a beginner wants to make it - some strategies that I am trying

d0n · Jan 6, 2012

Hi everybody,
first of all, I am fascinated by the world of trading. I see a lot of potential there. I've never been the kind of person who would think that a 9-5 job is the way to live well.

I would like to ask for advice on how to become successful.

I am part of a little commodities trading group, where two succesfull mentors are teaching their strategy. It seems to be a great working strategy, but the problem is that the specific occasion occurs only 2-4 a week. (it is a special kind of bar, specific point on the CCI, eventually the MACD). It is very difficult to be watching the graphs for several hours a day and wait for it to occur only 2x a week and thus makes it actually quite difficult. I would like something that I can do more actively, rather than be the hunter who waits for his prey for hours/days. Also, I understand that the commodities market can be riskier for a beginner. (even though I only try to start with eminis).

I am also curious to start with stocks now.
I talked to a good trader who recommended me that I could start with two things,1. look at the stocks in let's say NASDAQ that do the best or the worst in the first 4 minutes after the market opens. They should gain or lose at least 4%, then either buy or sell them and hold them for a few hours. Do this with 2-3 stocks.

2. use a slow stochastic (80 and 20), 3 MAs (20, 50, 200) and based on those enter trades. If the stochastic is over 80 then sell, if under 20 then buy. Also based on the 20 and 50 MAs to cross and follow the trend by the 200 one.

Does any of this have sense? would anyone improve that?
Where do I find good live stocks chart data for free to start with?
How do I find a working strategy for myself in the neverending amount of information that there is out there?

I plan to start with approx. 2000-3000 USD.
I have read most of the FAQs and would love to have some advice to these specific trading strategies.

Thanks for the help.

trader_dante · Jan 9, 2012

d0n said:
Hi everybody,
first of all, I am fascinated by the world of trading. I see a lot of potential there. I've never been the kind of person who would think that a 9-5 job is the way to live well.

I would like to ask for advice on how to become successful.

I am part of a little commodities trading group, where two succesfull mentors are teaching their strategy. It seems to be a great working strategy, but the problem is that the specific occasion occurs only 2-4 a week. (it is a special kind of bar, specific point on the CCI, eventually the MACD). It is very difficult to be watching the graphs for several hours a day and wait for it to occur only 2x a week and thus makes it actually quite difficult. I would like something that I can do more actively, rather than be the hunter who waits for his prey for hours/days. Also, I understand that the commodities market can be riskier for a beginner. (even though I only try to start with eminis).

I am also curious to start with stocks now.
I talked to a good trader who recommended me that I could start with two things,1. look at the stocks in let's say NASDAQ that do the best or the worst in the first 4 minutes after the market opens. They should gain or lose at least 4%, then either buy or sell them and hold them for a few hours. Do this with 2-3 stocks.

2. use a slow stochastic (80 and 20), 3 MAs (20, 50, 200) and based on those enter trades. If the stochastic is over 80 then sell, if under 20 then buy. Also based on the 20 and 50 MAs to cross and follow the trend by the 200 one.

Does any of this have sense? would anyone improve that?
Where do I find good live stocks chart data for free to start with?
How do I find a working strategy for myself in the neverending amount of information that there is out there?

I plan to start with approx. 2000-3000 USD.
I have read most of the FAQs and would love to have some advice to these specific trading strategies.

Thanks for the help.

Sorry to be a killjoy but I wouldn't suggest you try either of those strategies. Buying a stock on the open when its up 4% already and just "holding it for a few hours" sounds far too simplistic. The Stochastic setup almost certainly won't work for the same reason. The EMA setup might do better (and I mean "might") over a long period of time but you'd better be very comfortable with losing cycles in trendless markets.

Most MT4 brokers now provide live data on stocks. I use FxPro which lists most of the Dow30 for example.

There are plenty of strategies on these forums if you look around. Make sure you give each one enough time and test it thoroughly before you move onto the next or you will never get anywhere, I promise you.

deebee1 · Jan 9, 2012

hmmmmm....

anley · Jan 9, 2012

d0n said:
but the problem is that the specific occasion occurs only 2-4 a week. (it is a special kind of bar, specific point on the CCI, eventually the MACD). It is very difficult to be watching the graphs for several hours a day and wait for it to occur only 2x a week and thus makes it actually quite difficult.

But that's an edge right there.

Most can't wait, most want action all the time, most want to make money every day and think it's pointless waiting days or even weeks for a great setup..........

Hotch · Jan 9, 2012

I'd honestly suggest opening a demo account, going to the systems section of forexfactory, and pick a strategy out, try it and see what happens over 100 trades.

If you're happy with the performance, I'd suggest opening a small account and trading minimum stakes and increase slowly as your confidence increases.

If you're not happy, but it has potential, can stick with it, maybe tweak it, until you're happy.

If it's performed really poorly, and you see no potential, try something else and start over again.

Of course, all the while you should be reading as much as possible, but taking it all with a healthy dose of skepticism.

Shakone · Jan 9, 2012

d0n said:
Hi everybody,
first of all, I am fascinated by the world of trading. I see a lot of potential there. I've never been the kind of person who would think that a 9-5 job is the way to live well.

I would like to ask for advice on how to become successful.

