Yet another noob wants to trade thread...

Quote from BartS:

Trading style: I only trade very high probability setups with very tight stops and 60% of my trades are profitable...I may only trade 5 or 6 setups per day and usually can steal 50 to 300 ticks from the market (only equities).Losing days are usually small since I have predetermined daily stops, there are days I can't trade, because the market changed or behaves differently...Once I pull a few losers in a row (5 tick max drawdown - 10 for larger stocks such as AAPL RIMM POT or GS) I stop trading and watch the screen the rest of the day to figure out what isn't working and can usually readjust the next day...Most trades have an automated feel to them, all limit orders with stops, I only change stops to lock profits, never to allow a larger drawdown. I have found this system to be very profitable especially with ranging or high/low basing stocks...
More...

If you can abide by these rules when trading live, you will be successful. The first time you violate one of your rules, no matter what the outcome of the trade is, send me $1000. Second time, send me $2000. Shouldn't be a third time.

You need to maintain a $25K minimum in your account to day trade equities.
 
Howdy Sir,

What NOD stated reminded me of one of my truisms


A normal citizen can screw up at their 9-5 job, and as long as they don’t get fired, they will get a pay check every week… We screw up even a small amount, and it is immediately reflected in our P/L.

(and please don’t confuse screwing up with your normal distribution of profitable / non-profitable trades)



Did I trade, and do I trade by myself – Yes…. But I would be stupid, and selfish, to say I became profitable on my own


My wife and kids went through the hell with me and all along my wife’s support never waivered one bit.. I would tell her I lost money – she’d tell me to remove my head from my neither region and figure it out

As it turned out the answer was staring at me the whole time… I was just to blind (wrapped around the axle) to see it


I purposely do not trade with others now – too much ego and BS…. Please know – Confidence will make you money… Ego will break your account.. Please learn the difference



I would also like to say I was well funded – but I can’t (it would be a lie) – I started out with 40K, lost 2/3 of it and refunded my account again….


The best thing I can say is – No matter if you start out with 30K or 300K – trade real small size (50 or 100 shares) until you are consistently profitable… and can manage losing trades 100% of the time with out second thought or hesitation


Then you can start working toward making a living

I remember my first 5 trades well – made decent money – worst thing that could have happen – because it will mess you up in the long run





A comment about following and reading the markets


I read a thread today where Gnome posted back in 2005 – he stated

“You only make money when your position is in tune with PRICE. Either it is, or it isn't.

I recommend traders learn to trade off of "PRICE ONLY". They will make more money and do so with less risk. “


I will say this again – it does not matter what I think – it only matter what price is doing and that I trade it accordingly 100% of the time... While also knowing eack trade "could" be a loser


No one.. and I mean NO ONE

Can out think, out strategize, out guess or call the market consistently – No One

Anyone tells you they can is lying


The price of whatever you’re trading will do exactly what it will do…. To that end – Please read Gnome’s quote again Sir and follow it


Regards
RN
 
Quote from Redneck trader:

I remember my first 5 trades well – made decent money – worst thing that could have happen – because it will mess you up in the long run
More...

It took me 10 months out of my first year trading to undo the damage caused by the trades I made in the first 2 months, all of which were huge winners. The eventual cost of those first 2 successful months was staggering.
 
Quote from BartS:

Here is my situation:

29 not married, no kids, work from home.
Currently selling my house, not upside down but may have to resort to a short sale (5% to realtor 10K taxes closing costs property value around 400K) to get out.My work slowed down greatly to the point my savings are pretty much done because I'm paying more in bills (mortgage taxes utilities 4K/month alone) than I can make at the moment.

After moving out and going to rent for a while (I am one of those that believe we still have a leg down to go in real estate) my after tax disposable income (after living expenses and all bills) will be between $1500 - $2500.

Trading style: I only trade very high probability setups with very tight stops and 60% of my trades are profitable...I may only trade 5 or 6 setups per day and usually can steal 50 to 300 ticks from the market (only equities).Losing days are usually small since I have predetermined daily stops, there are days I can't trade, because the market changed or behaves differently...Once I pull a few losers in a row (5 tick max drawdown - 10 for larger stocks such as AAPL RIMM POT or GS) I stop trading and watch the screen the rest of the day to figure out what isn't working and can usually readjust the next day...Most trades have an automated feel to them, all limit orders with stops, I only change stops to lock profits, never to allow a larger drawdown.I have found this system to be very profitable especially with ranging or high/low basing stocks...

I also like trading options and have a good understanding on how they work, typically swing trading and daytrading expiration week...Ran a test account a few months back from 100 to 450K in about 1 month carefully picking trades...

