Essentials Of 'New to Trading'

This is a discussion on Essentials Of 'New to Trading' within the First Steps forums, part of the Reception category; Hi Thanks for your post, which company do you use for spread betting and would you recommend them. Thanks...

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Old Jul 7, 2012, 7:42am   #25
 
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Re: Essentials Of 'First Steps'

Hi

Thanks for your post, which company do you use for spread betting and would you recommend them.

Thanks

Last edited by timsk; Sep 17, 2012 at 4:00pm. Reason: Deleted quoted post
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Old Jul 19, 2012, 7:05pm   #26
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Re: Essentials Of 'First Steps'

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Quote:
Originally Posted by mamcm View Post
Thanks for your post, which company do you use for spread betting and would you recommend them.
Hi mamcm,
I've had an account with ETX Capital for years - but I rarely use it. If I was looking from scratch I'd consider as many of the major players as possible. This FAQ will help to point you in the right direction in terms of what to look for: Can You Recommend a Data Feed, Charting Software & Broker?
Enjoy!
Tim.
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Old Jul 31, 2012, 1:42pm   #27
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Re: Essentials Of 'First Steps'

For new Traders:
1. The most important aspect of Trading is understanding your own Personal Psychology. This will wash over you until the pressure of seeking to trade properly from the series of losses you will incur will force you to visit this area again in more depth. Then you will understand the battle isnt with anyone else, its with yourself and how disciplined you must be to trade properly.
2. The nest issue which sets good traders from bad traders is that good traders begin with a plan. If you are not trading from a plan which details everything about how you will trade in the market and the strategies you will use for each market condition, then youre not ready yet to trade profitably CONSISTENTLY. But its always a good thing to trade a little so you understand where the books are coming from
3. You are going to read more information than many individuals do who take degrees. Dont kid yourself here, its relentless and most great traders will blow thier accounts completely at least once in a 3-8 year journey trying to trade properly. Many wont make it because they run out of money/ think that they can shorcut the learning/ think they dont need to read that much/ or do not accept properly that the real issue is about themselves NOT the market.
4. Scalping as a method for Newbies to begin trading is often the culprit which sets in bad habits about understanding how best to trade. Avoid it as a beginner despite the calls of many to use it as a begginers strategy especially from those who make profit from your losses like Spreadbetting forms.
5. Spreadbetting is not a Newbie tool.. Its actually a sophisticated tool with less critical data (volume) for you to use AND the margins are often set poorly and if you are scalping using them you are actually at a disadvantage. Forget the issue of taxes your not coming to the market new to make millions free of txes. This is a consideration only when youre consistently profitable and the truth is that is likely to be at least 2 years away MINIMUM.

Trading is as sophisticated as surgery, flying jet planes, not neccesartily in the factual understanding required but actually in the way you as a person are able to stick to your goals and remain consistently self analytical in a quest to better yourself and control yourself. That is the key.

Lastly if your emotions are up and down.. your trading isnt right. Trading isnt an emotional game. Losses are a part of the game. You will never know what will happen next, stop trying to predict it. Youre goal is to use PROBABILITY in your thinking, to plan your trade, place the trade and accept whatever happens. If you know you will not accurately predict any market you will PROTECT yourself. When you do this whole thing right, you will realise the emphasis ISNT ON PROFIT. The emphasis is on NOT lossing too much every trade. when you do that profits suddenly happen to you.

The last and most critical piece in the jigsaw puzzle is then to LET YOUR PROFITS RUN. No trading works unless you actively allow profit to keep accruing when youre in a winning situation. If you jump out of a trade to secure the profit too early this indicates your psychology isnt right and eventually what youre doing is cutting your chance of winning in this game.

Trading is the HARDEST WAY to make an EAY LIVING. Those poor at learning, not willing to work day and night reading, those who are bad at self discipline will likely not succeed... that is why its impossible these days to get a trading post without an MBA or post graduate education. These are the people youre competing with. To compete against them you need to be willing to study hard and control your impulses. Start with Psychology and trade planning and keep focused on these two aspects as you go beyond all other aspects. Indicators are secondary. If this sounds daunting to you I advise you not to trade. If this sounds challenging to you and youre not put off. Good luck to you. Welcome to the lions den.
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Old Oct 10, 2012, 11:46am   #28
 
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Joined Oct 2012
Re: Essentials Of 'First Steps'

hello,

Firstly , I apologize because mu English not good

I want to know somethings


What is the minimum to open an account on American exchanges ?

