Finding my niche in trading

[geraldgigerl]

what am i doing best?
hopefully this will get an interesting discussion with many recommendations and replies.

I asked myself tons of question where i am good at and what im doing best but im still searching for the right profession/answer.
In the last weeks i started reading an amazing book its called; inhancing trader performance and it gives me a new point of view where i should ask myself what to do/what profession i could perform best.

I used to put all my effort in poker but after 3 years i noticed that its simply not what i wanna do for my living and it doesnt make me to happy. Obviously i couldnt handle big looses over a particular period.

Im looking for something that i can perform everywhere in the world and it should match to my strengths.
I would gladly investe something around 10-15 hours at first into trading and later maybe more but this is depending on how im running and if its alright to me.
By the way im not willing putting much money into this business im more focused in making good decesions and learning.

My strengths are/what i like doing:

-working on computer
-enjoy reading, exploring new topics
-im easily capable adapting to new things
-risk neutral
-im introverted
-i love working by my one and working systemathical and im always planing things/new challenges

My weaknesses:
-indirekt while speaking with other people/i prefer keeping things by myself and thinking a lot before telling my opinon
-im taking things often to serious
-im a very emotional guy

Im looking forward discussing this topic.

Dont mind contacting me via email.
Thanks in advance.

Gerald

 

[spreader_legger]

Given your reluctance to handle a large string of losses, I would look to develop an approach with high positive expectancy. For many trend following systems, for example, you may need to incur successive losses before hitting a big home run.

Limiting the amount of money you are willing to put down whilst learning this business is very sensible IMO. In any case learning to trade should not be taken lightly, you will need the utmost commitment to succeed .... for some it even take years!

 

[geraldgigerl]

thanks for your reply and i realize your point of view. Im actually not a huge fan of big swings because im a person who cant handle big swings easily. As stated im a newbie and i have no clue about trading and im definitely here to learn.

I do have the willpower to put in all my effort provided its the correct thing for me. You are right im rather looking for a business with small swings and and small-large wins. At the moment im working on my selling performance (im trying myself as a member of vemma). Though im not quite sure if its the right thing for me because most contacts usually are created personally and not online.

What i meant is that i havent got capital that i could put in the business. I do have capital but im investing it for buying books, studying etc... If im serious about something im looking for a learning process that will teach me the best performance available.

Have you got any suggestions what i could start with?

 

[charliechan]

if youre very emotional - stay away from day trading and think of longer term trades.

if youre risk neutral - consider futures calendar spreads

 

[spreader_legger]

In terms of books there are many, I have read some as background to my trading. Market Wizards, Pit Bull - Marty Schwartz, Way of the Turtle - Curtis Faith, Mind over Markets, Kaufman's books on technical analysis & systems to mention but a few. Although useful, they are only likely to constitute a general overview of what is involved. Essentially, you will need to develop your own style and approach.

I suggest you open a demo account (Alpari, FXPro, Oanda etc.) and get practicing! This way you can obtain Screen time and try new things out without spunking too much cash. Then once you start becoming consistent, you may wish to consider a Micro account and practice your psychology.

A good starting point (& I wish I came across this thread sooner) is the James16 thread in Forex Factory. When applied correctly, his system should generate high positive expectancy and limit overall drawdowns.



Hope this helps,


Stefan

 

[geraldgigerl]

this sounds like great advice to me thank you sir. I believe that there are tons of valuable books out there which you should read to improve your skills and to get more expertise.
Right now im reading a book and i wont start reading another at the same till i havent finished this book.

Honestly i have really no clue what you mean with this demo account, could you give me an introduction? What does this tell me about my skills or better said whats the programm for?

gerald

 

[spreader_legger]

A demo account is like a simulation (pilots for instance often practice on a simulator before actually flying for real). It is not going to be exactly the same as trading for real (with a real account you may get slight delays before your order is executed + you may get some slippage) .... it does however give you a good indication whether the approach you are using may prove promising once you go live.

Do note that trading is 90% psychological. Consequently, just because you are successful on demo, doesn't mean you will automatically be successful live. It is however highly unlikely that you will be successful live if you can't be profitable whilst on demo.

Most brokers provide free demo accounts ... such as Alpari, Oanda etc. Just google Alpari MT4 etc. & you should be able to sort it from there.

 

[geraldgigerl]

i have just downloaded alpari MT4 and i have really no idea where to start. It looks a bit confusing at first if you havent got much clue what u see hehe.

Where should i start?

 

[spreader_legger]

MT4 has quite a lot of functionality, some of which I am probably unfamiliar with aswell.
Try putting some charts up ( file, new chart, then you have an option of currency pairs) If you want to try out other stuff such as CFD's, gold etc. you could download FXPro.

You just need to play around with it a little bit & I'm sure you'll figure it out. You will find a lot more information regarding MT4 within this forum. I think that baby pips (or something like that) do an overall introduction to trading. I've never tried it so I don't know, but some of the guys in here have recommended it in the past.

You should also learn a bit about technical and fundamental analysis (most short-term traders & guys in this forum rely on technicals to time their entries & exits). I'm not kidding when I say that there is a lot to learn!

 

[geraldgigerl]

hmm as you may already know im completely new to trading and its not easy at the beginning to figure everything out by yourself i guess.

Undoubtful im pretty interested what this new topic belongs but im a guy who prefers a school enrolment because i love learning from advanced and competent guys.

I totally believe that theres so much to learn about trading that nobody could know everything. Perhabs you are right that it also makes sense to try it by yourself. What im seriously asking for is how does this system actually work? What i know is that it showes you the changing/current currency rates and changes. Im not familiar with it but im curious learning more about it for sure.

