New Trader

[slicktee]

Hi everyone, im brand new to t2w, and a complete novice at trading, could you tell me the best way to start, books to read and software to use. i wish to start small and dont wish to spend fortunes getting started.
has anyone heard of vince stanzione, ive just recieved his mailshot and its wetted my appetite, thanx guys

 

[Helenqu]

Hi slicktee,

Welcome to T2W.

The answer depends a bit on what sort of trading you want to do. Do you have any ideas about which markets/instruments you might want to trade?

Have you read any Technical Analysis books? The classic (but fairly expensive one) is JJMurphy's Technical Analysis of the Financial Markets. A cheaper, but good alternative is Jack Schwagers Technical Analysis.

Read as much as you can, paper trade, trade small (Spreadbetting is a good place to start) and take as little risk as possible. It takes time to learn to trade well and hence profitably.

Above all ask as many questions as you want to and don't be afraid of being thought silly for asking.


All the best

 

[tradesmart]

Hi Slicktee,

I know a little bit about Vince Stanzione as author of ‘How to Stop Existing and Start Living’ (nice concept!) and a financially successful young man and an ace spreadbetter who is confident enough to publish his statements from IG Index and CantorIndex etc on the internet to prove how easy it is to make big money!

I think that anyone who is thinking about any form of trading/dealing in financial markets should have a serious wealth warning along the lines of “it’s not a get rich quick scheme, it’s more of a go broke in a week scheme” or “he who makes a million in a day will get hung the next”!

Having mentioned the down side, there are many pro traders in financial markets who are making a decent, reliable living from it without taking excessive risks.

From my own experience, you can quite easily pick up the key trading concepts for free by reading the many excellent posts on this site and keeping an eye on business websites to identify the driving forces, rational and irrational, that are moving financial markets and share prices. Have a look at http://cbs.marketwatch.com

Trading in the UK is about 5-10 years behind what is happening in the US, particularly in terms of software, and is very expensive. By all means keep an eye on UK markets, but mostly they are driven by what is happening in the US.

You’ll have to identify what type of trading will suit you, but my observation is that the guys who are consistently winning are trading the US markets using advanced software that greatly increases their chances of success whilst minimising losses.

Having a look at the following websites will give you a good lead in:-
http://www.daytrading-university.com/monkey43.htm
http://www.tonyoz.com/
http://www.worldwidetraders.com/
http://www.traderslibrary.com/

All this and you haven’t spent a dime yet!

For an alternative style of trading with a very UK flavour, read ‘Evils Good’ by Simon Cawkwell (aka Evil Knievel) who is a spreadbetter who is highly successful at betting on companies who’s share prices are going to fall (‘shorting’). He claims to have made £3 million this year alone. (your local library may have a copy!!)

I should give yourself 6 months to 1 year for the learning curve before you risk one penny.

The most important expression you’ll ever hear in trading circles – “stop-loss” (learn it well)

Regards, TradeSmart

 

[shinobi]

Slicktee

I'd second everything said above by Tradesmart. You might have to dig a bit but most of the information is available a lot cheaper than VS will supply - and I speak as someone who has bought his course! Nothing wrong with his material - but It's just not as easy as he (and others) might have you believe. It will definitely take time - and not a little money by way of "course fees" (aka losses!).

My experience is that there is no Holy Grail, from VS or anyone else. YOU must do the work to research, study, and learn from your inevitable mistakes. If you persevere you just might start to develop a system that works for you personally.

I'd also recommend a book by Van K Tharp called "Trade Your Way to Financial Freedom" - he says it all much better.

 

[dsmodi]

foe those interested, the topic on VS has already been covered elsewhere on this website - may be worth a search for it....

 

[Naz]

.

You’ll have to identify what type of trading will suit you, but my observation is that the guys who are consistently winning are trading the US markets using advanced software that greatly increases their chances of success whilst minimising losses.

