Article Day Trading Rules for Rookies – Don’t Play it by Ear

T2W Bot

Staff member
Dec 19, 2004
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#1
The prospect of making quick money lures many to the world of day trading. The participants in this game, besides professional traders, can be retirees, executives, teachers, small business owners, housewives, etc. who try and make a fortune through their computer screens.  Remember, the profits which may draw you to day trading are virtual and it’s your trading style that can transform them into real gains–a daunting task, especially as a rookie.
There are rules for every game, even day trading! If you are a new player, it’s important that you are mindful of the basic set of rules. These rules are certainly not binding, but they can help you to make some crucial decisions and give broader guidelines.
1. Knowledge “Knowledge is power.” Knowledge here includes information about the basic trading procedures and tools, information about stocks you plan to trade (like company financials, reports and charts), knowing the latest in the stock markets, keeping track of events...
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#3
Here is my 2 cent.
You wish to day trade.. think twice!
How are you going to compete against people like me who has:
Bloomberg & Reuters Terminal in front of me and any tools necessary.
Bloom and reut messenger constantly on chat with other banks, funds. ( sharing information, rumors, flow etc...)

BY the time you find out what s going on in the market you will be on the wrong side of the market and on the other side of my deals
SO Before entering day trading think twice, perhaps it sould be easier to trade on a different time frame where the use of technology/information advantage is not so big.
 

NVP

Well-known member
Jun 21, 2004
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fxcorrelator.com
#4
this is indeed the message all wannbee scalper are told ..........don't mess with the big boys ...................fortunately theres still a few scalping crusts out there if you know what you are doing for the poor retail traders

N
 
Apr 22, 2014
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#5
I think it hugely unlikely systematicfx is one of 'the big boys'. Bloomberg & Reuters are dinosaurs. Money isn't made like that any more. Chat with other banks, funds LOL. For goodness sake.

Algos are making money based on microseconds delays in order transmissions. The skill is in the people who dream up and tweak the algos, not some guy sitting over terminals shouting buy and sell and 'chatting' with other banks and funds. The 80s image of top dog traders (red braces, cigars) easily lent itself to the 90s and noughties image of hedgies and FoF, but anyone up to speed on the current day mechanics of the market will be only too well aware that Hollywood is the only place that image still fits.

Anyonbe can pretend to be anything on the internet. And very few puddings ever get to prove themselves.
 
#6
I think it hugely unlikely systematicfx is one of 'the big boys'. Bloomberg & Reuters are dinosaurs. Money isn't made like that any more. Chat with other banks, funds LOL. For goodness sake.

Algos are making money based on microseconds delays in order transmissions. The skill is in the people who dream up and tweak the algos, not some guy sitting over terminals shouting buy and sell and 'chatting' with other banks and funds. The 80s image of top dog traders (red braces, cigars) easily lent itself to the 90s and noughties image of hedgies and FoF, but anyone up to speed on the current day mechanics of the market will be only too well aware that Hollywood is the only place that image still fits.

Anyonbe can pretend to be anything on the internet. And very few puddings ever get to prove themselves.
You should not judge people without knowing who they are. I feel a lot of frustration in your comments and anger. Try to manage your frustration and look at the positive side... You will get there, don't worry.
 
Likes: ffsear
Apr 22, 2014
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#7
You should not judge people without knowing who they are. I feel a lot of frustration in your comments and anger. Try to manage your frustration and look at the positive side... You will get there, don't worry.
That's the thing. We don't know who you are. In this medium you can only judge by the quality of what people say, not what they say. Yes there is a great deal of frustration and anger but predominately at the acres of BS evident on sites such as this. The people who ring true are an unfortunately miniscule minority, but the clarity, simplicity, honesty and integrity of what they say is self evident.

Among many of those who are keen to impress with coloured charts and diagrams and important sounding stuff that actually has no real relevance and an inability to answer the simplest questions, there is a discord and disharmony which is equally self-evident.

You don't know me so you have no idea if I'll get there or not. I know me quite well and my view is, I won't. But you are in no position to decide for me that I will or to presume I am worried. You need to attend to your own problems.
 

Dinos

Well-known member
Nov 10, 2003
4,112
713
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#9
Here is my 2 cent.
You wish to day trade.. think twice!
How are you going to compete against people like me who has:
Bloomberg & Reuters Terminal in front of me and any tools necessary.
Bloom and reut messenger constantly on chat with other banks, funds. ( sharing information, rumors, flow etc...)

BY the time you find out what s going on in the market you will be on the wrong side of the market and on the other side of my deals
SO Before entering day trading think twice, perhaps it sould be easier to trade on a different time frame where the use of technology/information advantage is not so big.
Completely disagree with you, I day trade and have done for over a decade without the need of Bloomberg or Reuters.

KISS and EASY without unnecessary clutter to "fuddle" the the brain, Price Action tells you all you need to know, all IMHO (y)
 
Dec 27, 2014
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#10
What does EASY stand for?

Completely disagree with you, I day trade and have done for over a decade without the need of Bloomberg or Reuters.

KISS and EASY without unnecessary clutter to "fuddle" the the brain, Price Action tells you all you need to know, all IMHO (y)
What do you mean by EASY? I know about keeping it simple. EASY I've never heard of. Thanks.
 
Jan 23, 2015
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#11
I been day trading since 1985, wow, just realized 30 years ago, hmmm lol, I think in all that time trading S&P futures, I have used the news twice. I am more of a scalper, but only trade first 90 minutes of day session, risk depends on size on range of one minute bars so if they bigger than 1.75 points, I have risk more than 2 points I normally risk and will go to 3 points if I have to, but then targets will be what I risk, if risk is over 3 points, I either won't take trade or wait for price to retrace so risk won't be greater than 3 points.

I don't ever have thought it was easy, but now I expect to do well in every trade and when I have losses look at it as more frustrating than anything else. I do average down on every trade, so my methods have been well tested and been doing approx. same method over a twenty years.

There are many problems younger traders have, understand what doesn't work, knowing that failed price pattern signals work better than many that do, but often it is they don't know where to start or what to look for as far as knowing difference of chop and trend. Most too concerned on where to get in and never enough time in what to do after one is in, that is where the 99% of work needs to be placed. Many beginners and medium traders don't break down swing lengths, in other words what part of the complete normal trend swing(from lowest pivot low to highest pivot high of one trend), if on average, last forty trading days, normal swing during morning session is 12 points, where are they entering and how much left till reverse is expected. This way if too close to the top, might want to not do trade or have quicker target of one bar, it either takes off or get out with a tick or two.

Really need to put in the 10,000 hours of screen time to get good idea of what works well. But think first of doing long term trading first, much more money in it, as what most burns out starting out day traders is slippage and commissions, so 10 trades and that like giving up a ES point. and you can learn slowly in long term, whereas in day trading have to learn to make second decisions.
 
Dec 13, 2007
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#12
Crappiest advice ever .... lady are you even a suceesful trader?

Crappiest advice ever .... lady are you even a suceesful trader?