The Basics of Trading

This is a discussion on The Basics of Trading within the First Steps forums, part of the Reception category; Hi FTSEBeater Welcome back. Appreciate the effort that you are putting in. Along with others, I'm busy trying to look ...

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Old Mar 11, 2003, 10:03pm   #137
Joined Jan 2003
Hi FTSEBeater
Welcome back. Appreciate the effort that you are putting in.

Along with others, I'm busy trying to look at charts based on what we have gone through so far.

Looking forward, here are a couple of suggestions on the 'supporting cast' (by which I assume you mean 'indicators'):-

1. moving averages (advantages / disadvantages of SMA and EMA; what periods do you look at? 5 day, 10 day...200 day? Do you have a preferred moving average/combination and then cross reference with another one?)

2. MACD and Signal Line (as above; do you use 13 and 26 day or something else?)

3. RSI

4. Volume

Look forward to the next instalment

Cheers

SoldierofOne
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Old Mar 12, 2003, 1:06pm   #138
 
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FTSE Beater started this thread Hi all

Thank you for your suggestions.

Here's the plan for the weeks to come.

Time-frames
Pivot points
Supporting cast - MA's, MACD, RSI, CCI, Stochastics

In the mean time, if there is anything else you would like me to talk about then feel free to contact me.


Hi SoldierOfOne

I'm going to have to pass on doing something about Volume, because I have no idea how volume works, and how you can use it to trade.

Sorry
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Old Mar 12, 2003, 2:12pm   #139
 
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hi all#
I would appreciate if you would explain all the differentt indicators, I mean the ones you can really use for day to day analysis where it can help for decision making...
I feel there is so many, and to be honest in the level I am I know nobody use them all , you elect the ones you prefer according to your strategie, but anyway I am a bit lost which are the best , what they reaaly reflect, etc...
Thx!!!
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Old Mar 12, 2003, 6:07pm   #140
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Quote:
Originally posted by techcherry
hi all#
I would appreciate if you would explain all the differentt indicators, I mean the ones you can really use for day to day analysis where it can help for decision making...
I feel there is so many, and to be honest in the level I am I know nobody use them all , you elect the ones you prefer according to your strategie, but anyway I am a bit lost which are the best , what they reaaly reflect, etc...
Thx!!!
Why do you feel that you need to use indicators? learn how to use the price action first, then worry about indicators, you will soon find that they are a waste of time.
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Old Mar 12, 2003, 6:52pm   #141
 
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TBS (and any others who have heard me sound off about this)

Please don't take this as a criticism, just an observation.

Like TC and many other newbies I also would no doubt have eventually asked this question. And why not? There is lots of help around these boards (thankfully) BUT, as we keep hearing more experienced people say 'each to his own style of trading'.

So how does a beginner know where to go and what to read as there is very little direction?

Each experienced trader posting a suggestion to the beginner effectively starts the newbie (and probably several others) off on a new voyage of discovery. Sometimes only to discover that
Quote:
you will soon find that they are a waste of time
So, ... we ask away in innocence because (some of us) may not know what to ask or what we are asking IMVHO

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Old Mar 12, 2003, 7:36pm   #142
 
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Hi NastyItch,

TBS has a way of trading that doesn't use indicators that's all. It works for him. It doens't mean to say it would work for you too, you may not have capital or the risk tolerance he has.

Finding your own methods is part of the fun of this. Start by first deciding what sort of trading you want to do and then look at what others trading the same sorts of instruments use.

But ultimately you find your own path, one your are comfortable on.
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Old Mar 12, 2003, 7:55pm   #143
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Hi NI,

Firstly, apologies for sounding too high-handed, it wasn't intended.

The use of indicators is a personal thing - as Helen has said. BUT unless you have some decent knowledge of how the underlying price action works then I doubt if you would be able to get even close to being able to use an indicator correctly.

Unfortunately too many people decide that as soon as you mention 'TA' it is about the application of mathematical models across a set of price/time/volume data. It is not.

If you cannot trade from the price action alone you will have no chance with indicators. This is (supposedly) a beginners thread to start talking about indicators at this point is like trying to drive a high performance car the day after you pass your drivng test - destined for a big crash!

There is a completely natural cycle that all traders/wannabe traders go through. They start with simple, find it boring and then decide to add the racey bits. After changing the racey bits a few times - having lost cash on all of them, they give up - or go back to basics and learn what they missed out on in the first place.

Everyone goes through it - I'm certainly no exception, I spent a long tme messing about with all sorts of indicators - and you will too.

What should also be remembered is that every indicator itself is different, and that with most indicators the settings can be altered - these react differently to every product traded - down to individual stocks requiring completely different settings.

It is a mine field, without the basics, you are liable to lose a leg.
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Old Mar 12, 2003, 8:39pm   #144
 
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TBS and HQ

OK, so we all agree ' each to his/her ( ) own. I appreciate your comments re indicators.

The point you both may have missed is this.
As beginners it is difficult to know what advice/books/site references/...whatever to follow. There is so much advice on these boards (and others) given freely by well meaning people but no direction.

Let me give you an example of the sort of 'dilema!' I am in. As I am very new to trading (in general, not just TA) I am not sure of:
a) what I need to do this trading stuff?
b) the market I would trade in
c) the tools I would use
d) the knowledge (theoretical or practical) that I would need to gain
e) the techniques (strategy and trade plan stuff) I would have to put together
f) what trading platform do I need/want

This may be sounding as if I don't know nuffink about what I want. Not so (TBS you know I have help in the shape of a hairy relative ), but imagine a beginner who is thrown into all this trying to find the wherewithall to trade. You will probably get the point. I would like to investigate this trading thing, and particularly TA. From this I would like to make a reasonably informed decision re the above list to go about trading successfully with the right 'tools for the trade'

So as a newbie what are the basics and where to start?
a) what do I need to learn first
b) where would I go for these references/books etc
c) what comes next?
d) what do I need for the next step
and so on...


Sorry this has been a bit lengthy. I have been mailing several new starters who all seem to have this common 'problem'.

It is great that several experienced traders are willing to give their time and effort to help beginners, I am sure we are all very grateful. But we may need some guidance through this maze to start off with.

Hope this clarifies some of the needs out there.
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