Where to start?

Discussion in 'Professional Trading' started by KHL, May 14, 2004.

  1. KHL

    KHL

    I am looking for a mentor. I live in the Metroplex and am new to day trading. I would like to make it a full time job. I am searching for someone who has been doing this for a while (in the good, bad, and ugly times) and who can teach, share strategies / helpful tips, insights, the do’s and dont’s, etc. with me. I think emulating someone who has been successful is the way to go.
    As I mentioned I am just starting and as such, looking for platform to trade with. I am currently with Scottrade (you can’t beat there commission package), but am looking at more sophisticated programs among them TradeStaion, eSignal, Scottrade own Elite and also RushTrade (simply because they’re a local company and their commission package is great, too).
    I have been learning as much as I can. I appreciate any information on books / magazine / other publications to read / subscribe to. I find there’s a plethora of information out there, “the secrets, WS does not want you to know” kind of junk for $$$$$, and probably 95% of it is just that. Junk.
    Please feel free to leave a specific suggestion (am not interested in” check this website” kind of information), what to do and not to do, how to develop into successful trader, books to read, habits to learn, etc.
    You replies are greatly appreciated.
     
  2. Whats in it for me?
    :p
     
  3. KHL

    KHL

    Since there's a lot of information out there, most of it probably junk, it depends what you got to offer. As I mention in the thread, I am looking for someone who has been doing this for a while (in the good, bad, and ugly times) and who can teach, share strategies / helpful tips, insights, the do’s and dont’s, etc. with me. I think emulating someone who has been successful is the way to go.

    Do you make money consistently? Are you great at what you do? Have you been doing this for sometime (years)? Are you local to Metroplex?

    If you are let's talk. Otherwise, thanks for your reply.

    KHL
     
  4. Yes I've been trading since 99. Been a fulltime trader for the last 3 years. I'm consistently a winning trader. I'm a day trader who plays the opening gaps and ETF's. To make a long story short I started out with a few grand in early 99. Turned into $75K by the end of that year. Lost most of it when the bubble burst. I then laid low and started educating myself. I turn to Michael Parness in 2001. I was one of his students for about 8 months. Since then I have been out on my own.

    My account is over the 1 million dollar mark. Daytrading changed my families life. We finally purchased the home of our dreams last year. You can read my posts in the Dream Homes Forum. It took me a while to develop a system that works for me and it fits my personality. Does it work for everyone no. I've been up in the last few weeks. Today I had a few losses. It was my fault because I didn't follow my personal guidelines. Anyone here that says there 100% all the time is lying out there ass. No one is ever that good. Buffet isn't even that good.

    Like I said earlier what is in it for me? I've got quite a few individuals that PM me constantly looking for help. I tried a AIM forum last year. It went well but more and more people wanted more and personal time and I was doing it for free. I finally stopped doing it because it was more of a head ache than anything else. People want something for nothing and complain when something doesn't go there way.

    My best advice to you is to research the net. Start here www.trendfund.com Buy the course and join the chatroom. Learn as much as you can and paper trade till your at least 80% on your winning trades.

    Good luck too you in what ever you do.
     
  5. KHL

    KHL

    Thanks for the reply and suggestions. Some of these chat boards are useful, majority are waste of time. I believe successful traders trade, they do not spent time in chat rooms.
    When you asked "What's in it for me?" I did not know what to make of it since I can't price something I do not know the value of (like you dream house; how many SF, rooms, etc.; if I offered you 100K you would laugh; but for someone living in doublewide 100K house could be considered dream home).
    Reading and studying is fine. Paper trading is OK. But speaking from a personal experience, there's nothing like watching someone who is successful, adopting habits that fit me and developing my own.
    Again, if you live in the Metroplex let me know. I would prefer you email me rather then using this public forum.
    Hope to hear from you.
    KHL
     
  6. No I don't live in the Metroplex area. I'm about 45 minutes south of Philadelphia PA.
     
  7. Hi KHL,

    Your correct...when it comes to mentoring...

    Only go with someone that will mentor you in person while trading from their own account in front of your own two eyes.

    However, I feel that mentoring should only be done after you've exhausted the self-taught route.

    Unfortunately, for most, when self-taught is exhausted...

    They're also broke or undercapitalized.

    Yet, if your driven to be mentored...

    I highly recommend the following prior to exchange of money:

    1. Mentor shows recent verifiable documentation of their trading.

    It works both ways...you should also show verification documentation of your own trading.

