Can anyone be my trading mentor? (short term trading)

[Bugsy]

isnt that the definition of survivorship bias? the OP is named survivor

If only it was as easy as naming yourself. I'd name myself PaulTudorJones2.0

 

[Sergio123]

Things are changing. Better to do an ROI comparison on college costs vs a paid apprenticeship and investing (not day trading) in the stock market.

It used to be that you would need to go to college just to give you the necessary knowledge to do an ROI. But now all of the information that you would need is available for free on the Internet.

 

[murray t turtle]

Hello, I am a 2024 high school graduate looking for ways to enhance my trading strategy, specifically in the short-term (swing trade/day trade) as I can take on greater risks. I have been analyzing the market for a year and a half, but my studies are far from reliable. My current knowledge is limited only to setting up resistance & supporting levels, identifying basic price patterns such as channels and head & shoulders, utilizing market profile/RSI to confirm the potential volume levels, and reading basic financial reports/statements (I took accounting in high school), and finding and comparing various financial ratios across sectors. However, I feel like this is still not enough as my goal is to make a living out of investment. Although I would attend a college that offers a great business program, I would rather advance faster to achieve my more ambitious goals. Right now, I am in a progression deadlock, without a clear path for further polishing my trading behaviors. I would like to know if anyone is interested in teaching me what I should do next and I would prefer to communicate on third-party application or website.

Many thanks to the people who read this,
Sincerely

%%
Good questions;
+did you take Dave Ramsey in Hi School??
2]Prefer a public forum.
MANY best traders-investors do;
AUM,
business,
farm ,
garden,
business.......................Mr Nobert said ''you repeated '' Yes ,I meant to.LOL

 

[SURVIVOR]

There have been many comments recently, and I appreciate everyone's dedication to my question. Still, I found that many people are going off-topic or are simply not helpful. Let me position myself in another way. For those who would like to answer the thread, please, if interested, offer me suggestions on what steps a short-term trader like me should take next in improving trading strategies, considering my age and status. If you would like to share other opinions, such as "focus on your college," "invest long-term instead of trading short-term," or "go get other jobs," please do not post them here, as I have never requested ideas such as those. You could directly message me privately. Thank you for your cooperation.

 

[newwurldmn]

There have been many comments recently, and I appreciate everyone's dedication to my question. Still, I found that many people are going off-topic or are simply not helpful. Let me position myself in another way. For those who would like to answer the thread, please, if interested, offer me suggestions on what steps a short-term trader like me should take next in improving trading strategies, considering my age and status. If you would like to share other opinions, such as "focus on your college," "invest long-term instead of trading short-term," or "go get other jobs," please do not post them here, as I have never requested ideas such as those. You could directly message me privately. Thank you for your cooperation.

read a ton of books, study this forum and ask pointed questions.

Be open to other methods rather than support and resistance.

if that’s also off topic then you are done.

your thread topic has been addressed several times on this forum already. Anyone contributing here is doing so out of their own kindness despite your lack of initiative in doing your own reading.

 

[SURVIVOR]

If you want to become a successful trader, the first thing you as an 18-year old need is to develop a highly sensitive BS detector. (I'm guessing that you're around 18-years ???)


Hint #1:
Learn to distinguish the difference between what is fact and what is someone’s opinion (or hidden agenda) presented as a “fact”.

Hint: #2:
“Elite Trader” forum does not necessarily mean that people here are successful traders. Sorry to disappoint you. It might actually be detrimental for you to “learn” for most forums.


Hint #3:
Trading is a business, and needs to be treat as such, it’s not about clicking buy/sell buttons.


Hint #4:
Respect risk and make managing the smoothness of your equity curve your priority. Consider taking advantage of compounding interest since you’re young instead of taking on additional risk. Use your young age and time to your advantage, instead of pissing away your money by taking unnecessary risk. If you’ll become a good trader, then you can take on more risk, but not when you don’t know the limits of your knowledge and personal psychology (the market will test your every weakness).


