Recommendations for a day/swing trading noob?

S

spacebass5000

I've conducted a decent search though the forums looking for the same advice I am asking for and haven't really come up with much. Upon joining ET, I had at least figured there would be some stickies that dealt with what I am about to ask. Regardless, I shall ask my questions anyway. Flame at will... :o

I am getting into day/swing trading. I am a year into an MBA curriculum and have THOROUGHLY enjoyed every class that has even remotely been related to finance. However, I fully understand a trader this does not make!

My undergrad background is Computer Science/Engineering.

I am currently reading
"A Beginner's Guide to Day Trading Online" by Toni Turner and plan on following it up with the list of books she recommends. Most are centered around technical analysis. I am also interested in reading "High Probability ETF Trading" by Connors, Alvarez, and Penn.

Regardless, what would you tell a complete trading newb to do if you could do it all over again?
 
1) It's necessary to read and learn about what doesn't "work" so you can appreciate what does work.
2) There is some value in understanding the concept of range-extension from market profile.
3) There is some value in differentiating between corrective and impulsive price movement from elliott wave.
4) Those two things can aid you in letting the "trend be your friend" and not falling into the trap of excessive trading and generation of excessive commission dollars. :cool:
 
Quote from spacebass5000:


Regardless, what would you tell a complete trading newb to do if you could do it all over again?
More...

Like... you can sum it up in one paragraph.

There are just so many things.

For one thing you must do some work yourself. Posting a single question and expect a doctorial dissertation reply is not very likely to happen. There are many posts in this very site, this very forum, for beginners. From books to strategies to experience sharing (though you need to wade through many non-sense posts). These questions come up every month. Should someone spend the time to repost every month?
 
i don’t trade very often, so I’m more of an ‘active reader’ than an ‘active trader’.

1. INO TV, $49.49 quarterly fee, collection of videos by well-known traders, most of whom had written books, for example larry williams. a faster way to get a bird’s eye view of various approaches to trading.

for example

raschke (technical)
larry williams (swing trading, money management)
kaufman (systems, a little heavy in places, but at least his conclusions are well tested)

a better deal than books, in my opinion

everyone can write a book these days, everyone does. would you want to work through my book, 600 pages long, the main idea of which is ‘trade in the direction of the trend’? well, the idea is several words long, you don’t need 600 pages.

let’s save some trees, and some of our precious time. i am not affiliate with the ino tv

2. the van tharp secret of master game (an equity curve simulator, not really a game, very important)

3. hoadley probability calculator. don’t have to use it to trade, but have to understand that price range (but not direction) can be estimated using this tool, with some precision. read the stuff on hoadley’s site

4. burton malkiel, random walk down wall st. the book is in its 9th edition, i think, since 1974. hmmm, there must be a reason for that . . . don’t have to agree with it, but a lot of traders agree that it’s a strong theory, there is a random component in the market

5. jim cramer, lightning round. don’t take the recommendations, but look at cramer’s business model and learn. he gets paid salary by cnbc (stable, reliable cash flow), while shifting all market risks on the audience. plus it feels good, you’re famous, you have your own show

trading is very unstable and it’s better to have an independent source of cash flow; or play with other people's money (hedge fund model) so that all market risks get shifted on other people ("investors"). you get fees (stable cash flow). broker model - similar thing, take commissions, keep turnover as high as possible, shift market risks on traders

Varima Garch
 
Quote from spacebass5000:

I've conducted a decent search though the forums looking for the same advice I am asking for and haven't really come up with much. Upon joining ET, I had at least figured there would be some stickies that dealt with what I am about to ask. Regardless, I shall ask my questions anyway. Flame at will... :o

I am getting into day/swing trading. I am a year into an MBA curriculum and have THOROUGHLY enjoyed every class that has even remotely been related to finance. However, I fully understand a trader this does not make!

My undergrad background is Computer Science/Engineering.

I am currently reading
"A Beginner's Guide to Day Trading Online" by Toni Turner and plan on following it up with the list of books she recommends. Most are centered around technical analysis. I am also interested in reading "High Probability ETF Trading" by Connors, Alvarez, and Penn.

Regardless, what would you tell a complete trading newb to do if you could do it all over again?
More...

Start with books about chart reading and technical analysis and don't do the mistake to get into the psychological stuff at the beginning. The psycho thingy (in regard to trading) is mostly written from people who miserably failed and shifted their activities from analysing markets to analysing (and therewith to a very high degree creating) struggles and problems they have been personally facing.

