startup tips

[binsley]

Hi everyone,
great website. Good to hear from so many likeminded people.
Am thinking of starting trading for myself after working for a large company for several years. I would like some recommendations for trading systems+clearing firms suitable for high volume low margin (equity/futures) trading. Or any ideas on where to start researching.
Appreciate any advice.

Cheers guys

 

[Naz]

Find 1-3 traders who you think walk the walk rather than talk the talk.PM them on sensible trading matters and have a chat.Sift through what they say.

Most beginners cant trade,they emotionally do all the wrong things.The guys that do it for a living should have long conquered all that.

Thats my tip.

Naz

 

[Simon]

Most beginners cant trade,they emotionally do all the wrong things.

Quite true, but before a beginner can start to tackle that stage with any success they must reach a decent level of technical (all non-psychological factors) proficiency. It is essential that they have the confidence in their reading of the market to allow their emotions to be faced head-on & conquered .

 

[Naz]

Emotions in my opinion can also lead to an incorrect reading of the market.

 

[TheBramble]

Absolutely!

Anyone see that 'Bermuda Triangle' program on BBC1 last night (Sunday, March 14th)?

The Flight 19 that went down had one (UK) investigator suggesting that visual disorientation led to a condition where the flight leader (Taylor) thought he was over the Florida Keys, but in fact, was over the Atlantic. He interpreted everything he saw (and didn't see) according to his already certain (but incorrect) mind-set of where he 'knew' he was.

Even the rest of the flight couldn't convince him of what they knew was quite clearly a wrong position and a wrong direction.

It's easy to get like that with trading too. Add to that the fact that we have in incredible capacity for finding patterns where none exist and you need to be very careful when trading.

Keep emotions out of it. Check and check again your position, direction and reason for being there. Have absolute confidence in yourself but make your entry criteria prove themselves to you 100% before going in. Same on exit.

 

[TBS]

Hi everyone,
great website. Good to hear from so many likeminded people.
Am thinking of starting trading for myself after working for a large company for several years. I would like some recommendations for trading systems+clearing firms suitable for high volume low margin (equity/futures) trading. Or any ideas on where to start researching.
Appreciate any advice.

Cheers guys

Hi Binsley,

Are you intending to trade on-line or by phone, when you say equities are you talking cfd's or straight stock purchase/sale?

 

[darktone]

Have to agree with the above comments re emotions, its been the tallest wall for me to overcome being quite an emotional kinda person. As naz/bramble said very easy to 'see whats not there' when your mind is suffering from a missed opportunity/losing trade/boredom etc. my normal trick is to descend into over trading and screen watching when things are a little rough and im no noobie with nearly 5 years in.

Different people react in different ways to pressure, i found TA a doddle to pick up and understand. It was the interpretation and execution of the 'opinion' due to emotional weakness that was the problem. Now all of my trades are automated on line breaks which takes the decision out. Still can find myself struggling on occasion but i realise when this is happening now, then you can sort of step back and wake up and override your emotion with logic.

Trading 'at least for me' should be black and white,it is there or it isn't.... full stop..... anything else is a hope and a prayer.

regards
dt

 

[binsley]

Thanks for the comments guys.
Regarding emotions - I guess you only know whether you will "react" in the right way when it happens. Or more likely whether the next time you correct the emotionally driven (wrong) reaction after losing (hopefully not too much) money from it the first time. Easier said than done though!!

Hi TBS,

Seems like cfd's best option what with 0.5% stamp on buying stock. Will definitely want to trade on-line. Heard Refco pretty good.

 

[TBS]

Hi TBS,

Seems like cfd's best option what with 0.5% stamp on buying stock. Will definitely want to trade on-line. Heard Refco pretty good.

For high volume cfd's and on-line trading, Refco or GNI - I know most of the spreadbetters do cfd's, but no idea how they compare in terms of costs.

 

[binsley]

thanks TBS

 

[Naz]

Analysis paralysis.

Some traders can learn so much that they over analise every situation and because of this find it difficult to take the trade because of the conflicting signals they're seeing.

My tip is to reckonise this if it happens and realise that your to clever for your own good,so keep it simple.

 

[EagleRock]

Bramble

I saw that program too - and just felt so sad for the rest of the flight. Now me... I'd of told the leader to stick it and peel off - heck that's what intruments/systems/teachings/TA/eyes are for - yes?
Gotta believe and to my mind like darkone, DOIT... not 'thinkit'. Procrastination springs to mind (to put off, habitually doing something that should be done). Thinking of the trade exit here. In reality it's kinda simple really - on entry the exit should be known imho (and... if/when that condition = TRUE then bail asap), there's always another trade around the corner. The human conditions which 'inspire' people to ignore or vacillate/fluff around just pre-disposes one towards failure - perhaps just like the poor sods on the flight.
TA sometimes to me seems like bringing in all the subjectivity elements of ones being... and as Naz says KISS - boy I just love that acronym!

Tim

ps... nice Vnice sunny day in B'mth this a.m.!
soon time to get the lotion out!!!