What should I trade?

[mpengland]

Hi All,

I've been studying TA for four years now and it's about time I thought about actually trading. (My approach to TA is a very simple one, I like low volume pullbacks in strong trends and I don't mind if I have to wait for days until I see a scenario that I like).

I am finally happy with my system (if you can call it that) and now I have to make a decision about what to trade. This might sound like a daft question but I have studied charts of everything I could find, stocks, bonds, currencies, futures, commodities, whatever, and now that I feel ready to try trading I have no idea which instrument to actually trade. I guess I'm a cross that bridge when I come to it type of person.

Anyway, my question is this, what in your opinion would be the best/cheapest instrument to cut your teeth on?

Many thanks

Mike

 

[TBS]

What time of the day do you have access to the markets? - If you have time constraints (such as a 'real' job) that should start to narrow your choices down.

Then:

What time frame are you looking to trade over? (scalp, intraday, swing, position, EOD)

How much cash have you available to trade with? (Initial margin requirements and what you are prepared to risk may also limit your markets)

 

[mpengland]

>> What time of the day do you have access to the markets? - If you have time constraints (such as a 'real' job) that should start to narrow your choices down.

Afternoons are generally free

>> What time frame are you looking to trade over? (scalp, intraday, swing, position, EOD)

Mostly intraday but I would like to trade EOD trends as well.

>> How much cash have you available to trade with? (Initial margin requirements and what you are prepared to risk may also limit your markets)

Not much. The cheapest quality approach is the one I need to find.

thanks

mike

 

[options]

Mpengland.
Seeing as it's your second post. I'll say welcome to T2W, Though I don't know how long you have been on here.
You've been studying T.A. for four years?
Good. I like a man (or woman) who puts in the 'time' So many people rush in and get hammered, or even worse they rush in and win the first few, which makes them think that this is easy.
Now you have a bit more time to put in as you adjust to using your own money for real. (There is no substitute for this.) This is the making or breaking of a trader.

I would suggest if you have the afternoons free, to trade the usa; shares or e mini dow. Or the 'live' currencies.

As much as I hate them, even though I do use them, the SB peeps offer a cheap entry into the markets. I think CMC are £1000 min to open a account. Double that and a bit and you could get IB direct access. But for the e mini dow it's $5 min whereas with cmc sb the min is a £1. (But taking the spread into account I'm not sure the £1 one is the cheapest! Don't try intraday stuff with a sb co though, go for swings. This will give you a more relaxed approached. Intraday can stun you like a rabbit caught in car headlights if you are not ready for it. Though if you suffer from constipation, intraday is the cure.

 

[Oldun]

if you suffer from constipation, intraday is the cure

Nothing quite like some really bad news after the close to create a bowel movement if your'e holding a long position overnight! - Even worse if position is short.

Oldun

 

[ChowClown]

Mpengland,

Forex is interesting - I'm a newbie and Skim's thread on the free trial at fxcm.com caught my attention the other day. I'm trading the GBP/USD today via Finspreads at a £1/pip on a Sept contract with the free trial FXCM realtime charts (lasts 30 days).

I'm using the 100ema on a 5 minute chart over 12 hrs (their default period setting) plus MACD and RSI for entries/exits and it works a treat - nice trends and a leisurely pace. I also trade the DOW for a bit of 'excitement'. Another plus point with fx, is that you can trade anytime. I think the FXCM mini account can be setup for $300, the deposit for the 100k account is $2,000, I think, don't quote me.

Whatever you decide to trade, good fortune.

 

[mpengland]

Many thanks for your suggestions.

The mini Dow makes a lot of sense because I have already spent more time on INDU than any other chart and $5 is pretty cheap. The idea of the extra cheap Forex is also very interesting because being able to trade at any time of day is most appealing. Thanks for your time. It's been very helpful.

mike