Trading: a poison

Discussion in 'Professional Trading' started by cashmoney69, May 7, 2007.

  1. Sad to see you go. I guess you're 20 now so you can get a job and think about what went right and what went wrong. You might try again in a few years ... but keep the job until you prove yourself next time.

    You did generate one thread that anyone looking at trading should read ... there are a great many lessons to be had:

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=76477
     
    #11     May 7, 2007
  2. I'm not leaving, I just cant trade as a means to live off of. The apartment I'm looking at cost 650.00 alone, so I need a 2nd income. You guys dont know how lucky you are to trade full time and not take crap. This is gonna suck. Maybe I can be a waiter or something. :mad:

    cm
     
    #12     May 7, 2007
  3. If you're trading profitably, have you considered going prop?
     
    #13     May 7, 2007
  4. Prop is good if you are a beginner, they don't teach you shit
     
    #14     May 7, 2007
  5. Just call the Bright Bros!:D
     
    #15     May 7, 2007
  6. MingWu

    MingWu

    Hey cashmoney, can you advise what went wrong, for us new traders? why you fail?
     
    #16     May 7, 2007
  7. drive a taxi = flexible hours,decent pay relatively speaking, tax free :D :D
     
    #17     May 7, 2007
  8. Again, its not about pass or fail. But to answer the question, in short, I was under-capitalized to begin with.

    Had I started out with 25-50k, I could trade larger size and possibly make 3x or more a month.

    1. I went to hell and back trying to find the indicators that made sense to me.

    I thought the more indicators i added to my charts, the better I could understand and predict price, when in fact it just became harder and more frustrating. I still use some indicators.

    2. Find one or two set ups and stick to it.

    I used to try and time the market by attempting to catch a top or bottom. Now I look for the breakouts these tops/bottoms produce

    3. Understand multiple time frames. This might take you a while to grasp, but once you understand how to use multiple charts in your trades, you'll improve greatly (over time of course). PM me if you want on this issue.

    4. Follow your gut feelings: I cant tell you how many times I said to myself, "This stocks gonna move", then I post on ET what others think, and later change my mind... mistake.

    5. Be patient. Take a look at VLO. I was in at 66, but I sold because I got bored with it. Now I have positions in CFC and CAT from early to mid april. The trend is your friend, yet so many forget this simple rule.


    I'll be upfront with you. I didnt understand at first, but now I see why a lot of traders are "price action only"..adding even one indicator just adds one more thing you have to deal with...they can be helpful, but its a 50/50. I guess its fair to say indicators are needed on some methods more than others. For example, I trade breakouts, so to me, its important to see momentum in the market, so I use ROC (rate of change).
     
    #18     May 8, 2007
  9. cashmoney - I think it's great that you read Elder's book(s) before you started trading. If I read his books before I started, I wouldn't have had such a rocky first few years. I trade for a living now, but it takes significant capital. I would up your estimate by 5x-10x, 25-50k starting capital just won't cut it, unless you have an inordinately low cost of living. Until then, work and trade part-time (swing trading of course). Definitely look into getting a degree (or two), it can't hurt.
     
    #19     May 8, 2007
  10. The problem is, that if I'm going to trade full time as a retail trader (my goal), what good does a degree do me?.. I asked ET before if a degree in Econ or finance would help me as a trader...I believe the concensus was "no". Unless I get into a top notch school, a hedge fund or really any other investment firm probably wont look at me. From what I've read on ET, if I can maintain a good track record, I wont need a degree to pull in clients for a fund, if I choose to open one.

    I agree, it cant hurt, but it is time consuming.
     
    #20     May 8, 2007