Recommeded study plan before total beginner opens 1st account

Just recently began reading about short term investing & swing trading. Seems to be an overwhelming amount of info & opinions. Anyone willing to narrow the field for me as to what I should be reading/watching, etc? Have much to learn before opening 1st account & getting involved with REAL money! I definitely fit into the small-time investor category and will be able to dedicate about an hour a day once I get started. Thanks for any input!

 

I'm not sure which books constitute the best training these days: A classic in technical analysis always was "Technical Analysis of Stock Trends" by edwards and magee. Its still in my library.

 

With this kind of market interest I strongly suggest you look into a position trading style. (Trades taken off weekly charts with multi week holding expectations.) You can enter and manage these trades with stop and limit orders, so they don’t need to be babysat . If you have the patience, this style can offer some of the nicest risk/reward trades there are.

To learn, I suggest the T/A bible “analysis of stock trends” by edwards and magee and then back it up with Alan Farley’s “the master swing trader”. That should give you al the chart patterns you could need

Then the single best book ever written about trading...”reminiscences of a stock operator” This guy was a great position trader, and this book has many MANY trading lessons buried within.

Two other must haves IMO are “the way of the warrior trader” by Dr. Mcall, and “Trading in the zone” By Mark Douglas. These are both books on the mental game.

Spend a lot of time looking over charts...then look at a few more On a weekly chart the trends are obvious. Look at how these stocks change trend, and what patterns exist as the bulls give way to the bears, and vise versa.

Once you have a basic feel from your paper trading, open an account with a per share fee broker, and start trading with 50 shares. Trade so small that it seems a total waste of your time. This will keep your initial losses small and give you the sustainability needed to make it to profitability. Once you feel comfortable with your skills, you can step up the size, and start making some real money!

Good Luck, and take it slow.... Many would be great traders wash out because they started pushing too early in the game. Take the time to learn, and the market will reward your patience!!!

Good luck and good trading,

-Bo Yoder

 

You picked a good place to start. I started about 15 years ago
and the folks here on Elite Trader know what their talking about.

Just start a thread and you'll get your answers.

My advice...paper trade, paper trade and paper trade. Some of
the guys will tell you it's not the same, because you're not under pressure. Well, their right. But, I would also add, if
can't make money paper trading, why should you think
you can make money trading for real?

Best of luck...

 

Does anyone have a URL to order reminiscenses of a stock operator??

 

You might try this:

http://www.traderspress.com/

 

Yes, I found it there:

http://www.traderspress.org/detail.asp?product_id=9-S

 

I'm going to commit blasphemy here but before trading any stocks I would read The Essays of Warren Buffett. Forget about how he picks stocks. The key to halfway decent investing is to have the right psychology to handle bad stretches. Buffett is really the master of this. Also, its important to note that his wife left him but first introduced him to a sexy younger woman who promptly moved in. She did this so "Warren wouldn't get lonely." I think we can safely say this guy is THE MASTER.

 

Yeah, maybe, but I have biz school friend who hate TA. They love Buffet, and in Biz School all they learn is fundamental shit. Ask my buddy how is formerly sizable portfolio is doing!

He doesnt believe TA is real, although I tell him I use it every day and make $ from it. Buffets book has minimal application to a day trader, I have read it, and he is so old fashioned it makes me sick. Yeah, yeah he has more cash than I ever will (well see!!) but still, his principles do work. But thats what his psychology about down periods is based on....the strong fundamentals ironing everything outin the long run. I can see why his type may frown upon technicals if thats what is keeping a stock down (under resistance) for a period of time regardless of fundamentals, etc.

 

I would add Dr. Alexander Elder's "Trading For A Living" as one for your library. It should help to put you in the correct mindset as you embark on this adventure.