Hint #5:
Continue your school education so you have a career as a safety net because most people fail at trading regardless how much they want to make it. Trading psychology/emotions is what screws up most people. Have a back-up plan to earn income because the odds are against you. (Don’t trust people who promise you riches).


Hint #6:
There is nothing wrong with trading resistance / support levels, channels, etc. Unfortunately, most people don’t how to trade them (there is more to it than drawing an abstract line). Check out Tony OZ’s book, he is legit trader, even though he wrote the book 24 years ago. Still a good read and his methods might resonate with your trading approach. (Don’t worry about the hype about algos that you read about on this forum, trading principle remain more less the same).

The Stock Trader: How I Make a Living Trading Stocks: Oz, Tony: 9780967943503: Amazon.com: Books

There are some trading methods that might be more efficient than others, but ultimately you need to trade what you believe. A book “Market Wizards” (recommended read) is a testimony to how some of the best traders in the world have very different trading methods. Do what works for you, and make it your own strategy to fit your own personality.


Hint #7:
Rember to live a balanced life, trading should be about improving the quality of your life, and NOT about getting married to a computer screen. Some people just spend whole days stressing in front of the screens and make much less than swing traders. Don’t get sucked into intraday trading (at least as a beginner).


Hint #8:
You can purchase a software which will let you replay the past bars ‘minute by minute’ (or whatever timeframe you prefer) at much faster speed and this way you can practice your technical analysis much faster than wasting your time with screentime. Why sit in front of a monitor say for six hours each day, when you can practice with bar-replays at much faster speed ???

Once you have your strategies nailed down, then you can start practicing trading live with small size. Live trading is where you’ll start dealing with your emotions, and most likely you won’t be able to replicate your demo results in your live trading. Demo trading won’t prepare for live trading.

However, some people just sit in front of their computers all day long, while trading live (gambling) without having their own strategies fully defined (filters, setups, market dynamics, entry, SL, Re-entry, trade management, worst case contingency, etc). Don’t make the same mistakes, don’t do live trading before you have your strategies fully sorted out or you’ll be juggling too many variables all at once (eg. no edge + emotional decision making = lethal combo).


Hint #9:
Do your own due diligence, and don’t listen to me either, test everything for yourself.



Hint #10:
If I’d be 18, I’d stay away from trading, it’s a pain in the ass. Yet at the same time, don’t let anyone discourage you from your dreams. Don’t worry, follow your bliss, but have back up plan.

Thank you for your advice. I am incorporating new concepts such as anchored VWAP, MacD, and Fibonacci retracement as I continue to trade stocks. The current trading software that I use is ThinkorSwim, which I believe is a sophisticated trading platform that I will use for many years as I inching myself to become a real trader. As you have mentioned, the university is indeed my backup plan, and in fact, my college scholarship offers me more than the direct tuition cost and indirect expenses which is another reason I want to improve my skills before trading larger quantity and the probability of facing larger losses. Thank you again for your comment and support.

 

[SURVIVOR]

read a ton of books, study this forum and ask pointed questions.

Be open to other methods rather than support and resistance.

if that’s also off topic then you are done.

your thread topic has been addressed several times on this forum already. Anyone contributing here is doing so out of their own kindness despite your lack of initiative in doing your own reading.

I have already gone through all updated commentaries, and the few clues I have are reading books that were suggested in addition to a few other commenters who emphasize training psychological mentality and pattern spotting. I have never mentioned in my comment that I wouldn't try new trading strategies and tools that may help me as I adapt to the current market more. In fact, I regularly check this thread to see if there are any other helpful tools or advice that other traders have. If you believe that I haven't appreciated the comments enough, then you don't have to post any replies here.

 

[poopy]

Delta1 (shares, futures, no convexity) is really fcking hard. There are a handful of guys on here who are profitable. A handful.

