Trading Plan for the Newbies

D

DonDinero

Hi, Fellow traders Iv been reading a lot about the newbies looking for some direction, so I posted this subject for them and those season traders willing to contributes to make up a trading educational plan for the beginners some that of a stepping STONE, Just by entering the forum they have taken there first step.

1. Look for volume breakouts.
Who will post # 2

NOW PLEASE THIS IS FOR THOSE WHO WOULD LIKE TO CONTRIBUTE A LITTLE KNOWLEDGE, IF YOU DON'T HAVE NOTHING GOOD TO SAY PLEASE DON'T SAY ANYTHING AT ALL THANK YOU.

p.s. ALL NEWBIES, THIS IS FOR EDUCATIONAL PURPOSE ONLY, YOU NEED TO RESEARCH WHAT IS WRITTEN AND FIGURE OUT WHAT ALL OFF THIS MEANS.

Thank to all ETers..
 
Myself, I don't believe #1 makes up a trading plan, no offense. This is part of a trading setup. A plan includes a set up, but much more. For instance, and I am still refining my plan, how much is your stop loss? Do you trade or not on FOMC days, when Bush is speaking, etc? List the markets you will trade and will not. What is your profit target? What is your cutoff put for that day, either positive or negative? If I make or loss this or that I will stop. Also you should have a disaster plan in place. Back up computer, redundant hi speed connection, battery back up, brokers numbers in speed dial, posted in front of you, cell phone handy, etc. Hopefully this is helpful as I have been collection ideas for a plan for some time.

Dan
 
great Dan

Its good to listen to early financial news. like bloomberg radio. Its free. I wake up a 7:00 Eastern time..And is the first thing I do.

Who will post # 3



A little contribution makes for a big satisfaction.
Thanks
 
Trade equities before Futures.

Less painful, Less leverage.

Wanna blow out an account in less than a month? Futures is the way to go. Wanna gain as much experience as possible in the markets for as long as possible? Then trade 100 shares of a few stocks and set a daily stop limit of $50 or $100 and stick to it and keep going.

Futures are not the way to go for a newbie trying to learn to trade. Once you get over psychological barriers of trading, then switch if you like.

Depending on your strategy, trading 100 shares might be able to make you enough money to get by.... or at least bring in a few dollars, be consistent with it. Once you do that, you can up your sizing and double it.

If you do good for the first month, go up 100 more shares, if not, stick with your current share size.

It's really nice way to trade, trading equities had taken the stress out of trading for me, and made trading fun, and not stressful like when I was trading Futures.

It really can make a difference. Go prop, put down 2 - 5k if you have to, and have them manage your risk, guarantee it would be wiser than blowing out a 30k account in less than a month like others have done with Futures.

If you want the $$$ or want to get greedy, go with Futures, but don't complain when you blow out your account. I know I have.
 
#5 Also look for a good platform something you feel comfortable using, and shop around for a good broker, IB, MB Trades Trade Portal, etc etc.
 
I agree JW, but I have only traded futures, so going to stock would be learening curve for sure, but your point is well taken. Plus day trading stock requires a much large starting balance.

I believe, and I am speaking from real personal experience, that most traders don't do their homework. For instance, and this is really embarrassing and will help a newbie, I never did the math to see how much I could lose on my crude futures a few years back. Not until, atleast, I was down 10k and then very quickly 28k due to pyramiding.

It comes back to discipline, homework, and a sound plan with a well tested trading set up.
 
Thanks guys.
#6 Also write down your work, losers or gainers to begging with.
every night look what worked for you and what did not work.
discipline is the key.
If you are going to start, do a little swing trading get you feet wet learn all the aspect of trading and finance, learn to interpret news, also look and study charts, be familiar with candlesticks and its patterns, also look at indications, MACD, stochastics, RSI, VOLUME, ADX and CASH FLOW accumulation. These are some of the indicators, their are many many more.
 
Know when to trade and when not to. Don't (fight) go against the trend.

When you lose, you want to get back and win the next trade (gambling instinct), and it's not easy to tell yourself "that's it for today!" Well, you don't have to trade EVERYDAY.
 
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