Starting out - what would you do differently?

timsk

Legendary member
7,600 2,374
Nephin,
I don't really qualify to comment as I'm not an "experienced" trader - only having been in the game for 18 months or so. However, for what it's worth, I've recently started doing something that I wish I'd done from day 1, as it's already proving to be beneficial. Namely: I religiously print the chart of the instrument I've traded and write notes as to my reasons for entering and exiting the trade where I did. Most traders develop a trading system and the act of writing down your reasons for the trade enables you to see how closely - or otherwise - you adhere to your system. More importantly, I then write down any lessons the trade has taught me (and learnt from - hopefully) which will help to reduce losses on future losing trades and increase the profits on future winning ones. It's a sort of written trade post mortem and, for me, it's proving a very worthwhile habit to get into.
Tim.
 

BBB

Experienced member
1,071 3
Tim. Well done. I agree with you 100%. Not many people have the discipline to do this - what a shame.
 

Buk

Established member
615 6
this is by far the most "interesting" thread I've visited so far...I have literally just started, and was confused/concerned with all the variances of technical information req'd to set up trades. I realise you have to have guidance & supporting trading tools, but by far the most important strategy I've learned already from this thread is : know yourself.....I particularly like Timsk's extremely good advice regarding 'trade history' & keeping records etc....thank you timsk, and thank you everybody for your honesty.....it is invaluable advice to new traders, and me personally.......kind regards!!
 

jamus

Junior member
46 0
I would definately have used smaller stakes (margin) instead of going for the home run after the first initial trades went my way. I think its best to start with losses initially than the other way round. That teaches you to be humble and to respect the Market, and to do more research.
 

EK1

Established member
654 18
I am starting out ............... and I am trading 1p trades on Finspreads.

Have done paper trading but it doesn't compare to real cash in a psychological sense - even at 1p per trade.

Trading the daily Dow from 5.30 until close.

I can only learn through the experience.

Still my BIGGEST problem is how to interpret the Dow . My strategy so far has been to look at the trend and try to understand where its going, with very little thought. Don't get me wrong, I do scan the the finance sites for snippets but I can't seem to get it.

Any advice??

Thanks
 

EK1

Established member
654 18
Skim,

I'm not sure of time-frame: do you mean which chart I am looking at?

If that's the case then I'm looking at a roughly 5 minute chart, over the course of 1 day.


I'll post a chart to show you. (if I can manage it!!)


Forgive me if this is an incorrect interpretation of your question.

EK1
 

shazbots

Junior member
13 0
EK1

Go to signalwatch.com and sign up to Ed Downs market watch, its a free daily newsletter that gives a very good commentary on the Dow.
 

EK1

Established member
654 18
Can't seem to attach *.bmp........any ideas??


Shaz, thanks for the Dow link.


Cheers
 

timsk

Legendary member
7,600 2,374
EK1,
For trading the DOW, you could do a lot worse - correction - you'd be hard put to do much better - than to read ChartMan's daily thread. It's an absolute must for anyone trading that index. Go back to the start where he explains his basic strategy. It's 'top drawer' stuff and totally free. Enjoy!
Tim.
 

EK1

Established member
654 18
Timsk,

I'm off to the thread ....

Thanks a lot for pointing me in the right direction.
 

Glenn

Experienced member
1,040 118
EK1
I too recommend Signalwatch, but only as a training ground, not as a tipsheet for trading the Dow.
The reason is that you can't trade the Dow (unless you buy and sell shares in all 30 sompanies).
Spreadbetting prices are not the same as the underlying Dow prices. They include the Futures price and the spreadbet company's own order book and view of their market.
Watch the actual Dow and the spreadbet prices for a few days and you'll see what I mean.
If you are spreadbetting the Dow, then, as others have said before "you will get killed" if you try it intraday.
You will need to develop a longer term method to have a good chance of success.
Glenn
 

Skimbleshanks

1
2,325 16
EK1:

instead of using a .bmp, can you save it as a .jpg file? Then use the Post Reply option, and at the bottom you'll see where to attach the file.

Yes, I meant 5 min, or 10 min. You may find that using the 5 min still has quite a lot of noise, so perhaps try looking at the 10 min as well.
 

DaveJB

Experienced member
1,159 42
Most of all I'd not buy VOD, and I'd have bought more BOL.
Secondly I'd ditch Funnymentals and stick to TA
Third I'd have read Jiler's book sooner
Fourth - after spending 1-3 months (depending on fanaticism...) on places like Stockcharts looking up how charts etc work in the 'Chart School' (I believe you REALLY need to know how to construct indicators before throwing them away with great force) I'd then paper trade for a month or two setting realistic 'slippage' such as "I'll say buy or sell, and assume the price I would get is the one quoted 5 minutes later. I'll then deduct 3% for a standard share trade to cover costs". After that I'd check I was not losing badly.
Fifth I would now decide that I was ready to start learning, look for a one day TA course that cost no more than £400, and was firmly based on teaching me to read charts rather than use some secret combination of moving averages that nobody else knew about.... Omitrader 2005 (or whatever the current version is called) and Updata do this optimisation every heartbeat or so and last I heard the entire population of the USA was in debt so optimisation can't be quite as good as it's cracked up to be....

Forget 6 months of paper trading etc - it's good advice, but who ever met a human being who had the patience to do it <g> Learn as fast as possible, learn the real basics of reading a chart without any bells and whistles from someone who charges enough to buy toys (not a Learjet)
 

mias

Newbie
6 0
I have to agree with some of you new members on this thread. Invaluable info and I think the biggest danger to me is information overload.
Soaking in hours of reading and trying to find what works for me is a bloody nightmare.

As for making all those expensive mistakes in the beginning, I'd much rather use that money elsewhere.
Challenge for the more experienced traders out there;
:idea: what about trying to organize an open-day kind of thing where you allow new people to come and see how you put into practice all that has been said on these boards...? :idea:

Not a training course to teach you the basics of trading but more a day of sit in the corner and look at how it's done in the real world.
I mean the proof is in the pudding, is'nt it... :?:
 
 
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