What to trade?

I'm new to the forum but not a complete noob (slighty above novice). I working on building up capital in order to get really serious in the market...I've been reading different thread trying to catch up on things I may not know...

The goal is to build 10,000 dollars in capital before I invest. I've read 3 books on the stock market but I am open to others as well...

This is a question for those who consistently trade and for the most part consistently profit (idk amount). Before I began studying I want to have a clear focused idea on the most important elements. IE what should I trade? I understand stocks and the principles behind the market, however I want to know what you guys trade...I will study only the most profitable (risky) markets. I want to master one concept...I sometimes feel lost in trying to figure out where to start without becoming to scattered and learning a little of everything....So what do the most successful people here trade and where should I begin?

(ps no sarcasm please...I see that alot when someone asks a question)

Have you sorted out the timeframe you will trade in yet? That's a first start to picking a market.

futures are the way to go. PROVIDED YOU LEARN FIRST!

To rhody thanks for the reply, I plan on day trading (not scalping) but entering and exiting positions in the same day....most likely from 8:30 to 3:00... I've been interested in futures as well, any book recommendations? BTW what do you trade Rhody?

JX1234567891 said:

To rhody thanks for the reply, I plan on day trading (not scalping) but entering and exiting positions in the same day....most likely from 8:30 to 3:00... I've been interested in futures as well, any book recommendations? BTW what do you trade Rhody?

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If you're doing 8:30-3:00 then that's an ideal futures timeframe since much of that market operates on that kind of pit session schedule, though forex also fits in there pretty well.

My trading over the years has been mainly focused in forex, index futures, and stocks.

Thanks I'm trying to get a focused direction before I start buying more books and involving myself...Are futures the most risky (profitable) market or stocks. I want to make money but I need to have a focused direction so I can become a disciplined investor. I want to pick one market and really try to master it, instead of being scattered around...However I dont want to get into, lets say, stocks and really educate myself and then find out futures traders make triple what a good stock trader makes...

Hi JX1234567891,

You say you want to be an investor, but close out trades within one session. That would put you in the category of trader - an investor requires an entirely different skill set. I would like to recommend you read Trading For A Living or Come Into My Trading Room by Dr. Alexander Elder and Mark Douglas' books Trading in The Zone and the The Disciplined Trader. There are many many many good reads out there but these books are regarded by many in the trading community as required reading. Elder's books are not specific to any one market and will answer your question on which markets to trade. Douglas' books will make you aware of the obstacles that you must overcome to become a successful trader. Both will improve your chances of survival and are worth the investment.

One piece of advice I could offer is don't focus on what others are making in their respective markets, try to "mind your own business", because if you're going to make any money you will have to find your own niche.

thanks adrian....slip of the lingo....From what I can collect, investing usually takes large amounts of money and alot of time (both of which I don't have)....I meant trader...Also I've noticed that Trading for A Living Book come up alot...I think I'll swing by Barnes and Nobles to see if they have it....If not I'll Amazon it. Also when I become more comfortable with trader jargon I'd like to speak to members here who have had considerable success. I can't go it alone, but I'll wait to ask more serious questions..

Just to save you some time (and gas), T4L is out of print and I believe it only comes in hard copy. Which means it wont be at Barnes and Noble (that's where I went first and they told me they don't carry it in store). So yeah try Amazon, that's where I picked up my copy. Best of luck and it will all come with time.

JX1234567891 said:

Are futures the most risky (profitable) market or stocks.

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There really is no such thing as a more or less profitable market. Profitability is more determined my how much risk a person is willing to take and the type of strategy them employ - not the market they trade. The most profitable market for you is the one you are most comfortable trading.

The perception of futures being more risky is a function of leverage, but leverage is a relative thing.

Good luck. I agree with the John Forman so I won't repeat. Just one comment. Please don't make the mistake some, if not many, of us made and learned the importance of risk management through risking real money. Try to study risk management before you start trading and possibly through a paper account.

Alex

as a general rule if you can't blow your account in one day then the market isn't profitable enough