When you learn to read charts based on ideas from books then immediately do your homework on it and look back how often in the past reality confirmed theory in the book and how often it turned out to be - like mostly - a 50/50 setup. By doing this you will start to recognize there are things that attract your attention more than others and this is where your real work starts: specialising and optimising according to the way you observe things and where your talents are hidden. The sooner you learn to take responsibility and the wheel in your own hands the faster you will recognize to understand the 3 most important traits to profitable trading - Ambition, Creativity and Discipline. I judge creativity as the most important due to ever changing market conditions and it builds the key to independence which you probably want to achieve.

More aspects like money management can be learned at a later stage and you have time...

In this regard you can basically start with every book as long as you don't forget to instantly verify the value of its content for yourself.
 
Quote from spacebass5000:

I've conducted a decent search though the forums looking for the same advice I am asking for and haven't really come up with much. Upon joining ET, I had at least figured there would be some stickies that dealt with what I am about to ask. Regardless, I shall ask my questions anyway. Flame at will... :o

I am getting into day/swing trading. I am a year into an MBA curriculum and have THOROUGHLY enjoyed every class that has even remotely been related to finance. However, I fully understand a trader this does not make!

My undergrad background is Computer Science/Engineering.

I am currently reading
"A Beginner's Guide to Day Trading Online" by Toni Turner and plan on following it up with the list of books she recommends. Most are centered around technical analysis. I am also interested in reading "High Probability ETF Trading" by Connors, Alvarez, and Penn.

Regardless, what would you tell a complete trading newb to do if you could do it all over again?
More...
wow.. this would be an extremely extremely long answer.

things i would do differently

wouldnt have jumped into the 5min chart and acted like i knew what i was doing.

wouldnt have dumped all the money i had at the time into it.

would have paid more attention to wat i was doing with my degree and secondary degree at the time.

would have used smaller lot sizes.

would have demoed for at least a year.

i would be doing what i love rather than trading... trading is a life sucking.. fullfilling and yet unfulfilling job.

ive done it for around 4 and 1/2 years now and im going back to school soon to do something else..

trading isnt struggle then magically you understand and life is rainbows and lollypops. trading is a struggle everyday ive been through multiple GF's because sometimes when i trade i get angry and yell at them.. or i call them to vent when my broker collapses... or i get so into a trade i block them out.. its a consuming job..

no one trains you for this.. know one seems to know how to do it... all the books you will read will all be BS.. 95% of the crap you read on forums and the web will all be bs. Know there is an industry built around "training" traders and thats where the money is made for those who can not trade.

stay longer term risk small amounts and learn to make money when no one is making money and learn how to protect your trade while still making money while its moving against you.. sell when things are optimistic and buy when things are in horrible.
 
Quote from Pita:

don't do the mistake to get into the psychological stuff at the beginning.
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ha ha ha good point . . . i've been reading mark douglas trading in the zone . . . it's a powerful text (seriously), almost zen-like . .. plus the picture on the cover has a mysterious feel to it . . . but then, somewhere on p. 150 i asked myself why am i reading this?

still haven't finished the book . .. i do look at the cover quite often though, it's really, really nice to look at . . .

sometimes, the cover of the book alone is worth the money . . .

not criticizing douglas, good job . .. but the cover of the book is at least as good as the text

Varima Garch
 
Quote from Ms Varima-Garch:
......almost zen-like........but then, somewhere on p. 150 i asked myself why am i reading this?
More...
1) Don't get hung up on "zen crap".
2) I'll give you my succinct summation of Douglas's book(s). "As long as you have a well-defined exit strategy, you shouldn't get destroyed by one trade in the market. You'll create more time for yourself to learn the things you need to learn only via actual trading. The end. :cool:
 
Quote from nazzdack:

1) Don't get hung up on "zen crap".
2) I'll give you my succinct summation of Douglas's book(s). "As long as you have a well-defined exit strategy, you shouldn't get destroyed by one trade in the market. You'll create more time for yourself to learn the things you need to learn only via actual trading. The end. :cool:
More...

i thought the message was more general, something like "forget your past fears, relax, and just unleash that energy flow . . . you know . . . let your winners run . . . " :D
 
i think this guy may be more up to speed on how to unleash various inner

www.arikiev.com/kiev_podcast.htm

i especially like podcast #19, the breathing exercise

at least he was a high-level sports psychologist at some point

i have been trying to hypnotize my equity curve, but it just won't give in, i think i need to work at it more

let me say this: if i manage to 'remove' the feeling of shock, when looking at my equity curve, i think i should be able to hypnotize it successfully
 
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