You are spot on tradesmart and for others that dont know i assume you are talking about Nasdaq level 2 direct access.Its one of the fastest,most open,low or no spread ways to trade long or short in the world with numerous ways to execute cunning execution stratergies that boost your profits.You can use it manualy or leave it and put in your orders/stops and let the software manage it for you.Uk traders weep when they are shown exactly what you can do with it.Their jaws drop.They then realise how far behind trading in the UK is and what farce UK level 2 is.Nasdaq stocks can have huge moves which allow short term traders exceptional profit oppertunities.

Its probably not suitable for absolute new traders but worth knowing it exists so that further down the line when you get frustrated with the UK you know where the next step can be.This of course is only a personal view and any style of trading can result in the participant loosing some or all of their capital.

 

[machine]

Hi slicktee

Firstly forget paper trading anybody can make money paper trading, all that you will do is to cheat yourself .

Secondly you will need to decide what type of trading you will be doing stocks, indices, futures,day trading,scalping,position,ect,You dont want to spend much money so you will have to open a spread betting account and play with pennys (FINS),I would try and avoid Daytrading ,scalping ,with sbetting it is a losers game,The spreads and spread bias will kill you .

The most importantant thing to learn is money management without it you will ultimately fail bigtime learn to cut your losses most people dont .With proper money management you could enter your trades on a flip of a coin heads you buy tails you sell and would still stay in this game a lot longer than most

Forget about any super dooper software that scan loads of stocks and gives you buy sell signals or any other BS holy grail system there isnt one .

Avoid Market analysists giving meaningless advice and predictions no one truly nows whats going to happen tomorrow


http://finance.lycos.com/

http://www.quotetracker.com/

http://www.island.com/index.asp

http://www.prophetfinance.com/default.asp
http://www.barchart.com/



if you stay in this game learn Nasdaq level11 its not easy but it beats the pants off all this TA rubbish.

 

[Naz]

if you stay in this game learn Nasdaq level11 its not easy but it beats the pants off all this TA rubbish.

Machine great to hear from someone else singing the praises of Nasdaq level 2.

 

[shinobi]

OK guys - can you give me a good way of researching Nasdaq Level 2? Heard a lot of people talk positively about it. Where can I find out about it? All input gratefully received.

 

[Naz]

Try www.traderslibrary.com.for books on the subject or give me a call,my email is in the market chat thread where you might find one or two interesting pieces on it.

 

[Riz]

Thanks, nobrainer...I always prefer posts reflecting real experiences to 'well thought' ones...

Riz

 

[Naz]

the biggest secret to make money daytrading is to stop your self losing it in the first instance ie. cut losing trades ASAP before emotion takes over.If you sell a profitable trade too early you are still a winner overall.If you run a losing trade ,you can end up losing all your capital.

I agree with nobrainer.But for many its difficult putting theory into practice.However one of the reasons some of us go on about Nasdaq level 2 direct access is that we can trade in the blink of an eye and when we see our stock is about to collapse, execute and be out before it appears on a chart which takes away a lot of emotional negativity.This means of course we can keep our stops realy tight,if we want to.

Selling a profitable trade to early does yes still make you a winner.If you have the trading set up to do this so quickly, many times you might scalp quick profits before you get in for the longer move and this only adds overall to your bottom line.

 

[new_trader]

Fooled me again! I should have signed up with the first nic I thought of which was how_much_money_can_I_make_from_trading?

 

[neil]

Fooled me again! I should have signed up with the first nic I thought of which was how_much_money_can_I_make_from_trading?

Only ten years out of date

 

[new_trader]

You're so on the ball neil...incredible!

 

[neil]

You're so on the ball neil...incredible!

I bet that tortured a few grey cells compiling that retort

 

[new_trader]

I'll let you know in 10 years time, see if you can catch me out twice!

 

[neil]

I'll let you know in 10 years time, see if you can catch me out twice!

hahaha -now it's Friday night so go out and enjoy yourself