Beginner Question

J

johnstac

I'm sure I will have many but this is one that really needs to be answered before I can begin doing anything.

Last time I was trading which was about a year ago, I used IB and medved quotetracker along with trade ideas. In reading this new book though called Mastering the Trade, he mentions using esignal, and ninjatrader. I just want to be sure I am understanding something. Quotetracker cost me almost nothing. Like $7 a month. Trade ideas was free because I had a Scottrade Elite account. So basically my overhead was nill. Based on some of the setups and system the author refers to, it really sounds as if it is essential to have a good quote software which I guess is where esignal comes in; and then I guess I need a program like ninjatrader to setup the trades to activate. I am using IB and the check I sent them will clear their hold in a day or so, so I would like to get whatever else I am going to need.

Could someone who has some time explain what programs are important to have and do you get what you pay for? Was using IB, Quotetracker and Trade Ideas any better or worse then using IB, esignal and ninjatrader? Some explanation would really be appreciated. Thanks.

John
 
Use whatever works. Hell, I can swing trade off of Yahoo! finance charts and still be profitable.. so remember your overhead affects your bottom line and it's up to you to strike that balance. If your current strategies are profitable and your edge is good, then why pay money for something unnecessary?

I don't need all the features of a platform like CQG, but there are some traders out there who have setups that require it.


BTW I use free prophet.net, although I love it so much I will probably drop the $600 a year for it. Also use web-based platforms like optionshouse and tdameritrade, and I have a TOS demo account so I get to play with the TOS platform on delayed data. Works for me, and my overhead is $0. Swing trading no problem, I'm limited at intraday trades but I can read the tape anyways so it's not too much of a handicap. If I wanted to step up my daytrading and scalping, I would probably need to pay for better stuff.
 
you have no need for esignal, quotetracker charting IB's data feed is just fine, if not better in my eyes

brackettrader is similar to ninjatrader but is free if you dont trade more than 5 cars at a time on the minis. That should get you going, unless there is some automated mess in that book that specifically requires those programs you mentioned
 
Thanks for the responses above. I am hoping to get more detail. I plan to focus mostly on the emini YM and perhaps some stocks. I will be using IB. First, do I need to subscribe to IB's "CBOT-Floor" data to trade the YM? For the moment I am considering the following software:

IB TWS
Quotetracker
Button Trader
Bracket Trader

I'm not sure if button trader and bracket trader do the same thing but in a different way or not. Does this list of software look like everything I will need to trade stocks and the YM?

As always, your opinions are very appreciated.
 
If your refering to John Carters book....all his setups (with exception of those that use indicators that you must purchase from him - brick plays indicator (i think was one)) are found on most platforms....You should be able to find the TICK/TRIN in IB, you can just use a calculator to get his pivot points (then just draw them into the charts), and all chart programs have Fib numbers (just of a few of the indicators he uses/talks about in his book).

Also, just a note of caution....I've read John's book, and heard his seminar at the Futures Trading Summit last year (in which he went over all his setups).....BE SURE YOU BACKTEST THEM PRIOR TO TRADING REAL MONEY.....I've heard some mixed reviews from traders that have tried executed them....i'd also be careful about the fact that most of his trades have either wide stops, or small risk:reward ratios (around 1:1).....With ratios like that you might fail over the long term.
 
I am brand new to futures trading and that book was suggested. I am about half way through the book. I'm also reading, "Come into my trading room" to get some of the basics.

Honestly though, I feel like information overload right now. My $40k account will clear and be ready this coming Monday. I'm excited and that bothers me. There is sooooooo much information on the net that I just don't know where to turn for some beginning setups that I can use without jeopardizing a lot of capital at once. I gathered from what John Carter talks about, that the emini dow is a good vehicle for beginners. Safer then individual stocks. Is there a differing opinion? I like what I am reading about ETF's but not sure if these are good to day trade. Forex? Seems like forex is a lot like gambling. I don't know. It's becoming analysis paralysis for me.
 
Quote from jsmooth:

If your refering to John Carters book....all his setups (with exception of those that use indicators that you must purchase from him - brick plays indicator (i think was one)) are found on most platforms....You should be able to find the TICK/TRIN in IB, you can just use a calculator to get his pivot points (then just draw them into the charts), and all chart programs have Fib numbers (just of a few of the indicators he uses/talks about in his book).

Also, just a note of caution....I've read John's book, and heard his seminar at the Futures Trading Summit last year (in which he went over all his setups).....BE SURE YOU BACKTEST THEM PRIOR TO TRADING REAL MONEY.....I've heard some mixed reviews from traders that have tried executed them....i'd also be careful about the fact that most of his trades have either wide stops, or small risk:reward ratios (around 1:1).....With ratios like that you might fail over the long term.
More...

1 YM for 1YM?? huh?
 
Quote from jsmooth:

If your refering to John Carters book....all his setups (with exception of those that use indicators that you must purchase from him - brick plays indicator (i think was one)) are found on most platforms....You should be able to find the TICK/TRIN in IB, you can just use a calculator to get his pivot points (then just draw them into the charts), and all chart programs have Fib numbers (just of a few of the indicators he uses/talks about in his book).

Also, just a note of caution....I've read John's book, and heard his seminar at the Futures Trading Summit last year (in which he went over all his setups).....BE SURE YOU BACKTEST THEM PRIOR TO TRADING REAL MONEY.....I've heard some mixed reviews from traders that have tried executed them....i'd also be careful about the fact that most of his trades have either wide stops, or small risk:reward ratios (around 1:1).....With ratios like that you might fail over the long term.
More...

I might also add that in regards to your first paragraph, I understood about 5% of it. Trin, brick plays, Fib numbers, yikes.....looks like Im going to go broke quick.
 
Quote from increasenow:

1 YM for 1YM?? huh?
More...

No....How much your willing to risk, vs the potential reward on the trade.....Risking 10 ticks to make 10 ticks (1:1). Ideally you want ratios like; risking 10 ticks to make 20 (or 30) ticks...that way you can be correct only 50% (or less) of the time and still make a profit.
 
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