Strategies for a beginner

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

  1. BSAM

    BSAM

    Yeah, uh.....okay. Rest well.
     
    #11     Jul 19, 2008
  2. C99

    C99

    you seem sincere, a few places you might want to investigate:
    fade the open gap strategy. various flavors, same idea. Carter and hilbert or hulbert or whatever recent book has a version.
    in short, fade a gap from yest. close. if filled, set profit target and stop loss. tests well in ES. 1 trade a day, max. keeps you from overtrading, work friendly. this alone with some discipline will most likely beat your husband with almost zero effort and a warm smug feeling.

    The rumpled one is interesting, focus on high prob setup and the statistics of making $. milk the cow, profit zone same opening range idea, though not fade but go along if I recall correctly. And pont is both fade and go along can work if you get how the numbers work. check www.kreslik.com for more on them.



    also maybe check short premium wingspreads in stock options. maybe a mouthful if not famaliar, but generally a monthly trade good for maybe 5% / month if done well. limited risk, not too complicated after initial learning curve.

    big point, always ignored, start small. don't blow what you have worked so hard for.
     
    #12     Jul 19, 2008
  3. also maybe check short premium wingspreads in stock options. maybe a mouthful if not famaliar, but generally a monthly trade good for maybe 5% / month if done well. limited risk, not too complicated after initial learning curve.

    -----> Thanks for this .....my husband cut his teeth (+ wallet) on options during the dot com bust. He could lower my learning curve so I'm investigating.

    Googled your string words and got lots of sites. Any you could point me to start with? Already looking at butterflies and wingspreads on thinkorswim.com.

    and thanks for start small advice.....teachers are a cautious bunch so I've got that going for me.

    Lily
     
    #13     Jul 19, 2008
  4. How do you get the previous post to appear in bold in a reply?

    When I hit reply I can only see how to cut and paste the portion I want to use......

    thanks
    Lily
     
    #14     Jul 19, 2008
  5. NoDoji

    NoDoji

    Click "Quote".

    Definitely take your base hits and don't swing for the fences, especially if you draw down. In the beginning ALWAYS set stops upon execution; later you can use mental stops, but have them set up properly in advance so you can pull the trigger at moment's notice. Have you ever seen a sure thing turn on a dime and crash or rise several dollars a share in just minutes? You do NOT want to be making a decision about whether or not to exit a trade when that happens because in the seconds it takes to get over the shock you've just lost another $1000, and then you might hit limit instead of stop and there goes $1000 more (been there once).
     
    #15     Jul 19, 2008
  6. Roughly how much capital would you invest in your trading, and will you have another income stream?
     
    #16     Jul 19, 2008
  7. bighog

    bighog Guest

    Lilypond (thats the best you could come up with?) you stated this................ and thanks for start small advice.....teachers are a cautious bunch so I've got that going for me.

    Lily
    ....................................
    Starting small has nothing to do with learning the game, it just says use smaller bets. Correct?

    Would you be willing to assume every trade will be a loser? I ask that question because you say teachers are a cautious bunch. Ok, lets ask this question, at the beginning of the school year do you assume all the students will pass the course? Will the students show you they are going to pass or will you need to be convinced you will pass them?

    Lets say you retired now and are a trader. You throw in a trade and are filled. Will you assume the trade will be a loser? Will you tell yourself if the trade is a loser or will you let the mkt tell you it is a loser? If the trade is not yet a winner will you consider that as a loser?

    You are the NEW STUDENT in this picture. FORGET all about what teachers do in school, you have graduated to the school of HARD KNOCKS baby. How you taught other peoples brats is history.


    This is the new school Mom: <a href="http://www.sweetim.com/s.asp?im=gen&ref=11" target="_blank"><img src="http://content.sweetim.com/sim/cpie/emoticons/00020241.gif" border=0 ></a>
     
    #17     Jul 19, 2008
  8. Don't trade, and if you do, don't take advice from people here. Most are idiots.
     
    #18     Jul 19, 2008
  9. I have $21,000 and yes I have a job. If I decide to retire that's still income and I'll most likely work part time at something else.

    Lily
     
    #19     Jul 19, 2008
  10. Cool you are in a good situation to give it a serious try. I think you said you are not going to be able to do it intraday, so you would basically have to position trade because even swing trading would require some intraday actions.

    You can't really expect to generate too much income off 21k position trading. I would recommend finding a trend on a weekly chart and timing an entry into the trend on a daily chart, ie wait for a pullback on the daily.

    If it went really well you could get with Bright and take on lots of small positions to maximize returns.
     
    #20     Jul 19, 2008