Re: Where do I start?
Get an account at a reputable broker like IB or Optionsxpress which is what I use. Start with ten grand and trade futures. Start by following the ES, TF and NQ. Start with one contract at a time. Learn all you can about supply and demand levels and mark them on your charts. Add the 50 and 200 day EMAs and parabolic SAR for a visual cue. Use MACD and Stochastics for divergence and cross overs. Stock settings on Macd and 10,3, 3 on Stoch. You are looking for two kinds of signals. TCOs and Confirmations. TCOs are Trend change origins..aka bottoms or tops. Confirms are higher lows in an uptrend or lower highs in a downtrend. The signal either is or is not what it appears to be...let the market tell you. It will either turn out to be what it appears or it won't. If for example you have a potential bottom, with a nice distance to the 50 EMA (what I call a cushion)and the price action starts to roll over but fails and puts in a nice bullish engulfing candle then you may have a buy. If it rolls over and breaks the recent low and the next demand level is ten points down, then you may have a sell. The factors you want to study to make this determination are: Is price at Supply or Demand? Is there divergence on the oscillators? Has price recently broken the nearest EMA or Zone? Is there a cushion to nearest average or Zone? If it looks good then enter. The nature of the game is this: You will never know with absolute certainty if any given signal will or will not work...the best you can do is stack the odds heavily in your favor, cut any losses off immediately and let the market tell you when to get out. This maximizes profit potential and minimizes risk. I use one minute candles for pinpoint accuracy and they expose the most clues if you know what you are doing. Put in as much screen time as you can while following the above...given enough time...trading will actually become easy. |