Novice trader - new to board...advice wanted (pls)!!

[TysonA]

I have just stared spreadbetting on the FTSE (2 days in) after a long period of research followed by a month refining a strategy on a virtual account. I was consistently making 15-20 points a day on the virtual account using a very basic strategy following a monthly and weekly trend line and picking the support/resistance points.

However, since moving into the real world, I my strategy has not worked as I expected. I have thought of 2 reasons - first, when I was practising the market was in free fall and I found it quite easy to pick my points to go short. Now we are in a mini bull it may not be effective. Second, my mentality has changed - I was more willing to take risks in the virtual world.

Does anyone have any tips/advice in relation to my 2 issues??

Also, is there anyone out there who may be interested in chatting over email/msn about trading ideas on the FTSE - points to look at, resistance/support points, discuss positions? Or is there a forum on here where such discussions happen (this place is a bit of a jungle!)...

Thanks in advance...

 

[Vrothdar]

However, since moving into the real world, I my strategy has not worked as I expected. I have thought of 2 reasons - first, when I was practising the market was in free fall and I found it quite easy to pick my points to go short. Now we are in a mini bull it may not be effective.

Best solution to that is to test your strategy over a longer period of time. Best way of doing this would be to use some hisotrical data to allow you to test it over years while continuing to forward test.

I'm afraid I can't help you with the second point as I've not made the transition from developing a strategy to live trading myself and as such have no experience of how to deal with it.

 

[alexf]

I have just stared spreadbetting on the FTSE (2 days in) after a long period of research followed by a month refining a strategy on a virtual account. I was consistently making 15-20 points a day on the virtual account using a very basic strategy following a monthly and weekly trend line and picking the support/resistance points.

However, since moving into the real world, I my strategy has not worked as I expected. I have thought of 2 reasons - first, when I was practising the market was in free fall and I found it quite easy to pick my points to go short. Now we are in a mini bull it may not be effective. Second, my mentality has changed - I was more willing to take risks in the virtual world.

Does anyone have any tips/advice in relation to my 2 issues??

Also, is there anyone out there who may be interested in chatting over email/msn about trading ideas on the FTSE - points to look at, resistance/support points, discuss positions? Or is there a forum on here where such discussions happen (this place is a bit of a jungle!)...

Thanks in advance...

I would endorse your two reasons for the difference between the real and the virtual world. One is psychological and relates to your preparedness to take risks when its for real and yes, the market has been less volatile since late July - maybe it's today with holidays.

I'm in a very similar situation to yourself. I've been trialing a system for the last couple of months, have got it to work on paper but have had less success since I've gone live a couple of weeks ago. I'm using the much maligned Louise Woolf's Earlybird system, which attacts a lot of negative comment on this forum. These if anything have spurred me on and I've made it work through a combination of additional candlestick patterns and sheer determination.

I'd like to talk more about your support and resistance points. In return if you want, I can give you some tips around the dreaded Earlybird system

Look forward to hearing more.

 

[TysonA]

Thanks for the reply Alexf.

I agree with your point about the psychology of paper vs real trading...what I have tried to do is take the money I am using as "written off" - unfortunately I have not quite convinced myself!

I am definately up for discussing some ideas - although I have to admit I do not know anything about the Louise Woolf's Earlybird system. Infact, I have puposely stayed away from systems because in general I think they require more time and knowledge to master and do not necessarially get the equivalent results (maybe this says something about my personality!).

I have a pretty simple method to find my support and resistance points. I start off looking at a 3 month / 4hr graph and search for obvious points where the price has hit and bounced off in either direction (usually around "round" numbers - e.g 5000, 5100, 5500 etc)...

I then narrow this down to 1 month / 15 min doing the same thing but focusing specifically at the points I highlighted before hand. If I find any new points I highlight them.

Since I am looking at day trading, I then reduce my graph to 1 week / 10mins and look at the general trend (I use a rule of never betting against the trend). I then reduce the graph again to 2 day / tick-by-tick. I reckon most traders would disagree with trading off this graph but that is what I can (seem) to read. I want to try to develop longer term views but am trying to stick to my strategy as much as possible.

I find that off on the tick-by-tick graphs the support / resistance points sometimes do not match up (obviously because of the time frames) - but I still make note of them and then mark out some new ones. Now they are all in place, I look for tunnels around them where the price is fluctuating between the 2. I then trade in the direction of the trend - when the trend is up I go long when the price bounces off the support point.

Hope that makes sense - pls come back to me with any questions or suggestions!

Tyson

 

[Lee Shepherd]

TysonA,

I would be happy to have a text chat on skype but first need to know about yourself, fill out your profile if you wish as at the moment it just says a bloke in england.
Also, how long you been active or practicing, studying ect? Part/full time, how many hours dedicated, how serious ect. Once I know a little more about you I may be able to throw some pointers your way.

Feel free to checking out my profile page and be sure to see my blog if you wish for evidence of trading career backed up with screenshots of trades.