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Quote from GreenDog:

No offense to "Brandon", but...

Oh no, of course not.

but don't insult the intelligence of the ET population w/ your altruistic BS.

And you're here to protect the ET population from him, how altruistic of you.

Respectfully,

Respectfully? I must've missed that part.
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Quote from lindq:



Brandon, I think this is good, solid information for new traders. However, I feel that you have left out an important subject that is always at the top of the list for new traders, and that is time-frame.

From my own experience in the past, and from talking with others who have survived and prospered, my personal opinion is that it is a huge mistake for new traders to put so much emphasis on "day trading", where the odds are so strongly against success. I was interested to note this weekend in reading Elder's "Come into my trading room" that he also shares the opinion. Even studies done of trading rooms at the end of the last bull run showed clearly that those who took a longer term approach...position or swing trader...fared far better than the average daytrader or scalper. While I have no doubt that there are daytraders who are making good returns, it makes little sense to me for a new trader to jump into an environment where the learning and frustration curve is so much harder to overcome.

So again, I think this is a subject that needs to be addressed for any new traders.
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Im getting there, but I can only cover so much at a time :D

brandon
 
Quote from dbphoenix:

If greendog believes that what BF says has no value, perhaps he'd be willing to impart his own wisdom.
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Probably not, its easier to bitch and moan.
 
Quote from lindq:



.

From my own experience in the past, and from talking with others who have survived and prospered, my personal opinion is that it is a huge mistake for new traders to put so much emphasis on "day trading", where the odds are so strongly against success.

I disagree . With solid method, daytrading can be as profitable as any other trading.
Reason why they starting to daytrade is because lower margin requirements, less stress and shorter learning curve.
Reason they fail is that they do not have a solid daytrading method, not because of the timeframe.
Walter
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DHOHHI >
If someone is just starting out how are they going to make any money on 2%
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If someone is undercapitalized then they probably shouldn't be trading actively.<
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What you are saying is that before we go out and risk $2,000.00 to learn the game. We should go out and get a job and save up one hundred thousand dollars?
DHOHHI >Rather, they should work at saving up enough capital to fund an account so that it's more than "nothing."
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Agreed no dispute, its just that 2% is not a reasonable amount. It sounds like something you tell kids in kindergarten. Is there anyone reading this forum that has ever speculated with over 2% of there trading capital?
dbphoenix >If you have nothing in your account, you're not going to be trading anyway. Or have brokers started taking credit cards?
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Yours doesn’t!
DHOHHI >LOL. Might be like some mortgage companies .. who finance MORE than 100%?
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Sure you can use the cash you get back on a no money down real estate deal to trade with. I am just saying that it is unrealistic to expect a new trader to put up $100,000.00 to risk $2,000.00

Even Trarp is flexible on this point.
 
Quote from -ooO-(GoldTrade:

I am just saying that it is unrealistic to expect a new trader to put up $100,000.00 to risk $2,000.00

Even Trarp is flexible on this point.
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I think the point about the 2% is quite simply this.

Risk no more than 2% of the capital you have on a trade. That way if the trade goes wrong (even with a good strategy it happens) you will not be out of the game...

So, if you have say $5000 you should not risk any more than $100 per trade, and should size your orders accordingly.

There are indeed strategies that fit that kind of calculation. This has nothing to do with having $100,000 to trade with in the first place, and you would be crazy to risk $2000 if you only have $5000 to work with. If you had $100,000 to trade with then you size accordinly to risk only $2000 according to this rule.

Natalie
 
Quote from -ooO-(GoldTrade:

I am just saying that it is unrealistic to expect a new trader to put up $100,000.00 to risk $2,000.00
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Who said that he should do so?
 
All freely traded markets are trending at all times. There are four major trend timelines in effect at all times. The first is the the long term time frame. It lasts from months to years and is the domain of the investor. The second is the intermediate term time frame, this exists in a period of weeks to months. The third time frame, the one I am primarily concerned with, is the short term time frame, the domain of swingtraders. The fourth, a very minor time frame is micro. This exists in a period of seconds to a day or two. Daytraders operate in this time frame. Each of these can be moving in different directions at any time.

It is important you know which way the trend you are dealing with, and the trend one order higher, is going. There are uptrends, downtrends and sideways trends. We concern ourselves with uptrends and downtrends for the most part as these present the easiest opportunity for us to make money.

Brandon
 
I was just checking my email and had one in the box from the Online Trading Expo which had a link to an article by my friend Chris Schumacher who is with Realitytrader. I think that the article is very good and definatly worth your time to read. http://inet.intershow.com/ote/main.asp?site=chot03&cid=lesson0519&scode=N/A

As we move on in this thread I will touch many things. I also hope that the experianced traders out there will offer some advice here too, I certainly do not have a monopoly on truth or what works. RS7 (now Erorr404) Oldtrader, Threei, RTChris, Chartwiz,metoxx, girlpower, Nitro are just a few of the people I can think of off the top of my head.

Brandon
 
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