Suggestions please ... (+ help)

[a0-0b]

I'd appreciate any help/comments you may have. I've got my head around some of the psychology of trading having paid quite heavily for the privilege. So my plan is ...

1. Get historical data for stock, index, futures and forex.
My intention is to trade stocks on NASDAQ&FTSE, as well as spread betting on forex, indices and stocks. All suggestions on where i can get this welcome. Also happy to accept suggestions on what else to look at or avoid.

2. Backtest strategies on the historical data.
Metastock, ts2000 and excel seem to be the prefered tools!! I'd really appreciate examples of people using excel - it's nice to read how you checked drawdown etc (already grabbed one from FetteredChinos, thanks).

3. Find a data source for streaming data.
This one's in the future a bit.

4. Find someway to fill in anything missing betwen the historical data and the streamed data.
Often wondered how people fill the gap between where the historical stuff ends (from a CD for example) and where the data provider starts (today?).

5. Pick brokers.
IB seems to be the prefered DA broker, and i can't speak highly enough of capital spreads at the moment. Their interface isn't the best but their customer support is excellent (from my experience at least).

6. Trade!

 

[TBS]

What is your proposed time frame?

Try this lot all at once:

My intention is to trade stocks on NASDAQ&FTSE, as well as spread betting on forex, indices and stocks.

.. and you will be toast.

Do you actually have a trading method/ strategy?

 

[a0-0b]

I'm writing something based on FTSEBeaters "starter threads" on support/resistance trading. I intended to scan NASDAQ+FTSE and trade 2 or 3 times a week with 3:1 risk/reward (including spread). Cause i'm spread betting i don't really see a difference between the two markets. Once i get this running i'll move it to IB. The work on forex in the same way.

Yeah it's a lot i know, but im going to take it slow.

 

[neil]

Essential reading to avoid being "Toasted" by the market

http://www.trade2win.co.uk/boards/showthread.php?s=&threadid=8332

 

[TBS]

I'm writing something based on FTSEBeaters "starter threads" on support/resistance trading. I intended to scan NASDAQ+FTSE and trade 2 or 3 times a week with 3:1 risk/reward (including spread). Cause i'm spread betting i don't really see a difference between the two markets. Once i get this running i'll move it to IB. The work on forex in the same way.

Yeah it's a lot i know, but im going to take it slow.

OK, now we can look a bit further forward.

What you appear to be considering for FTSE and Nas stocks is a form of swing trading. I think you will find it very difficult to work a 3:1 risk/reward combined with support and resistance trading, that just isn't how they work. The risk/reward is generated by the support and resistance levesl when considered against your position size and money management.

FTSEBeater does not know how to trade sup/res positions.

IB is not spreadbetting it is a very different kettle of fish as is forex

Some thinking for you:

a. why have I decided to play the markets?
b. why have I chosen specific markets?
c. what tools do I need to participate successfully?
d. what should I buy?
e. when should I buy?
f. when should I sell?
g. how can I reduce my risk?
h. can I psychologically carry out this strategy?

I'd be interested in the answers.