Yes you can make a decent living trading.
Systems: LTCM proved with not one, but TWO, Nobel prize winners that "systems" do not work. They will blow up.
The small retail traders (us) are but gnats on an elephant's back riding along for the ride. You have some basic experience so just build on that. Learn 3 or 4 basic highly liquid stocks that are in the Nas 100 or better yet the Dow 30. Has anybody noticed that the NYSE trades 1.4 billion almost every day. The hedge funds are daytrading the indices. Very obvious.
Most traders have never been in business for themselves so they treat this as a game. It is a way to make money, nothing more, nothing less. I would even go so far as to state that the "love of the market" is a big negative. This is like a gambler that loves the "action".
You must have a business plan. Pretend you going to the bank to get a SBA loan to open a shoe store. You don't "love shoes".
You think there is an opportunity to make some money in the shoe business. Rent is low, cost are reasonable, execution and communication is very efficient. How would you explain to the banker to loan you $50,000 to begin this endeavor. Put a pencil to the numbers and see what happens.
For books, I think Bill O'Neill's is the most basic. Buy stocks that are going up. If they aren't going up, don't buy them. CUT losses quickly and sharply. I have never heard of a technical guru that got rich off of trading. I think Pristine has some pretty good basic understanding of the business of trading. Find your "niche" in the market. Know what you want to do and when to do it and when NOT to trade.
Good luck,
Steve
Systems: LTCM proved with not one, but TWO, Nobel prize winners that "systems" do not work. They will blow up.
The small retail traders (us) are but gnats on an elephant's back riding along for the ride. You have some basic experience so just build on that. Learn 3 or 4 basic highly liquid stocks that are in the Nas 100 or better yet the Dow 30. Has anybody noticed that the NYSE trades 1.4 billion almost every day. The hedge funds are daytrading the indices. Very obvious.
Most traders have never been in business for themselves so they treat this as a game. It is a way to make money, nothing more, nothing less. I would even go so far as to state that the "love of the market" is a big negative. This is like a gambler that loves the "action".
You must have a business plan. Pretend you going to the bank to get a SBA loan to open a shoe store. You don't "love shoes".
You think there is an opportunity to make some money in the shoe business. Rent is low, cost are reasonable, execution and communication is very efficient. How would you explain to the banker to loan you $50,000 to begin this endeavor. Put a pencil to the numbers and see what happens.
For books, I think Bill O'Neill's is the most basic. Buy stocks that are going up. If they aren't going up, don't buy them. CUT losses quickly and sharply. I have never heard of a technical guru that got rich off of trading. I think Pristine has some pretty good basic understanding of the business of trading. Find your "niche" in the market. Know what you want to do and when to do it and when NOT to trade.
Good luck,
Steve
