistance and important chart patterns like double tops.
    Look at charts on several time frames.
    Know that trading is like playing poker - but much more complex because the probabilities are never known.
    Read some of the threads by samson77 - he spent 00000's on useless courses and gurus.
    Consider trialing a few chatrooms , but don't get hooked on one style, simply learn. Be patient to let understanding grow- this is hard because you will want to believe you know more than you do, or that this or that writer/teacher knows more than he does.
  3. Hello Folks:
    Nice to see that my old thead still finds some readers. While I agree that a new trader could learn a lot from DB Phoenix' Thread "Price & Volume", I think the reader can get a lot more out of that thread by first reading "Charting the Stock Market: The Wyckoff Method" written by Jack Hutson. Reviewing the thread and reading Hutson's book at the same time will work also.

    P.S. Just for the record, I want to say that I noticed a real difference when I got interested in "characterizing the markets". This is a way of looking at price action that I first read about in articles and books written by John Sweeney and later by Stendahl & Zemansky. You could do a lot worse than learn how to determine a market's "Maximum Adverse Excursion" and "Maximum Favorable Excursion".
  4. become a mechanical system trader. the only way to go.
  5. Thanks for the followup, all posters ...
    My focal point (to start) is on daytrading, particularly the first session - to understand the dynamics, etc.

    Is the Wyckoff book focused on this approach - or is it generic in application?
    Steve46 - that was a great thread; really appreciate your time and effort and those who responded ..... it helps to establish a good starting point, given the mountain of literature available.

    Reading the book "Trading on Momentum" by Wolff and Schumacher - seems good - any feedback, thoughts on this??

    Can you narrow down trial forums to some best recommendations......
    Also, what about the website??? Good investment?
    Thanks all
  6. I used to disagree with that theory, but at this point I think either way a trader is going to have to pay tuition. ultimately a good trader has to become a good researcher (if not a decent programmer). Depending on the background of the individual, it may in fact be a good way to go (mechanical trading). One problem that I notice frequently is a lack of background in statistics. Traders without a good background usually don't know how to interpret a backtest result, don't understand about correlation and dependency and as a result can get fooled into trading a system that doesn't have a stable edge. That mistake usually costs the trader a good portion of his account. Good luck, Steve46
  7. Rob: I was one of the first subscribers to TradingMarkets way back when it was I think it can be a good general resource, but no better in quality than ET. In my opinion they (TradingMarkets) have become marketers of systems, books, and resources that are of minimal value. My advice is to spend money on good books, and be patient. One of the best risk vs reward setups is to simply use the "search" function at the top of the ET home page. In my opinion you can go a long way by making a list of subjects of interest, reading the posts, and following up on your own. Just one opinion. Good luck, Steve46

    P.S. Although I don't mention it often enough. NihabaShi has helped me quite a bit with his approach. Read his threads. They may be of help to you. As regards daytrading, if you are trading equities you need to find an approach that will make $ on a consistent basis. Although I am not a prop trader, I like the Opening Order method that Don Bright uses. Also I favor strategies that take advantage of "human nature". Just to point you in a direction, look into books on "event trading" by Ben Warwick (there is a new one out but I don't remember the authors name).
  8. i highly reccomend the following books to you:

    trading for a living ---- alex elder

    winner take all---- gallacher

    market wizards 1 and 2 --- schwager

    education of a speculator---- niederhoffer

    the psych of trading---- steenbarger

    trade like a hedge fund--- altucher

    enjoy !


  9. Thanks Steve, Marketsurfer,

    Incidentally, I found out that MBTrading offer a free subcription to Tradingmarkets when you sign up with them ....
    I have just sent off my paperwork, so I am waiting to get that!

    dbphoenix in his Price & Volume discussion references a "Techniques of Tape Reading" book by Vadym Graifer and Schumacher .... guess they run with forum etc ....
    Any ideas on the quality of that book??
    Graifer also has a new book in pre-release about Scalping as a defensive strategy....

    Would appreciate anyones input on these topics -
    Do I have a ton of reading now!!!!!
  10. I thought vadyms book was excellent. I am trialing his room at the moment. Have taken one call but it was profitable. The thing I don't like about the room is that it is written only, I prefer listening as I can be looking at charts while i listen and also the guru can give a lot more info. Also some rooms they show a screen shot of their trading desk so you can see exactly what the teacher is seeing .
    Another good room is knovamind
    #10     Apr 29, 2004