    This will show the mentor that you actually need help, properly capitalized and allows the mentor a peek into possible trading problems you may already have transcribed into your methodology...

    2. You should be allowed to visit the mentor and watch him/her trade eventhough the mentor is not required to educate you for that particular day(s).

    This helps avoid the issue of false verifiable documentation because such is easy to make.

    If your satisfied so far...the mentor should then go visit you in your trading environment to watch you trade.

    You should compensate the mentor for any traveling expenses because by this time you already know that the mentor is the real deal.

    Its at this time the mentor can determine if your trading environment has an impact on your trading (don't underestimate this)...

    It's possible you could be using the wrong trading platform, charting program et cetera...

    For the style of trading your doing or going to be doing.

    Heck...your computer workstation may be inadequate.

    The mentor can make recommendations at this time to get you on the same or similar level he/she is on.

    Mentoring should not begin until you've fulfilled those recommendations.

    3. You should be very specific about your goals and the mentor should be very specific about his/her goals with you because they now have valuable information about you...

    Your trading environment and your trading habits.

    4. At this time...you can move into the discussion about fees.

    However, lets say a date for 2 months of mentoring (in person) is set in the future.

    Between now and then...you could require the mentor to post his/her trades in realtime in a private chat room so that you can be ensure his/her edge hasn't been lost or is in some sort'uv normal drawdown period.

    Remember...past performance is not an indication of future performance...

    Reason why you want to stay in touch sort'uv speak prior to the actual mentoring.

    Mentor should charge a small fee for such...

    After all...he does have a verifiable trading record.

    5. At the minimum...you should compensate the mentor for profits he/she will be missing while mentoring you.

    Remember...by this time you have access to the mentor's verifiable trading record.

    Example...if your mentor is making on average about 2K per week and you want to be mentor for 4 weeks...

    Guess what...be prepared to cough up 8k.

    Now...that may sound obscene but look at it this way.

    Why would a trader with a verifiable trading record risk mentoring you for a lessor amount knowing they are losing money (not having the opportunity to fully devote to their own trading).

    Another option for determining the value for the mentoring is while the mentor is trading from his/her account while trying to educate you at the same time...

    During such...if he/she only makes 1k for that week when there's proof they average about 2k per week...

    You should at least compensate the mentor for the missing profits.

    Now...the above is only the minimum.

    6. Mentoring should last long enough so that the mentor can coach you through your own trades.

    If you lose money during this period...its either deducted from the cost of the mentoring or a partial refund is entitled to you.

    Maybe the above is the same.

    7. There should always be educational material...written in stone...that explains everything or almost everything the mentor has shown to you.

    8. There should be follow-ups...online or phone conferencing is ok at this point.

    9. You should agree to make yourself available for reference for the mentor in case future clients ask for such...

    Along with your trading records of a minimum of 3 months after the mentoring has concluded.

    This allows the mentor to show future clients if there's real value to his/her service.

    The point for all the above is just because someone has a verifiable successful trading record...

    Doesn't imply they are suitable for teaching.

    Using an academic analogy...I've met brilliant college professors that didn't know how to teach...

    I guess that's what those teaching assistants were for :cool:

    The above also (although is a stringent process) helps ensure a fair value has been given for the service.

    Something else...I've read several posts here at ET about finding someone to mentor you for free.

    Good luck because there's no such thing as a free lunch in this business.

    Anybody that mentors you for free will be coughing up their time and energy...such is valuable to any successful trader.

    More importantly...it has a value.

    Last of all, if you or your mentor ignore any of the above...

    The odds are very high that either the student will be unsatisfied with the mentor or the mentor will be unsatisfied with the student.

    It works both ways.

    Good luck in trying to find someone like that.

    P.S. The above is what I had with my mentor over a decade ago.

    However, I was extremely lucky. He did it for free and I was happy to compensate him (over 3K) with the profits he helped me to make during the mentoring.

    NihabaAshi
     
  8. cartm

    cartm

    NihabaAshi, good post as always. You should be a mentor, I think you would be a good one.
     
  9. where tradewize? I am also about 45 mins southeast of Philly. In Franklinville.
     
  10. KHL

    KHL

    Hi NihabaAshi,

    Thank you for the insight. Very thorough and informative at the same time.

    KHL
     
    #10     May 18, 2004