I trade vol. I had a great Delta1 PNL-run in 2019-2021 but as soon as I met my target I went back to trading equity-vol.

 

[DeMurph]

Trading and investing are two distinct approaches to participating in the financial markets, each with its own strategies, goals, risks, and time horizons. Here's a detailed comparison:

Trading
1. Definition:

• Trading involves buying and selling financial instruments such as stocks, commodities, currencies, or derivatives within short time frames to capitalize on price fluctuations.

2. Time Horizon:

• Trades can last from seconds to months, but typically they are much shorter (minutes, hours, days, or weeks).

3. Objective:

• The primary goal is to make quick profits from short-term price movements.

4. Strategies:

• Common strategies include day trading, swing trading, and scalping.
• Traders often use technical analysis, chart patterns, and market indicators to make decisions.

5. Risk and Reward:

• Higher potential for quick gains, but also higher risk of substantial losses.
• Requires constant monitoring of the markets and quick decision-making.

6. Tools and Techniques:

• Technical analysis is predominant, focusing on price patterns, volume, and various indicators.
• Use of trading platforms with real-time data and advanced order types.

7. Transaction Costs:

• Higher due to frequent buying and selling, which can include commissions, spreads, and short-term capital gains taxes.

8. Psychological Factors:

• Requires strong emotional control to handle the rapid pace and volatility of the markets.

Investing
1. Definition:

• Investing involves allocating money to assets like stocks, bonds, mutual funds, or real estate with the expectation of generating income or capital appreciation over a longer period.

2. Time Horizon:

• Investments are typically held for years or decades.

3. Objective:

• The primary goal is to build wealth gradually over time through the appreciation of asset value and reinvestment of earnings.

4. Strategies:

• Strategies include buy-and-hold, value investing, growth investing, and dividend investing.
• Investors often use fundamental analysis, examining a company's financials, management, and industry position.

5. Risk and Reward:

• Lower short-term risk compared to trading but subject to market fluctuations over the long term.
• Potential for significant long-term gains through compounding.

6. Tools and Techniques:

• Fundamental analysis is predominant, focusing on financial statements, earnings reports, and economic indicators.
• Long-term financial planning and portfolio management.

7. Transaction Costs:

• Lower due to less frequent trading, leading to lower commissions and long-term capital gains taxes.

8. Psychological Factors:

• Requires patience and the ability to withstand market downturns without panic selling.

Key Differences

• Time Commitment: Trading requires more time for research and monitoring the markets, while investing requires periodic reviews and adjustments.
• Skill Set: Trading demands a high level of technical analysis skills, whereas investing focuses on fundamental analysis and long-term economic trends.
• Financial Goals: Traders seek quick profits, while investors aim for wealth accumulation over time.
• Risk Tolerance: Traders usually have a higher risk tolerance due to the volatility and short-term nature of trading, whereas investors may prefer lower risk with a focus on long-term stability.

Conclusion
Both trading and investing can be profitable but require different approaches and mindsets. Traders need to be more active and ready to react to market changes quickly, while investors benefit from a more passive and patient approach, relying on the growth of their investments over the long term. Your choice between trading and investing should align with your financial goals, risk tolerance, and time commitment.

gpt 4o

definitely an AI generated text.

 

[poopy]

Thank you for your advice. I am incorporating new concepts such as anchored VWAP, MacD, and Fibonacci retracement as I continue to trade stocks. The current trading software that I use is ThinkorSwim, which I believe is a sophisticated trading platform that I will use for many years as I inching myself to become a real trader. As you have mentioned, the university is indeed my backup plan, and in fact, my college scholarship offers me more than the direct tuition cost and indirect expenses which is another reason I want to improve my skills before trading larger quantity and the probability of facing larger losses. Thank you again for your comment and support.

@PPC is an alias of a banned nick @Xela. You need to avoid various serial trolls who are absolutely clueless. @Handle123, PPC, et al.