Strategies for a beginner

• What strategies would you recommend for someone to start experimenting with?

I would focus on the daily, weekly and monthly time frames and trade around identified S/R levels. Also, you might consider trading an occasional breakout setup.

• I’m also going through a few books on trading psychology (Disciplined Trader, Trading Zone, Come into my Trading Room and Trading for a Living). Other books please?

Technical Analysis of Stock Trends by Edwards and Magee.

Good Luck,

T
http://actionpointsta.blogspot.com/
 
Lily
For some unknown reason i thought Lilypond was a guys handle. But we will not dwell on that, let me give you a little bit of what you are after.

Trading is terrific, it is fun, a challenge, it is difficult, it is simple, you must be goofy to even consider trading, it means are must be willing to unlearn what life has taught you before, it means you will never be normal again, you can make 25k a week, or even more, you can probably enev trade on a cruise ship, etc, etc. GET the picture?

Now time to give the teacher some serious homework. Do not worry about jumping into the water feet first, sure experience is the best teacher but this game has a LONG learning curve so patience is on your side as long and you are looking, reviewing, getting screen time. I am not recommending paper trading, papertrading is learning the mechanics and past that it is useless. I am a firm believer that "CONDITIONING" yourself before you trade live is very important. You condition yourself by reading, etc from the boys and girls that have been in the game for a couple decades. Do not just read what they say, you must comprehend what they are telling you with deep understanding that they are trying to help you avoid all the heartaches they experienced. I will give you a couple starter websites to mull over with:

The first one is about trading and a little hard to grasp as a newbie but the more you learn the more you will, should go back and reread THE PHANTOM OF THE PITS. Go to the website and on the left click on the various chapters and follow the whole deal. It is worth your time. here it is: http://www.webtrading.com/phantom/preface.htm

After you do that here is what seperates the men from the nerds, the lady from the bimbo. http://money.cnn.com/magazines/fortune/fortune_archive/2006/10/30/8391794/index.htm

More homework ,, ha http://www.wired.com/science/discoveries/magazine/15-06/ff_mindgames

PS: I am NOT a fan of hockey at all, bunch of morons fighting for the idiots that go to watch that.

Well this should help you some, enjoy and REREAD Phanton Of the Pits as you progress and you will see more and more the truths. Do not worry about money getting started yet, you have plenty of lessons to sink in , DEEPLY, yet. . Enjoy.
 
You can't really expect to generate too much income off 21k position trading. I would recommend finding a trend on a weekly chart and timing an entry into the trend on a daily chart, ie wait for a pullback on the daily.

If it went really well you could get with Bright and take on lots of small positions to maximize returns. [/B][/QUOTE]


Didn't word the 21K well.....I don't plan to make a living off that money. I have retirement and 401K for that. I want to learn this and supplement my income.

Please explain "get with Bright".

Thanks
lily
 
Quote from bighog:

Lily
For some unknown reason i thought Lilypond was a guys handle. But we will not dwell on that, let me give you a little bit of what you are after.

I am a firm believer that "CONDITIONING" yourself before you trade live is very important. You condition yourself by reading, etc from the boys and girls that have been in the game for a couple decades. Do not just read what they say, you must comprehend what they are telling you with deep understanding that they are trying to help you avoid all the heartaches they experienced. I will give you a couple starter websites to mull over with:
More...


-------> Bighog,
Exactly the kind of advice I want. Thank you

btw...lilypond10 is old from a 1998 yahoo email account. Must of been popular cause I couldn't get 1-9.

Lily
 
Oh sorry, I meant Bright trading a prop firm that lets you hold overnight. You could carry like 250k worth of overnight positions if they were diversified to keep your risk low, ie 100 2.5k positions long and short. That way you could really leverage your 21k into a decent second income without increasing your risk too dramatically. Otherwise you couldn't really expect to make more than 20% a year position trading.
 
If you could put together $25,000, you could qualify for a day trading account. I think small position day trading with disciplined stop losses would provide you a good education with less risk as long as you agree up front to stick to your plan no matter what you brain starts telling you. I started out swing trading and was very successful at first, then got caught in some nasty overnight gaps and had to wait quite a while (2 weeks to 2 months) for the stocks to recover, all the while my capital was tied up.

I have to ask BIGHOG: Are you a certified NLP-er? Your post was very well framed :)
 
Lily, based on the requirements and concerns you setforth, you obviously want no bs ideas.

Go to www.youtube.com/snp500trader

Watch his stuff, read his viewers comments. He has like 1800 or something subscribers. There's trading setups, psychology, the guy helps people, and doesn't like gurus either. Sounds like something you and your husband can benefit from. Avoid the scammers and snake oil losers in your search. I gave you my idea above so good luck in your search.
 
nodoji, you are welcome.

Lilypond......... a sugesstion for later when you are up and running, the E-Mini contracts are the way to go. ES or NQ will give you the best bang for the buck out there. Some will say different but you always gonna get that in a forum of traders. You have a couple years to consider internship before you get a license to trade, so do not feel presure to jump in yet. This game has approx 90% failure rate so from the start be patient and stay in the game.

If i remember correct it was another ET member that reminded me of The Phantom of the Pits, BANJO, his posts are well worth reading later.

Stocks trading is your dads stuff, stay modern, trade futures. The best bang for the buck, ES requires 500$ per contract to trade. Review the stuff at CME GROUP web site. The beauty of trading stock index futures is quite easy to understand because technical analysys is what trading is all about. Trading is a numbers game that is odds based from the signals you develope to place trades. Many fail to grasp that and think intelligence and all knowing useless corporate stuff matters. Just trade what you see. Continued good learning to you. NOTICE i did not say LUCK. The other 90% depend on luck.
 
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