If I bought a stock today , How many days I have to be patient in order to be executed sales ? I mean ( T + ... ?? )

I heard before that I can avoid that problem, through opening an account worth $ 25,000, is this true?
If it's true and opened the first order with the account and lost $ 1,000 and the account value became 24000$ . does it mean that I went back to the same problem again?

Is there brokers provide leverage on stocks? What are this brokers ?
and How this Leverages ( 1:2 or 1 : 30 or 1: 100 or ... or what )

Sorry for the inconvenience
Thanks all
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Old Nov 22, 2012, 3:18pm   #29
Joined Apr 2011
Re: Essentials Of 'First Steps'

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Discipline my self to follow only my method , cut my losses fast,admit I am wrong and my mistake ,keep losses small ,never add to a losing position,trade like a pro,there will be other better opportunities .Be nice to everybody , life is short.
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Old Nov 26, 2012, 7:16pm   #30
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Re: Essentials Of 'First Steps'

timsk started this thread
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Originally Posted by hmaster101 View Post
Hey am new here but was just wondering where I am wrong on this strategy. Find a big market/share moving event. Put £50 on short shares with a stop loss of -3% and put £50 on long shares with a stop loss of -3%. Then when the share moves 10% u make 10% on the long shares and -3% on the short shares = Profit of 7%
Thks guys!
Hi hmaster101,
If you're talking about buying and selling the same stock, you'll need two accounts and you'll be paying the spread twice. You may be using a different broker and/or trading platform, so it's unlikely that you'll be filled at the best prices on both legs of the trade. The losing leg is stopped out at -3% and, at that moment, in theory you'll be up +3% on the other leg, less the spread x2, commissions and possible slippage. Who's to say the winning leg is going to continue in the same direction to give you your +10% profit? It could happen, equally it could just as easily reverse and your net position across both legs will be in negative territory.

Having said all of the above, going long one instrument and short another highly correlated one is a well established strategy with lots to recommend it. Search for 'spread Trading' or 'Pairs Trading' in the Articles section of the site to find out more.
Tim.
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The Trading Plan Template - a must read for anyone without a proper TRADING PLAN
Please note: I am part of T2W Admin' Staff - I am NOT a Moderator!
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Old Nov 26, 2012, 10:48pm   #31
 
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Re: Essentials Of 'First Steps'

Thks so much for the information really appreciate your time would spread betting help reduce the commission? could it work maybe a couple times a year on the big events?
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Old Nov 27, 2012, 9:32am   #32
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Re: Essentials Of 'First Steps'

timsk started this thread Hi hmaster101,
Quote:
Originally Posted by hmaster101 View Post
. . .would spread betting help reduce the commission?
Yes and no! You won't have the formal commission charge that you'd have with a direct market access broker (DMA) - but you will have a wider spread. Whichever way you cut it - you end up paying one way or the other. And the spreads can be very wide indeed with some SB companies, such that the cost of trading with them could be higher than it would be trading via DMA.

It's hard to give a definitive answer because it depends on the broker, the instruments traded (a relatively small thinly traded company will have a much wider spread than a company like Microsoft for example), the time of day and the timeframe of the trade etc.

Quote:
Originally Posted by hmaster101 View Post
could it work maybe a couple times a year on the big events?
Yes, it could. However, if you trade it based solely on the information you've provided here, if it 'works', it will be the result of good fortune rather than skill and judgement. In other words, the next time you try it - it might not work. As it stands, it's not a complete strategy; it's a hypothesis around which a strategy could be built. If it's forward tested and produces a positive expectancy then, at that point, you may have a tradeable, potentially profitable strategy.
Tim.
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I'm New To T2W - Where Do I Start? - a must read for anyone new to T2W
I'm New To TRADING – Where Do I Start? - a must read for anyone new to TRADING
The Trading Plan Template - a must read for anyone without a proper TRADING PLAN
Please note: I am part of T2W Admin' Staff - I am NOT a Moderator!
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