Strategies for a beginner

Discussion in 'Strategy Development' started by Lilypond10, Jul 18, 2008.

  1. 7/18/2008 6:25:48 PM

    Hi everyone

    I need advice on a good start up strategy to learn with.

    Here’s my current situation….I’m a high school science teacher with the opportunity to retire either this Dec. or at the end of the year. I traded long 8 years ago have but done very little since except some portfolio management so I’m basically starting from scratch.

    I’m not able to trade during the day unless I stay home.

    My husband day trades (also is an engineer in a lucky situation that allows it). He’s good enough at it that he expects to make it his job in the near future. So he’s a resource for me but not as a teacher. Also his strategies would not be my choice.

    I want to pose these questions as a newbie:

    • What strategies would you recommend for someone to start experimenting with?
    • Are there strategies that start with the previous day charts and close that I could use the next day?
    • I’m currently reading forums on stockfetcher, here and Brett Steenberger’s sites. What other sites would you recommend?
    • I’m also going through a few books on trading psychology (Disciplined Trader, Trading Zone, Come into my Trading Room and Trading for a Living). Other books please?
    • My husband has set me onto therumpledone to follow. Any others who are good for beginners?

    I've picked up filters for fade the move and am looking at these currently. I haven't tried to trade with them except to feed information to my husband on one. He made a successful trade..


    Thanks for any help,
    Lily
     
  2. The best teacher and resource I can recommend for new traders as well as experienced is to subscribe for free to
    http://youtube.com/user/SnP500Trader

    His nightly lessons on trading are always educational and excellent.

    Best to you!

    Steve
     
  3. I'm a beginner myself but I wanted to say I read a bunch of books lately and I find that Oliver Velez's booklet and DVD on swing trading seems like an easier method to follow. However, I haven't really tried it yet so I can't comment on its effectiveness.

    I'd also like to add that I noticed that many indicators mentioned in a lot of trading books are explained in The Complete Guide to Investing in Short Term Trading by Alan Northcott.

    (That book title is a little strange though. I mean how can you "invest" in short term. Anyway...)

    Thanks to the other poster for the youtube link.
     
  4. NoDoji

    NoDoji

    I participated in Oliver Velez's (Velez Capital Management) free webinar last month about himself, his prop trading program and, best of all, a retracement trading strategy that I paper traded for several weeks before going live this week and making a 10% return on my capital. So I would have to guess his books are good, too, because his webinar was awesome.

    The best book I've read is Market Maker's Edge by Josh Lukeman. It is well-written, easy to understand, to the point, incredibly informative, and his 1st chapter instructions for risk management took all the fear out of day trading for me.
     
  5. NoDoji

    NoDoji

    When I put on a trade I feel very invested even if it's for 2 minutes :p
     
  6. NoDoji

    NoDoji

    A strategy that I find very helpful having only 5 months of trading under my belt is to select 5-10 stocks at a time and get to know them well. By becoming familiar with them, you can tell when they're "behaving" and predictable, and when they've broken major trends. I keep 3- or 5-minute charts up on all of them and as soon as I see a specific signal I'm looking for, I place my order without hesitation, and then set a stop immediately based on either the previous bar(s) low, the day's low, or just below the 8-period moving average (do the opposite for shorts), depending on the max loss I'm willing incur.
     
  7. BSAM

    BSAM

    Lily.....

    You know what the bid and ask are?.....Good.

    Now.....Finish reading Trading In The Zone, then don't read anymore books. Don't try to follow some noted "guru".

    Look at charts for the next 2 to 6 years. Can't wait? Then forget trading and donate to charity. (I suggest an animal rights organization.)

    There. You owe me $3,000.

    Good luck.
     
  8. Look at charts for the next 2 to 6 years. Can't wait? Then forget trading and donate to charity. (I suggest an animal rights organization.)

    There. You owe me $3,000.



    -------> Yeah.....I hear ya...we've been through trial by fire already with hubby. His was an expensive education. Your 3000 is a deal.

    But you already know what's gonna happen...none of us wait it out and we hit the fire flying.
    thanks though for the warning.....it always worth the try even if we won't listen.

    Lily
     
  9. Retief

    Retief

  10. BS.

    Your post shows you don't understand Trading in the Zone.
     
    #10     Jul 19, 2008