Jennette,
If you are a real person, and a new trader, a daytrader, (vs swingtrader), and really want some guidance, here is what I can offer.
First off, I am a real person, and a daytrader in training. I have been kicking at this for almost 2 years, and have learned some things, mostly at considerable cost of time, money, and mental pain.
If you were my daughter, and starting to trade today, I would tell you to do the following. This is what I wish I had known the day I walked into the bank to fund my first trading account.
I suggest the following:
Read this forum often. Become familiar with www.siliconinvestor.com. Especially the âdaytrading fundamentalsâ thread in the âshort term tradingâ group. They have a grouping of daytrading topics. (link anyone ? )
Read all 3 of Tony Ozâs books. Read Mark Douglasâ âTrading in the Zoneâ. Read John Murphyâs âtechnical Analysis of Chartsâ and either Nissonâs or Morrisâ books on candlesticks. These books give a good enough picture of the technicals of trading so that you know what everybody is talking about. By the way, I must have 50 books on trading, and I have gotten something from them all. BUT⦠donât try to become a technician of the market. Most indicators are utterly useless to a beginner. (My opinion is that most are rubbish to anyone, but some folks love them)
Trade only 100 shares, and one trade at a time. The only broker available that will enable you to do this cheaply (that I am familiar with) is Interactive Brokers. A penny a share for 100 shares = $1.00 trade cost per side. ($2.00 total for both in and out.). This will keep you from being eaten up by commissions. It will also keep commission costs from being an undue influence on your trade. There are hundreds, if not thousands of postings about IB here. Visit their website www.interactivebrokers.com. You will have to take a simple test and claim some trading experience to open an account. There is also a thread on siliconinvestor called âinteractive brokers/timberhillâ. One thing.. you MUST trade to learn trading.
There are a number of chatroom and stock picking sites. I have sampled several and joined a couple. Reality Traders is as good as any, and much better than most.
Check out, then join, Reality Trader chat room. Vigorously apply yourself to studying ALL of their training materials. Observe what they do, listen to why. Trade some, remember 100 share lots only, and watch a lot.
Trade the QQQâs, for all the reasons listed on Reality Tradersâ index trading room information page. I traded the QQQâs without plan or much knowledge for a year through IB, and it only cost me a few hundred bucks including commissions. The Qâs are very forgiving for beginner traders.
Prepare to spend a lot of time, energy, and frustration learning to be a trader. There is nothing magical about trading. It is, however, different than spending the effort in becoming an engineer or doctor in that, these endeavors are almost certain to have a payoff at the end of your preparation. There is no guarantee that the effort to become a trader will result in a successful trader. Perhaps it is more akin to a desire to be an entertainer or professional athlete. The effort to learn must be accompanied by some native abilities, in the case of trading, to master the psychological and discipline aspects of trading.
There you are Jennette, the holy grail all laid out for you.
Beat of luck. If you are a novice, then you have stumbled onto a fine site.
If you are a real person, and a new trader, a daytrader, (vs swingtrader), and really want some guidance, here is what I can offer.
First off, I am a real person, and a daytrader in training. I have been kicking at this for almost 2 years, and have learned some things, mostly at considerable cost of time, money, and mental pain.
If you were my daughter, and starting to trade today, I would tell you to do the following. This is what I wish I had known the day I walked into the bank to fund my first trading account.
I suggest the following:
Read this forum often. Become familiar with www.siliconinvestor.com. Especially the âdaytrading fundamentalsâ thread in the âshort term tradingâ group. They have a grouping of daytrading topics. (link anyone ? )
Read all 3 of Tony Ozâs books. Read Mark Douglasâ âTrading in the Zoneâ. Read John Murphyâs âtechnical Analysis of Chartsâ and either Nissonâs or Morrisâ books on candlesticks. These books give a good enough picture of the technicals of trading so that you know what everybody is talking about. By the way, I must have 50 books on trading, and I have gotten something from them all. BUT⦠donât try to become a technician of the market. Most indicators are utterly useless to a beginner. (My opinion is that most are rubbish to anyone, but some folks love them)
Trade only 100 shares, and one trade at a time. The only broker available that will enable you to do this cheaply (that I am familiar with) is Interactive Brokers. A penny a share for 100 shares = $1.00 trade cost per side. ($2.00 total for both in and out.). This will keep you from being eaten up by commissions. It will also keep commission costs from being an undue influence on your trade. There are hundreds, if not thousands of postings about IB here. Visit their website www.interactivebrokers.com. You will have to take a simple test and claim some trading experience to open an account. There is also a thread on siliconinvestor called âinteractive brokers/timberhillâ. One thing.. you MUST trade to learn trading.
There are a number of chatroom and stock picking sites. I have sampled several and joined a couple. Reality Traders is as good as any, and much better than most.
Check out, then join, Reality Trader chat room. Vigorously apply yourself to studying ALL of their training materials. Observe what they do, listen to why. Trade some, remember 100 share lots only, and watch a lot.
Trade the QQQâs, for all the reasons listed on Reality Tradersâ index trading room information page. I traded the QQQâs without plan or much knowledge for a year through IB, and it only cost me a few hundred bucks including commissions. The Qâs are very forgiving for beginner traders.
Prepare to spend a lot of time, energy, and frustration learning to be a trader. There is nothing magical about trading. It is, however, different than spending the effort in becoming an engineer or doctor in that, these endeavors are almost certain to have a payoff at the end of your preparation. There is no guarantee that the effort to become a trader will result in a successful trader. Perhaps it is more akin to a desire to be an entertainer or professional athlete. The effort to learn must be accompanied by some native abilities, in the case of trading, to master the psychological and discipline aspects of trading.
There you are Jennette, the holy grail all laid out for you.
Beat of luck. If you are a novice, then you have stumbled onto a fine site.