I have tons of question and i dont know where to start. What kind of trading is that actually? Do you think this matches my strengths? Do i need capital for this specific kind of trading?

 

[spreader_legger]

In essence your trading journey is going to be a very individual process ... but this should be obvious, after all we are all different! What works for one person may not work for another.
If you like the formalised process of learning in a classroom setting then great! Be warned however, many charge a hefty fee ($000's) for stuff that can be freely obtained from the internet.

As for using MT4, Have you managed to get any charts up? On my terminal, I also have Market watch & navigator up. If you want to make a trade, double click one of the symbols in the market watch window, a pop up window will appear allowing you to buy or sell .... the difference in price is known as the spread. You can also adjust volume, program in a target or a stop (level at which you want to get out of the trade when it goes against you) but for now, you may want to keep to the basics.

You will be able to monitor your trades by using the Trade Terminal (will appear at the bottom). Your entry price will usually be marked on the chart by a dotted line. If you want to exit a trade, double click the order number on the trade terminal, you can then close the order on the pop up window at the prevailing price.

I am sure I missed sh*t loads out, but this should give you a start.

Note, I am not the most savvy of system users & have learnt how to use MT4 through trial and error myself.

As for what kind of trading this is .... that is entirely up to you. It could be short-term scalping, or you may wish to look to hold trades for longer (over a day, week, month or for ever). You will find on your charts that you could adjust for the period, so that each bar can represent a minute, hour, day week etc. Do note that the longer the time frame the better your capitalisation should be ---- this should compensate for increased risk of volatility & possibility that the trade can go against you.

You can limit your risk by limiting your position size to 1 lot 0.1 lots (known as a mini) or even 0.01 (micro). As noted by Charliechan, you may choose to start with longer time frames (less emotion, more time to think etc .... but you will need to keep your size correspondingly smaller) As a rule of thumb you should risk no more than 1% of your capital on any one trade, this way you will be able to keep your emotions in check.

Hope this helps

 

[spreader_legger]

I forgot to mention, it is probably a good idea to have the chart of the instrument (symbol) you're trading before executing the trade. (Don't worry, all of this will become second nature to you once you start)

 

[geraldgigerl]

I have really not much clue what you told me there but it seems to be informative. However i will try it out soon and will report you hows it going.

Well if one teaching hour would cost that much im not going to take any. What i have already saw yesterday is that this programm offers some kind of index where u can look up every single point. Do you think its useful to read it through?

Till than and thanks for the many great advice u gave me i appreciate it pretty much.

Gerald

 

[Vaco]

Gerald,

If you don't mind me saying I get the impression that you are not really interested in the financial markets.

More likely you have heard that it is possible to make a great deal of money trading and so wish to learn how?

Was it a simmilar story with your poker adventure?

The truth be told with no interest in the financial markets you will find the learning curve very difficult.

I could be wrong about you and your lack of interest/excitement about the markets may even prove to be a benefit when trading.

Trading is very different to poker in that with poker the game is very beatable at low to mid stakes as there are more fish at these levels.

Trading offers no such luxury you will be plaing in the same arena as the pro's and veterens from the get go.

 

[geraldgigerl]

hello vaco,

Of course i heard that there are many possibilities to make big money but this isnt what im amaining for. Generally i cant say if im interested in it or not because i didnt try it yet and i have no clue whats it about and what it takes to earn money.
Im not looking to get rich with it im just looking for a hobby at first which should make fun.
You are right what you said about poker i was fixated to make big money but this was the wrong attitude. I didnt enjoy playing poker after a while (actually i enjoyed winning more and i hated loosing overall).

Im searching for a business where isnt as much luck involved as in poker in the short term. It should be something that makes me happy and matches to my strengths.

have u got some ideas?

 

[Vaco]

the luck element in poker is very similar in trading.

In poker you play a certain way which has shown gives you a positive roi over a large sample drawdowns take place when you get a bad run maybe because you misread your opponents strength or becuase they hit their outs on the turn or the river.

Trading is the same

You divise a stratagy which a large sample of trades shows has a positive expectancy (you gain this info by backtesting and then practising on a demo account (demo is a bit like the play money tables)

Now you go live and you are expecting a 40% win rate over a large sample but just like poker you may lose 10 trades (hands, SNGs, MTTs) in a row.

Then you might go on tilt and start breaking system rules going wild and gambling, further damiging your account and roi.

This is why the money management rules in poker are also applied to trading (as in the amount of your bankroll to risk on each game/trade.

You stopped playing poker because you did not enjoy the game, that made the swings harder for you to take.

In trading you have to accept that losing trades are part of the game and be able to continue without letting them effect your performance.

As to looking for a business that makes you happy...only you can find that out.

 

[geraldgigerl]

Indeed i had problems with staying under controll and bankrollmanagement. Naturally nobody enjoys loosing but the ones who can handle it easier are better for it.

For me its hugly important to have a job where i also get some feedback from customer/members etc... and i must give something back to the world to be satisfied with myself.

What would u say; i looked at this demo software now but im not interested in trying something at all. i dont know why but i cant. Maybe its because i need someone who is showing me the system a little bit at first (this forum is really a great place to get information but i think things would be much easier if someone could show u through the software personally).

I really dont know what business could fit to myself i have tried now a few things but nothing seemed to go my way. Any thoughts?

 

[geraldgigerl]

to poker: i actually enjoyed playing and i loved the challenge to observe my opponents and the math but i couldnt handl my emotions over a longer periode when i was under pressure.

 

[HawkTrader]

to poker: i actually enjoyed playing and i loved the challenge to observe my opponents and the math but i couldnt handl my emotions over a longer periode when i was under pressure.

In what respect were you under pressure while playing poker?

 

[geraldgigerl]

i couldnt handle loosing by no fault of myself