Newbie FAQ - a must read for newbies

Since this has been the fav question in the ES thread, I am reposting it here, courtesy of Volente (author) and Callmate (summary):

Q: What is the rule of 10 or T day theory?

"Summary of T day theory:

MWF short bias

T days long bias

Short the up spikes and gap ups on MWF.

Buy the gap down and down spikes on T days.

10:30 is a important time when trading

Rule of 10:

Rule of 10 says ES moves in 10 point intervals. If market is trending down and you want to fade the move, wait to go long when it drops 10 points fromt the previous low and if done properly you should be able to grab 8-10 ticks on the retracement.

If market is trending up wait for it to move 10 points over the previous high to short and then cover on the 3-4 point retracement."

In the attached chart you can see several examples of the Rule of 10 at work, including multiples, rule of 20...

(1377-87, 1396-76, 1376-86, 1384-94)
 

Attachments

I am posting this 10 rules for beginners here, because I completely agree with them:

Quote from cashmoney69:

1. Trade small..you'll last longer and more importantly, you'll learn something especially on losses.

2. Dont average down (doubling the number of shares you have after the stock continues to fall)...from a money management perspective, its just not a good idea.

3. Dont try and day trade with online brokers like scottrade, although they're a great broker (i use them as well)

4. The more indicators you use, the more confused you will get...this does NOT help you understand price action more, as one would think.

5. While its important to have a heads up on the markets, you dont need to understand the effect of news to trade...just watch the charts.

6. Trade after earnings, not before.

7. Dont trust online gurus that sell systems that "guarentee" profits.

8. Day trading fx (forex) or futures is better than trying to day trade stocks

9. Keep great records of all trades

10. Enjoy trading, if not find a better job.
 
Quote from Jesus_Freak:

That's my father's favorite poem :)
More...

Wonderful poem! Words of wisdom indeed! Wish we could practically follow them. We read and forget and blame that Trading is too hard!!
 
I agree with you, slowdown. If more people read this, a lot of questions can be answered. Also, maybe it will make us better traders or maybe not. After all, theoretical knowledge is different from practical.

We read and are not able to put in practice, so we blame the authors for trying to fool us of our money. :)
 
Lo! I think I forgot to quote slowdown's words for the recent post:

Quote from slowdown:

you should put this sticky thread on top of trading... i don't think this forum gets that many eyeballs....
More...

I agree with you, slowdown. If more people read this, a lot of questions can be answered. Also, maybe it will make us better traders or maybe not. After all, theoretical knowledge is different from practical.

We read and are not able to put in practice, so we blame the authors for trying to fool us of our money. :)
 
Hey guys My name is Christian and I am from Singapore. I was intrested in Eurex Trading and Forex trading as well. I am very new to trading and was wondering if someone can give me tips and pointers. I wasn't sure which way to go because I was also thinking about trading the NYSE. Maybe someone can help tell me which is the better way to go Eurex, Forex, NYSE. This is because I am not in the U.S. and I am not sure how trading the NYSE and Forex works out for people abroad. Is there anybody here who is not in the US and trades the NYSE or the Forex markets i would really appreciate if you could tell me your experience
 
What if I want to became a Quant, or develop some models to backtest and stuff... I'm clueless about this, I hold a degree in finance, I'm trading for a major regional bank but I'm clueless about developing models and that stuff and I really don't know what I should do to start. Any word of advice? thanks
 
You must log in or register to reply here.
Back
Top