Yes, start with books and other sources. Newbies should earn a little about the markets before they take the plunge. Soldiers are not sent into combat until they have gone through basic training first. If you wanted to teach an Amishman to drive, you would not yank him out of his carriage, throw him behind the wheel of a sports car, and say, "There's the expressway, hit it!"
An Attempt to Learn How to Trade Consistently and Profitably
- Thread starter attempt
- Start date
Yes, start with books and other sources. Newbies should earn a little about the markets before they take the plunge. Soldiers are not sent into combat until they have gone through basic training first. If you wanted to teach an Amishman to drive, you would not yank him out of his carriage, throw him behind the wheel of a sports car, and say, "There's the expressway, hit it!"
Not really, I don't have a black and white system. I have looked at your post, and haven't ignored you I just forgot to answer(My bad!). Thanks for the ideas, going to read a book on position sizing soon, video and post was good info.
I understand, it all depends on the context of the market, oil going higher may be one thing and another in another situation. I'll look into complexity. Seems similar to chaos theory. Seems I need to understand my correlation instruments more indepth.
Why not Master* a simple and frequently occurring setup and work outwards from there. The surprising thing is that one setup properly mastered* and exercised* may be all you need.
Here are a few quick pages on position sizing.
https://elitetrader.com/et/threads/fixed-ratio-position-sizing-money-management.303441/#post-5012086
Meanwhile, if you use your trade's Stop Gap* to calculate your position size so it is equal to 1% or 2% of your Total account value, you can't go wrong. Each individual trade's Stop Gap* is The Dollar Value of the difference between your entry and your stop.
[# 7 – Is My Position Size Calculated Properly?
If you were trading the YM and you saw a trade opportunity that entailed a 15-point stop loss, how many contracts would you trade if you could take a market risk of $500 per trade (or 2% of $25k)? The answer is 6 contracts.
Risk/stop loss = $ per tick value.
$500/15 = $33 per tick.
Each YM contract moves $5 per tick. So, to get close to $33 per tick, you need 6 contracts, as 6 x $5 per tick = $30 per tick.
https://optimusfutures.com/tradeblog/archives/futures-trading-technical-analysis-diy-audit
]
https://elitetrader.com/et/threads/...t-right-here-baby.335635/page-18#post-5309309
Double Top and Bottom
https://yippy.com/search?query=Double+Top+and+Bottom
Hell, write a research paper on Trading Double Tops and Bottoms for a class you take and kill two birds with one stone.
Your options in-depth research will require significant time outlay to bear fruit. Having mastery* of a simple and frequently occurring setup can be had in a fraction of the time.
As months roll by you can work outwards from there with your options research. I'm not options savvy but you have an advisor in those quarters already who is to be heeded over the long run.
Prioritize and allocate your time and efforts towards a schedule of milestones and completion dates on a project by project basis.
If options profit literacy project takes 5 years and mastery* of a simple and frequently occurring setup project can be had in a fraction of the time, you could prioritize and allocate your resorces accordingly and update that allocation monthly.
Last edited:
You may be right, I didn't trade today although I was watching the markets. I have never properly created a trading plan, I think I am straight up gambling. Hard to admit, but maybe I should actually start trying to create a plan. Even if they have a negative expectancy at least I can see their expectancy and probability which I never have seen. I may learn a thing or two. Instead of randomly entering/exiting, I notice my trading evolves based on how I perform which is pretty bad. I think I may just hold off trading for a bit. Take a break focus on school. I have never blown up my account, but I feel as if I have made no progress. I'm pretty sure my mind is not in a good place after losing 1k(although I did make 1k+ back), but it showed me losing control. That is what scared me.
I'll do some basic project, and build on it from there. I will also continue my options journey, also will most likely learn more about some commodities to understand their impact on markets.
Don't know what I will do with my money, but I'll probably just throw it into some tech stocks or SPY.
read And comprehend
This does not reqire live trading in the research stages to begin to Master* a simple and frequently occurring setup.
Step 1
Decide whether to Take 25 minutes to research and take notes on
Double Top and Bottom.
https://yippy.com/search?query=Double+Top+and+Bottom
Step 2 Schedule it.
Stop 3 Do it
step 4 Repeat
Last edited:
A guy could in 25 minutes survey ten or so of those websites returned by that search engine and note which ones are worth returning to for more in depth study. That is a good solid start. Screw the youtube vids for now, wayyy too slow.
During 25 minutes a guy could for each of the ten sites write down two or three tips, tricks, or traps that are mentioned, nothing in depth, skim that stuff. You'll notice that a lot of Other Simple TA subjects and expertise lend themselves to a Simple, frequently occurring setup. All this crap will benefit your Options Project too.
You will cover a lot of ground in 25 well focused minutes and you're done for the day. Sleep on it and see what tomorrow brings. Break your projects down into bite sized chunks. The lack of money does not stop a motivated focused effort. By the time you're ready to roll, and can prove it, money will be there. Winging it in the trading world can work. Just like winning a couple hundred grand in lotto can work. The odds are against it. Get a solid plan. Execute your plan.
Set aside a legal or steno pad and pencil from the corner store for your sidebook beside your keyboard to handwrite in your sidebook / journal - pencil is best. Date the pages. Keeping initial notes on your computer is too cumbersome. You'll screw up enough trade management mouseclicks without 13 windows fighting with each other on your screen. Just grab that pencil and jot down your note and move on, don't miss a beat. If you want to summarize to computer later, so much the better. Date those pages too.
Break a Leg.