The Jack Schwager Trading Course?

[jpwone]

Saker

to get back on topic.

Yes, you can do exactly what you want to do by trading Forex. The beauty of Forex is the high margin allowances, however, this is a double edged sword.

You need to prepare by trading a dummy account (www.fxcm.com) do this and then once you can trade without losing too much too quickly you can start learning by opening a real account and trying to conserve your capital for a while. If you are gifted or lucky you will make money from day one. If you are the average punter you will lose money. If you are in the 5% who are determined to learn how to do this and who will eventually consistently make money then you will know early on if this is for you.

When trading Forex stops are essential. Learn to lose money by having your stops hit. Every big loss starts as a small loss.

Why is the high margin a double edged sword? If using a mini account you can trade at 200 times your capital. Your 2000 US gives you 400 000 US of trading power. Trade to the limit and a trade goes 0.5 percent against you and you are wiped out. Doubling into losers and other poor trading techniques will bite you big time with Forex. Just because you have the margin does not mean you have to use it. If I have a bag of salt i do not put the whole bag on my meal, I use a pinch at a time. The bag lasts far longer and my meal is much more enjoyable.

So, my view. Paper trade until you have developed an understanding of the market and a trading method. I do not mean for a couple of hours in a week. I mean sit and paper trade like it was your job. Try to put in 6 hours a day 5 days a week for a couple of months at least. Learn about discipline by trading ultra small stakes with the intention of minimising losses. Start to trade with bigger stakes when you find the pot is increasing even with the small stakes.

HTH

JPWone

 

[Salty Gibbon]

I bought 200 shares of MMM today at US$ 79.69.
I sold them at US$ 80.20.
Profit = 200*51 cents = US$ 102.
Less US$ 2 commissions and I have netted US$ 100.
Easy as falling off a log.
THAT IS MY DEFINITION OF A MODEST TRADE !!!
AND YOU DO NOT NEED US$70,000 OF CAPITAL

 

[Salty Gibbon]

Shall I now call in the auditors and get forensics to take photographs of the proof ?

Are DNA samples required ?

 

[Skimbleshanks]

What's that got to do with the original question? Saker is talking
about the FOREX market - and even I know that Minnesota
Mining & Manufacturing isn't a currency.

 

[Salty Gibbon]

Markets are markets - the principles are the same.

Even you should know that !

 

[Salty Gibbon]

Skim - you voted for me !

Why you do that ?

 

[Skimbleshanks]

I suggest you use your imagination and get somewhat brighter

Looks like I didn't succeed.

 

[Salty Gibbon]

lol

 

[saker]

Ok this went a little out of context for my first post. I just wanted to know of some books or suggestions on developing my own system that will let me find out what kind of trader I am. I have read The trading athlete to learn a little about the psychology of trading any way thanks for the good info about support and resistance I have been using the indicators and doing so well so I will try to just look at support and resistance. Back to the first question does anyone have the jack Schwagger course or know if he has his own website I can not seem to find one?

 

[saker]

Skimbleshanks thanks for the suggestions I don't want this to be a get rich quick scheme I want to be a proffesional trader and I find what your are saying to be little more sound advice. I realize profit can be much greater in the forex market but the losses are their to. Let me see if I understand what your saying your saying I only want to have 4% at risk at a time to control my losses correct?

 

[darktone]

Hello Neil
sorry m8 just seen your post. The charts are the freebie FXCM with the colours tweaked, i dont use the indicators so no point in paying.

saker
Some good points here amid the handbag swinging
Paper trading with dummy account is a good idea providing you expect the real thing to be at least ten times harder . You can cut your teeth with it no more. Easy to make a killing with the dummy acc (because there is no real pressure) then lose all your dosh trading the real thing.

There no set time for you to become a 'trader' you may do in weeks, you may never do it! The market will mentally try to shaft you, its how you deal with this that governs how quickly you can become profitable. I wouldn't suggest giving up your job until you have a substantial pot and feel at ease which means you wont have time to daytrade :cheesy: 'thats that little problem sorted '.

Regarding the vendors, let them take the grail chasers money! you've got to be smarter than that to make it in this game :!:
I think skim was using 4% as an example of the BS return nothing more. How much you risk per trade depends on how you trade, sound money management + Risk?Reward and good discipline are key, you have to find what suits.

I guess the final comment should goto 'limiting losses', simple eh! ive never believed in limiting profits. Again you've goto find your own path. DYOR/dont listen 'to much' to the BBs and if what someone tells you doesn't make sense? *it probably doesn't make sense*

GL + keep in touch
regards
dt

 

[Skimbleshanks]

Hi Saker

Yes, as Darktone says, I was just illustrating the fact that a 4% per MONTH return on your funds is something you should aim for when starting out. ie don't set out with the expectation that your returns will be huge, as you will be losing and learning, learning and winning. If you are realistic in your expectations then you are on the right road.

Yes there are those who make 4% per day out of the markets, but that is an unrealistic objective when starting out.

On a pot size of $2k, then I would suggest risking no more than 4% per trade - the bigger the funds you have the smaller the percentage you risk, but it's very difficult to risk only 1% per trade when you only have $2k in the pot! Read up on money management and how to work out the initial risk. Alexander Elder's book Come Into My Trading Room is quite good for this I believe. If you can keep your money management under strict control, then you will keep yourself in the markets.

At this stage, you just need to practice, spend hours watching the markets move to get a feel for the way they move, and slowly learn. You'll never learn it all, or know it all, but you just need to know and learn sufficient to be a consistent winner in your trades.

As Darktone says, the emotional part of trading may be the hardest thing to overcome, and that is why no amount of paper trading or looking at historical charts will be a substitute for actually taking the trades.

Never get bogged down in all the trading talk - keep it simple, because simple is the most profitable.

 

[Salty Gibbon]

Saker

Suggest you get a real-time charting package and just sit and watch as the charts unfold live before your eyes. Just follow the market and see how it moves. Get a feel for it - might take a while though - but 4 months rather than 4 years.

Don't get bogged down in Technical Analysis mumbo jumbo. Just keep things extremely simple and trade what you see. Follow the market - do not second guess it.