I am part of a little commodities trading group, where two succesfull mentors are teaching their strategy. It seems to be a great working strategy, but the problem is that the specific occasion occurs only 2-4 a week. (it is a special kind of bar, specific point on the CCI, eventually the MACD). It is very difficult to be watching the graphs for several hours a day and wait for it to occur only 2x a week and thus makes it actually quite difficult. I would like something that I can do more actively, rather than be the hunter who waits for his prey for hours/days. Also, I understand that the commodities market can be riskier for a beginner. (even though I only try to start with eminis).

I am also curious to start with stocks now.
I talked to a good trader who recommended me that I could start with two things,1. look at the stocks in let's say NASDAQ that do the best or the worst in the first 4 minutes after the market opens. They should gain or lose at least 4%, then either buy or sell them and hold them for a few hours. Do this with 2-3 stocks.

2. use a slow stochastic (80 and 20), 3 MAs (20, 50, 200) and based on those enter trades. If the stochastic is over 80 then sell, if under 20 then buy. Also based on the 20 and 50 MAs to cross and follow the trend by the 200 one.

Does any of this have sense? would anyone improve that?
Where do I find good live stocks chart data for free to start with?
How do I find a working strategy for myself in the neverending amount of information that there is out there?

I plan to start with approx. 2000-3000 USD.
I have read most of the FAQs and would love to have some advice to these specific trading strategies.

Thanks for the help.

If you don't believe in 9-5 or having to work more hours than that, then forget trading. It's hard work. I don't know anyone successful in anything who either hasn't already done plenty of 9-5, or usually does much more work than that.

You can make money using a stochastic, but stochastic will not help you make money. You'd do better to forget that.

donbright · Jan 9, 2012

d0n said:
Hi everybody,
first of all, I am fascinated by the world of trading. I see a lot of potential there. I've never been the kind of person who would think that a 9-5 job is the way to live well.

I would like to ask for advice on how to become successful.

I am part of a little commodities trading group, where two succesfull mentors are teaching their strategy. It seems to be a great working strategy, but the problem is that the specific occasion occurs only 2-4 a week. (it is a special kind of bar, specific point on the CCI, eventually the MACD). It is very difficult to be watching the graphs for several hours a day and wait for it to occur only 2x a week and thus makes it actually quite difficult. I would like something that I can do more actively, rather than be the hunter who waits for his prey for hours/days. Also, I understand that the commodities market can be riskier for a beginner. (even though I only try to start with eminis).

I am also curious to start with stocks now.
I talked to a good trader who recommended me that I could start with two things,1. look at the stocks in let's say NASDAQ that do the best or the worst in the first 4 minutes after the market opens. They should gain or lose at least 4%, then either buy or sell them and hold them for a few hours. Do this with 2-3 stocks.

2. use a slow stochastic (80 and 20), 3 MAs (20, 50, 200) and based on those enter trades. If the stochastic is over 80 then sell, if under 20 then buy. Also based on the 20 and 50 MAs to cross and follow the trend by the 200 one.

Does any of this have sense? would anyone improve that?
Where do I find good live stocks chart data for free to start with?
How do I find a working strategy for myself in the neverending amount of information that there is out there?

I plan to start with approx. 2000-3000 USD.
I have read most of the FAQs and would love to have some advice to these specific trading strategies.

Thanks for the help.

We start our people with training in market mechanics, and just plain "how things work." For example, we don't wait for the stock to open, we place "opening only orders" based on certain criteria, for maybe 40 stocks....buys and short sales. Perhaps only 4 or 5 will gap far enough for us to be filled (and, we are filled on the same side as the NYSE specialist-only works on NYSE - and they have been making money doing this gap play for generations). We wait a few seconds, maybe a few minutes and cover the position. We take advantage of the gap, the "over -exuberance" if you will. I started doing this in1979, still works... takes some tweaking these days. If you want to know more, let me know.

Don Bright

timsk · Jan 9, 2012

donbright said:
If you want to know more, let me know.

Hi Don,
If you've been doing something for over 30 years that's consistently made money - then that's the kind of info' that T2W members would like to know more about. So, please start a thread detailing how you do it.
Tim.

d0n · Jan 11, 2012

thanks everybody for all the help and suggestions!
yes, donbright, I would definitely like to know more..

Shakone:
well it was not meant to only use the stochastic, but also the 3 MAs..

Bint_Crusher · Jan 14, 2012

Forget stochastics and CCI as primary tools. concentrate on price action. Plan to take your trades when supply/demand is out of balance, mark those ares on a chart, setup a mobile app to alert you as soon as the price enters that area then and only then apply your stoch and cci indicators. If it is your trade plan to execute when CCI moves from oversolt to crossing the -100 line then take that trade. et al.
The reason that this will only occur once or twice per week is not down to the indicators, it is down to the volume of buyers and sellers. Focus upon them and not upon some crossover strategy.

a beginner wants to make it - some strategies that I am trying

d0n

Newbie

trader_dante

Veteren member

deebee1

Well-known member

anley

Senior member

Hotch

Experienced member

Shakone

Senior member

donbright

Newbie

timsk

Legendary member

d0n

Newbie

Bint_Crusher

Established member

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