Advice for a US Trader starting out?

D

djmastro

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Hello all!

Just ran into these forums last night, and I have to say I'm very impressed with what I've seen so far. However, it looks like everyone is from the UK here! Does anyone have any experience trading US, and if so, can you give me some advice on where to begin? If there is an area of the forums that defines the different types of trading, please point me in that direction too!

To give a bit of background on me - I've been interested in entering the market for about 6 years, but have never pursued it until now. I'm completely new and would love some tips on areas to get started learning about. I understand it takes at least a year of research and practice to become consistently profitable (or at least comfortable), and I'd love to make some professional relationships here to bounce ideas off of.

Thanks again all!

DJ
 
djmastro said:
What do you mean by that?
Click to expand...

Probably that if you want to save yourself endless grief, stress, an emotional rollercoaster and large initial losses then you shoudn't even start.

Actually depending on what you want to trade, the US market do have a number of advantages due to the large liquidity and choice of instruments. In addition where the US leads other markets tend to follow. I wish I could trade the US markets but my time zone doesn't permit that.

The single biggest piece of advice I would give is that there is no holy grail that is only available to the successful traders and institutions. Most profitable traders make their money from simple strategies but they execute those with great discipline and experience. They also understand the market conditions that those strategies work best under.

Even some long term posters on here seem to believe that there are almost mystical indicators that are only available to a few. its not the case.
 
Thanks for your insight, Shanghai.

As I said on another thread, I have more than half a brain and am willing to be a hungry student for as long as it takes to be consistently profitable with this. I am looking for financial freedom - I've run businesses and worked for others, but neither gave me the time and money. From what I've read so far, this has the ability to provide those results.
 
Good luck to you. But don't forget that the thing that destroys most traders is their emotions, not their intelect. That's the difference between trading and other businesses.
 
You can make money trading the US markets is you

(1) Have a good broker with low commissions
(2) Learn how to apply good risk management
(3) Develop and apply a realistic trading method

85% or more of traders lack one of the above. Easier said than done.

For risk management I recommend that you as a beginner not to risk more than 1% of your account value on each trade. This is a good article for beginners on this subject:

Fixed fraction position sizing

If you follow this simple risk management approach and you do not get irrational with your trading risking large amounts of money on each trade, you will be around long enough to learn how to trade effectively and develop a good methodology. It will not happen overnight.
 
Thanks for your input alexander!

I'm most interested in short to medium term trading. Do you have suggestions for good brokers or realistic trading methods I could start learning about?
 
djmastro said:
Hello all!

Just ran into these forums last night, and I have to say I'm very impressed with what I've seen so far. However, it looks like everyone is from the UK here! Does anyone have any experience trading US, and if so, can you give me some advice on where to begin? If there is an area of the forums that defines the different types of trading, please point me in that direction too!

To give a bit of background on me - I've been interested in entering the market for about 6 years, but have never pursued it until now. I'm completely new and would love some tips on areas to get started learning about. I understand it takes at least a year of research and practice to become consistently profitable (or at least comfortable), and I'd love to make some professional relationships here to bounce ideas off of.

Thanks again all!

DJ
Click to expand...


This will keep you busy for a while - ignore the private thread references since you will have enough info. on the free pages.
http://www.forexfactory.com/showthread.php?t=2331

A UK based trader blog:
http://www.forexfactory.com/showthread.php?t=221375

A short term trader thread:
http://www.forexfactory.com/showthread.php?t=163972

Read some TRADER DANTE threads

http://www.trade2win.com/boards/search.php?searchid=5272882

Another guy making his way:

http://www.trade2win.com/boards/trading-journals/88320-my-journal-prop-house.html

There are more on the T2W site but you have more than enough reading material to start your studies; Good luck:smart:
 
DJmastro, I'm a US trader, been doing so fulltime for a year now.

For a brokerage I would recommend Interactive Brokers. They are US based, quick execution, low commissions, and you can trade stocks as well as futures, forex, options, and about anything else you can think of.

My first question would be, what are you interested in trading (i.e. stocks, forex, etc)? At first I was all about stocks, but I have found knowing all of the markets is helpful and enjoyable.
 
Thanks for the info neil!

wh92stang - I like the idea of forex, but I would probably do stocks first... however, I don't know enough of either to make an educated decision at this point. Is it mostly up to my opinion?

I want to be mostly a short term trader, as I do not have the capital to invest at this point.

Does Interactive Brokers have a free live demo platform I can practice with?
 
I trade the US market daily. I am English living on the continent and have no problems with the US market. Time zone a bit of a pain, but I can get up late, or go skiing in the morning and work in the afternoon.

Can not complain.
 
djmastro said:
LoveToTrade - Thanks for replying!

What areas do you trade? Stocks, forex, etc?
Click to expand...

Stocks and Futures (Oil mostly).

I trade mostly lower priced stocks, NQ preferably, between 3 - 10 USD, quick momentum moves.

Use various sites for info, including ForexFactory.com for news (to keep me out at the related times), been into BonTrade.org for a long time and a few of the websites within it regarding stocks, use ThinkorSwim as my Broker. PDT rule is a pain in the ass, but I funded with more than 25k so got round that, trying mostly with Crude at the moment and doing pretty well.

Hated trading with UK Companies, hated the lack of information on UK stocks and hated getting ripped off by SB companies - With the right info there´s a lot of cream. Happy to reply mate. Good luck. (y)
 
Hello Dj and welcome.

Forex is a bad starting place in my opinion the swings are crazy and it will almost certainly tear you a new one within days without a really robust plan. You are at an exciting crossroads and you start from a totally level playing field with no notion here or there. Firstly don't look into any technical indicators or face a quick investment death.

My first punt was 100% of my money on a stock called AMD on the NYSE. MY buy in was at $2.00 pps (price per share) and why the buy in? I knew the company well and its products and I also knew that it wasn't going to go bankrupt (due to the monoploy issues with Intel) That little punt made me a fair few quid. I then increased my "knowledge" and learned about stochastics and RSI and then got owned accordingly.

So my advice is invest in areas that you know a lot about..this is your edge. And most importantly buy low and sell higher thats all you need to know. Look at price action on its own..sorry would type more but its late here and the missus is asleep.
 
Mr Flibble thank you for responding!

I would love to hear more beginning advice from you... especially since I do not know a whole lot about a certain company or sector to begin with!
 
Don´t want to be a killjoy at all towards Mr Fibble, but I wouldn´t recommend investing in anything long term. In and out, never hold over - But that´s just me. :)

Fundementally see people get screwed to the wall each and every day, but each to their own, works for a lot of people too...
 
Sure you do! Now what is was your job before? What are your interests. You must have one thing you love? For me it is IT. You can use that. Be very careful about divergence mentioned in a link from this thread the Jankone thread it uses RSI/Stochastics ir MACD a recipe for disaster in my opinion.

Heres what you can do..sit for a few hours and watch the Dow Jones price action. Watch it when the markets open and soon it will start to speak to you. Heres an example it rockets up at start then falls down then rockets up this time going even higher a nice bullish sign. Take the flip side it moves up slightly slowly then moves quickly down then moves up again this time it doesn't get quite so high before going even lower and their is a bullish sign. After a while you'll see what I mean. Now given that most US stocks by and large follow the DOW then you know what the motor behind these stocks is doing.

Find a method that suits you from good traders who don't blow their own trumpers Trader Dante is one. The whisper is louder than the shout in my opinion. Stay clear of fools who promise the world but rarely deliver.
 
Thanks again for your input Mr Flibble. I used to be a banker. I am more interested in short term trading - does your advice apply to that as well?
 
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