2 years experience, want to get serious...

L

l2tradr

Hello all,

I've registered on this board a while back and have done at least 2 hours of reading every day. With some exceptions, I've found this board to be THE most informative, no-nonsense board around. So thank you in advance :)

A little background: I've been trading stocks only for the past 2 years, and have been mildly profitable thus far. 12% return in my first year, and 38% in the last. I've built myself back up after a 60% drawdown in the last year also (I should have never been in that position to begin with)

What would you guys recommend for someone in my position as far as where to start building a proper strategy (precise, rather than emotion-based), what products to trade, etc.? I am able to commit 6 hours a day or so to trading, as I work evenings and am working on finishing my finance degree. I can dedicate approx. $40,000 to the markets right now, would like to not experience more than a 25% max drawdown.

Thank you in advance, and I hope some of you can point me in the right direction.

L2
 
keep building up your capital.. and dont blow it with the possibility of 60% drawdowns. There is no reason to enter trades that have a possibility of losing. And the only reason people do, is because they want to trade all the time.
 
Do you suggest I stick with stocks or move to futures? I like the idea of traking 5-10 indexes as opposed to countless stocks, but I also realize that I will be up against much more experienced traders waiting to eat me alive...
 
Quote from l2tradr:

Do you suggest I stick with stocks or move to futures? I like the idea of traking 5-10 indexes as opposed to countless stocks, but I also realize that I will be up against much more experienced traders waiting to eat me alive...
More...

Except for leverage, futures are mostly the same as stocks or ETFs.

There is nobody lurking to "eat you alive". The only enemy is within.
 
As far as a strategy is concerned, could someone point me in the right direction? So far I've been basically a momentum trader, with most of my holdings being held between 1 day and 2 weeks. I'd be interested in a more rigid set of rules that would make my trading less instinctive and more structured. I find that my emotions get the best of me at times.
 
All of these questions your asking are really dependent on the individual. One strategy might work great for me but not great for you, Bill might love trading futures but you might hate it.
 
Quote from l2tradr:

"... I'd be interested in a more rigid set of rules that would make my trading less instinctive and more structured. I find that my emotions get the best of me at times.
More...

Your challenges are the same we all face. There are books and seminiars which purport to help with these.

You're unlikely to find the kind of guidance you really want and will have to figure it out on your own.
 
Quote from l2tradr:

Hello all,

I've registered on this board a while back and have done at least 2 hours of reading every day. With some exceptions, I've found this board to be THE most informative, no-nonsense board around. So thank you in advance :)

A little background: I've been trading stocks only for the past 2 years, and have been mildly profitable thus far. 12% return in my first year, and 38% in the last. I've built myself back up after a 60% drawdown in the last year also (I should have never been in that position to begin with)

What would you guys recommend for someone in my position as far as where to start building a proper strategy (precise, rather than emotion-based), what products to trade, etc.? I am able to commit 6 hours a day or so to trading, as I work evenings and am working on finishing my finance degree. I can dedicate approx. $40,000 to the markets right now, would like to not experience more than a 25% max drawdown.

Thank you in advance, and I hope some of you can point me in the right direction.

L2
More...

Consider making the "leap" to professional trading, getting yourself licensed, join a Firm that will allow use of $1million or more of their capital (with $25K of your risk money)...and then you can take part in strategies that actually work (pairs, opening only's, mergers, market making, etc.)...rather than the "pick a stock, or pick a market direction" kind of thing that most retail traders get themselves stuck in.

www.stocktrading.com/training.html

Don
 
Thank you Don. Unfortunately, I'm based in Toronto, so no Vegas for me :) . I have considered joining Swifttrade on a part-time basis if they allow me (I don't care about the fact that I won't make money at the moment- I read all the bad reviews- I just want to learn more). I am in the process of getting licensed, I have completed my Canadian Securities Course already and working on finishing my finance degree. Other prop firms that I can think of in Toronto is Questrade, but I like the fact that I won't have to risk my own capital with Swift (although I'm unsure of how much I will learn if they primarily scalp).
 
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