Advice to New Traders

The posters who refer to the WSJ as giving them a bias are mostly correct.

I only use the WSJ to:

1. Confirm or negate the daily pivot range for the DOW/S&P - taking into account what happened yesterday and balancing the likelihood of a fade or continuation (Basically, "What's the general tone?")

2. If there is news about the sector(s) containing the stocks I trade, I MIGHT attach additional weight to that depending upon what the actual story is.

Imagine not know the news on the day the Chinese revalued the yuan and trying to fade housing on the long side (I bet that's what some of you did).

If anything, WSJ helps me to protect myself from taking obviously wrong positions - but rarely will it actually get me INTO a position.
 
I tend to agree with ks96 on this. WSJ's audience is simpletons and investors. I find it hard to believe that many intraday traders would be more succesful if they read WSJ. Not saying I don't enjoy reading WSJ. Their weekly Baron's publication is pretty good.

Quote from Ebo:

I responded to a specific question about subscribing to The WSJ in Canada, NOT the original poster.

Maybe if you paid attention to what you read, you could turn a profit. Now I totally understand why you frown upon reading the WSJ.

Good Luck

PS:

Now I have seen it all here on ELITE!
The WSJ is bad for daytrading.
That is a classic.

I will PAY for his $100 WSJ if you never post again.
More...
 
I have been in this business for over 20 years and habitually read the WSJ front page and 1 or 2 stories while taking my post coffee pre-opening morning dump.

I never said read it from cover to cover, it is just one of many useful tools.


Good Trading to you!
 
Quote from AkbarTrader:

What do you advise first to do for new day traders?

Thank you for your reply.
More...

Welcome to ET...

1. Always use stops (not mental stops)
2. Risk no more than 1-3% on a single trade
3. Realize and accept the fact that you will lose money (I am wrong), and that your winners (I am right) don't make you invincible.
4. Resist the urge to use more margin after a big win. (One of my big weaknesses... See rule #3)
5. The market doesn't care if you make or lose money.
6. You don't have to know what the market is going to do next in order to make money.
7. You can't predict the market, only increase the probability of your success with a defined edge.
8. Be consistent and predictable. Have a plan, stick to it, and never ever deviate from it.
 
Try to honestly answer this question:

Do I have what it takes to become a succesful trader.

1) are u using scared capital to start this venture.

2) do you have the emotional profile to be a succesful trader. are u able to mantain under major pressure and adrenalin rushes. Or are you an adrenalin junky who can't lay off the mouse when you should.

3) the chances are you won't make it. Before you start, no where your cut off point is. The point where you throw in the towel.

4) are you able to realize quickly when something is not working.

5) start low and slow. If you can't make money with one contract you certainly can't do it with 20
 
Hi,

Thankx, I really didn't expect such many replies to my thread.

My trading is going, I am trading since February of this year, and totally my gross is $1200 and volume is 167k. Could you give your poit of view about my trading, is it normal or bad?

Thank you

A.T.
 
Quote from AkbarTrader:

What do you advise first to do for new day traders?

Thank you for your reply.
More...

To expect that first 10 years you'll spend learning. How much money this learning process will take depends on you personal circumstances and abilities.
 
"Keep dreaming but dont give up your day job."

This is hard advice for people in the US timezone.

Therefore develop a mechanical day trading system so you can continue to work and trade. Mechanical systems have deep
drawdowns but this doesnt matter as you have an alternative
secure income.
 
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