I know most will say that papertrading isn't the same, no emotions, better fills etc.The point is that I have the confidence that I can be profitable, and I play trades with no emotions, as they have predefined entry and exit levels.

I also had a test of emotions trading an options account for a friend multiple times in real life and still came out ahead, including a few dandies but also a few losses...Learned to pick my entries real good, because daytrading options if you don't get your entry right you may as well stay home...But due to risk management I will put options (futures as well) aside for now - equities offer a much safer (albeit less exciting) vehicle.(Like trading 10 GS contracts expiration week and seeing live p/l ranging from -$1,200.00/+$1,800.00 and finally getting out with a $1,300.00 gain, all in about 30 minutes - was last year, just starting out and wouldn't even dream of doing it today lol)...

I might add that I spend 10 to 12 hours a day studying the markets, love every minute of it...And working from home I had the luxury of being able to do this everyday since november.


-I am considering trading remote for a prop firm.
I did speak with three firms, CY, keystone and T3Live.
T3 is too expensive to get in at the moment, but would love to trade with those guys - they are very very good.

Have to dig a bit deeper on CY group - heard good things but have yet to ask details.5K gets you in.

Keystone, watched two webinars and traded emails back and forth - the guys seem transparent and knowledgeable - low commish and $250.00 per month all in.5K to get in training program included - heard good things about Erik and Peter the partners, this would be my top pick for now unless I find out that CY has something better cooking....

I know how prop firms are considered on this forum, there is a bit of a love/hate deal going on so please don't start flaming and if you know of any firms that accept remote traders or if you had an experience (good or bad) please let me know - pm is cool.

My question is this:

Considering all above, which path would you take?

1.Go to a prop, take training and deal with not making much for a while (until share size goes up) while still maintaining the income from the work at home deal.

2.Sit on my ass for another year or two and save enough to be able to fund a larger account (still going through prop for commish and leverage) with 25-30K and start trading then but with no training from someone that has been trading for years?
(and still keep the gig at home, as it is low maintenance and a steady source of cash flow)...And take the chance of trading really on my own with no training....

I feel that no matter how much i learn, and I learn every day, there is always plenty of details that make a difference, and those things can only be learned by watching the screen and being in trades...and getting shortcuts from successful traders.

How did some of you guys start?Fail?Become successful?

I'm not looking for all the answers on a silver platter, yet need help as I want to take this to the next level...I know this sounds like another noob looking to beat a long dead horse but everyone's situation is different...

I like challenges, have run 3 companies in a high stress industry,run a profitable business from home for now almost 3 years, played tons of sports and have been up to the task in many things I've tried - I usually start out shy and get better quickly - I know trading is different but it is another challenge and well...it's waiving at me...and quite frankly I could use additional income in the long run even if it's only $500-$1000/month...

So thanks to those who can throw in some insightful ideas or comments and if you have something negative to say go ahead just try to be intelligent and constructive about it!!
More...

Having day traded in the past (two months), I will share the following bits of advice:

- Do not expect to make money in the short-term to medium-term, and ensure that you have either savings or alternate income. This would apply to starting any form of self-employment.

- You will see many on these forums state that you require "x" amount of capital before even considering trading full-time. Some of those amounts are quite simply unrealistic for most people.

- As others have stated, do not expect to receive good training at a day trading firm (though it is possible of course that you might). Additionally, it is quite possible that those with influence in the firm might actually reduce your probability of success.

- It is easy to calculate a daily profit target, but much less easy to consistently hit that target every single day. Expect to have crappy days, marginal days, exceptional days.

- Start small, grow your confidence/knowledge, then grow your size.

- The ability to be dispassionate while trading is invaluable.

My first venture into day trading was relatively short, but extremely valuable. I concretely proved to myself that I have the aptitude for trading (I was profitable my very first month, and my profitability was growing with experience and size). In short, I now have the numbers to prove this aptitude.

My next venture into day trading will most likely require joining some form of professional firm (as opposed to retail), but that is not necessarily a negative. These types of firms exist to provide leverage for traders that cannot put together $50-100K+ to trade retail. There is also something to be said for the ability to start a business with a relatively small investment (e.g. initial deposit at a prop firm).

To summarize, I would encourage you to pursue trading if you are truly passionate about it, and would also caution you to ensure that you are adequately prepared before jumping into it on a full-time basis. Very few people have the right mix of attributes to be successful in the business.

Feel free to PM me if you would like to discuss any of this privately, I would be happy to share some insights.
 
You must log in or register to reply here.
Back
Top