Many of the books listed above have some valuable information. Most, however, neglect the one key component for your success in this endeavor âyour mind. I would suggest before you read anything else, check out a few of the books that focus on the traderâs âmind.â Mark Douglas, Alexander Elder, and Bill Williams have some decent information to get you started. There is no Holy Grail. Let me repeat this phrase. There is no Holy Grail.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Prop trading/ no experience
- Thread starter Spartan08
- Start date
i hate all of the advice u just recieved. (not that its bad advice, just its not what i would of wanted to hear in hindsight)
u decide for yourself. but i think you're gonna be working for a sub of assent, towerhill or whatever the hell they're calling themselves these days.
heres my best adbice, since i worked at a place not too different from your current situation.
If you're being forced to scalp on a .008, meaning u have strict loss limits/or for example u find yourself playing a lot of breakouts/breakdowns...do it for the experience and don't worry about your net pnl.
its all fine and dandy if your boss is raking in huge cash and swinging huge positions. Look to see if any body else is doing so. If so, ask how long it took to get those limits. Then, 1 of two things is going to happen. Either you're going to say, "i wanna be like that guy and swing huge pnl" and you will stay, or you'll say, "I can do this on my own with a lower rate"
i'd say earn your keep by going deeply net neg scalping, keep everyone happy, and earn the right to a higher tier size. Then if you're allowed to, start taking greater heat on your trades using your tier size in a different way, if thats allowed. If not, then leave.
that and save as much of the draw as you can or get another job to save up 5k. try and save about 500-1g a month so if the time comes, you can jump ship and won't be chained to the firm.
that and never, ever discuss rates with your firm. don't ever say, "my rate is too high" or "xzy firm has these rates". I'll bet u its actually in your contract, something that forbids you from either talking about anything related to the firm, OR seeking out info/shopping for rates. do not do this until u are ready to leave. and for gods sake do not reveal your identity on this board to ANYONE because your employer monitors this site like a hawk. (like if you start getting mysterious pms from people you don't know in real life asking where you work or when u started or what your name is, for the love of god don't respond)
u decide for yourself. but i think you're gonna be working for a sub of assent, towerhill or whatever the hell they're calling themselves these days.
heres my best adbice, since i worked at a place not too different from your current situation.
If you're being forced to scalp on a .008, meaning u have strict loss limits/or for example u find yourself playing a lot of breakouts/breakdowns...do it for the experience and don't worry about your net pnl.
its all fine and dandy if your boss is raking in huge cash and swinging huge positions. Look to see if any body else is doing so. If so, ask how long it took to get those limits. Then, 1 of two things is going to happen. Either you're going to say, "i wanna be like that guy and swing huge pnl" and you will stay, or you'll say, "I can do this on my own with a lower rate"
i'd say earn your keep by going deeply net neg scalping, keep everyone happy, and earn the right to a higher tier size. Then if you're allowed to, start taking greater heat on your trades using your tier size in a different way, if thats allowed. If not, then leave.
that and save as much of the draw as you can or get another job to save up 5k. try and save about 500-1g a month so if the time comes, you can jump ship and won't be chained to the firm.
that and never, ever discuss rates with your firm. don't ever say, "my rate is too high" or "xzy firm has these rates". I'll bet u its actually in your contract, something that forbids you from either talking about anything related to the firm, OR seeking out info/shopping for rates. do not do this until u are ready to leave. and for gods sake do not reveal your identity on this board to ANYONE because your employer monitors this site like a hawk. (like if you start getting mysterious pms from people you don't know in real life asking where you work or when u started or what your name is, for the love of god don't respond)
I'd say your lack of experience trading will quite likely be an asset and not a hindrance. To put it simply, you're starting with a clean slate. As long as you're an intelligent guy and have a personality suitable to trading, you should have nothing to worry about. Just take good notes on how you're trained to trade and stick to the rules/guidelines provided and you'll do well (again, speaking from experience). Some will say rules are made to be broken. Don't listen to them.
Quote from Spartan08:
Thanks to all for the advice.
There are so many books out there, and most of them seem to be for personal investing. Obviously, buying and selling stocks with other people's money, within a period of minutes or hours, is quite a bit different from personal finance. That's why I didn't know quite where to start. The basic books seem to be mostly for longer term investing, while books specific to day trading seemed a little too advanced for me at this point.
Anyways, thanks again.
I disagree on going to the library and reading lots of books. If the guy they are letting you sit with is making money what I'd do is just learn what he is teaching. The books would just confuse and distract me. Why try to learn 20 different methods at the same time on how to trade while your instructor is trying to teach you just one. I'm not a successful trader but I do know about focus and for most of us can just learn one thing at a time. For what it's worth I think I'd stay away from everything trading related except for what the instructor is teaching. Best of luck to you.
Quote from min_loss:
Forgot to mention, after the knowledge portion of your learning you will ask yourself a few questions. Such as, if millions of people read the same books on technical analysis, fundamentals, investments, short and long term trading, entry and exit strategies and so on...why do 95% of people fail. . .
Occam's Razor: do you really need to resort to psychology to answer that question? It's right in front of your nose.
After all these years I've come to the conclusion that books on trading psychology are a bunch of crock, in fact, I can't wait until I'm retired (or broke) to write one myself.
Quote from maczter:
I'd say your lack of experience trading will quite likely be an asset and not a hindrance. To put it simply, you're starting with a clean slate. As long as you're an intelligent guy and have a personality suitable to trading, you should have nothing to worry about. Just take good notes on how you're trained to trade and stick to the rules/guidelines provided and you'll do well (again, speaking from experience). Some will say rules are made to be broken. Don't listen to them.
I was hoping that my lack of experience might be an asset, like you said....
Quote from bigarrow:
I disagree on going to the library and reading lots of books. If the guy they are letting you sit with is making money what I'd do is just learn what he is teaching. The books would just confuse and distract me. Why try to learn 20 different methods at the same time on how to trade while your instructor is trying to teach you just one. I'm not a successful trader but I do know about focus and for most of us can just learn one thing at a time. For what it's worth I think I'd stay away from everything trading related except for what the instructor is teaching. Best of luck to you.
bigarrow, do you mean even books on basic technical analysis?
Thanks for your advice and for the advice of everyone who's resonded so far.
Quote from Spartan08:
bigarrow, do you mean even books on basic technical analysis?
Thanks for your advice and for the advice of everyone who's resonded so far.
Yes I'd stick to what the guy is teaching you, that is if he is making consistent money, but hell what do I know. I'm really more qualified to tell you what not to do and from my experience what not to do is try to much at once. It's a big trading knowledge world out there and it's real easy to get overwhelmed with information and ideas when really all we need is one method that works.