Anyone need any help?

[NVP]

Hi Lee,

You say you commit do or die to a trading plan (target). I was wondering if you could bare light on to how you make your targets, I think being new this is one of the toughest things for me and I guess it is something that comes with experience, picking the right target price. Any advice for how to select targets?

Appreciate the consideration

hey GT

Lee is trying to show you what experienced traders are looking for when they evaluate a possible trading opportunity

most beginners and intermediates are looking at all the wrong things ......thats why they fail so much

personally for me all i am worried about is how much i could lose in a trade and where i need to be entering and setting stops to minimise that situation

im not that fussed about targets ....how the hell do i know if i get a 2:1 or a 5:1 on a trade ? .......my exit stategy is geared to optimise my returns if the trade starts running .....its not worth worrying about

just worry about minimising losses on losing trades ......:smart:

N

 

[Lee Shepherd]

You think it has something to do with central banks this week? That sort of swing would make some people green in the face.

Sent from my SM-G950F using Tapatalk

Hi FXX,

Good question and I have of course been following (banks and your thread), but in my case and in these particular circumstances, it has very little to do with the banks this week. At my current levels a (monetary) swing of this magnitude is not uncommon. Obviously the more on the line, the bigger the move. Using and paying attention to the daily Moving Average (MA), I wouldn't detect anything out of the ordinary. As usual though, there are many tag lines I could pin to it after the event but that's of no use to me. Hows things your end?

 

[FXX]

Hi FXX,

Good question and I have of course been following (banks and your thread), but in my case and in these particular circumstances, it has very little to do with the banks this week. At my current levels a (monetary) swing of this magnitude is not uncommon. Obviously the more on the line, the bigger the move. Using and paying attention to the daily Moving Average (MA), I wouldn't detect anything out of the ordinary. As usual though, there are many tag lines I could pin to it after the event but that's of no use to me. Hows things your end?

Yeah okay my end thanks. I discovered a gem of a lesson this week in my trading which I feel would have improved my profit. I didn't include the reaction to the fed, usa retail sales and although I did account for USA inflation, I failed to see its importance on setting up a massive trade that happen after the ECB disappointment, which I expected. Thinking about it now, it is clear this would have a huge reaction. It's difficult keeping on top of all this while working a day job so I am not hugely concerned. I am seriously thinking about putting my professional skills to work and automate some of my decision making process.

Other than this I am doing well. Account is growing but I am a long way off making the type of gains that could supliment my salary and take over. Going to continue without stressing out about that for the next 6 months. I want to ensure this isn't just a temporary string of success and rather an indication of a working trading system. Adding money stress to the formula will only distract me from refining my process. I think if I make it to that point I will start ramping up account size and trading size. My first goal is to pay the difference between a standard train ticket and first class for my daily commute. Hopefully in 10 years I can give up work for good.



Sent from my SM-G950F using Tapatalk

 

[gtopmafia]

Hi gtopmafia,

Ok, I'll give you a very broad example, although not necessarily used but will give you some insight on how to base your targets, entries and exits.

Now, the difficult part here is to help without giving too much that can sway you from being you. That's the important bit. You are unique and have to find your own way and to which, most do. Therefor please accept that my following example is for educational purposes only and not a trading rule. There are also many other alternatives.

Example:
So a trader is looking for the following as set by their strategy (simplified):
A one to two risk reward ratio (RR1:2)

So they look at a chart (simplified - no time frame mentioned) and look for an entry, they will also be looking for the exit (before they click and submit). They won't base it simply as many (failed traders) do by saying 'I can see this is a good long, I'm in, now I'll set my stop 10pts below'. Thats just b0llox trading. Its all b0llox Spencer.

The trader will set their stop according to what they see and what is there, not what they want to see is there. So, the trader will use support/resistance areas, Technical only (TA), to see where the market has gone and where it could go. There are also many different variations of MA, more variations that a country of traders could possibly even study. This excludes any and all of the other TA tools that can be used and in the many thousand different forms they take. There are literally an indefinite amount of signals and variations.

The trader will also use moving averages (MA) to help determine the amount of move possible - example, the MA on the chosen market (minute/daily/weekly) is at or near it's top, there isn't necessarily much room for it to continue before being classed as over bought - technically speaking.


Lee
End of message.

Sorry mate, I'm bored now and my fingers are hurting. This is a very complex talk and not something I can even break down to something simple in a short post. If we ever meet out, I may discuss further but this is definitely a lengthy discussion, not a set in stone example set in a post kind of thing.

Thanks Lee, Any good books you can recommend?

 

[gtopmafia]

hey GT

Lee is trying to show you what experienced traders are looking for when they evaluate a possible trading opportunity

most beginners and intermediates are looking at all the wrong things ......thats why they fail so much

personally for me all i am worried about is how much i could lose in a trade and where i need to be entering and setting stops to minimise that situation

im not that fussed about targets ....how the hell do i know if i get a 2:1 or a 5:1 on a trade ? .......my exit stategy is geared to optimise my returns if the trade starts running .....its not worth worrying about

just worry about minimising losses on losing trades ......:smart:

N

Hi NVP,

How do you go about minimizing the losses any good books / sources of information to explore this further than you can suggest?

 

[Lee Shepherd]

Thanks Lee, Any good books you can recommend?

All of them, literally, all of them. Keep buying and keep reading. If there is just one line or little nugget of info or stimulus that helps you, it can only be a good read. if you've read similar books or wording then see it as a refresher course.

Your question is pertinent to so many and I hear this question a lot. My pub response is more in line with responses such as, 'how many books have you read in the last year'? Probably not that many if you're asking this particular question for this subject. Then think about how many books (putting aside other things for study) that you could read in a period of time. Think about the sacrifices you could make in not reading pointless messages and replying (phone,email etc), TV shows you could sacrifice in watching, pointless chat etc, you get my point. One could easily make the time to read a book a week - I say make as we all have 24 hours in each day, its what we do with the time we have that counts.

Then think about that for a moment, in 1 year from now, you would have digested 52 books.

Surround yourself in this industry, love it, care for it, nurture it, and yourself. I think I'm trying to say eat, breath and sh1t this industry and everything that goes with it. Every day is a learning day (unless it's Friday night then it's just a p1ssup).

Keep us updated with your research and education. You can find second hand books online for several pounds.

 

[Lee Shepherd]

Yeah okay my end thanks. I discovered a gem of a lesson this week in my trading which I feel would have improved my profit. I didn't include the reaction to the fed, usa retail sales and although I did account for USA inflation, I failed to see its importance on setting up a massive trade that happen after the ECB disappointment, which I expected. Thinking about it now, it is clear this would have a huge reaction. It's difficult keeping on top of all this while working a day job so I am not hugely concerned. I am seriously thinking about putting my professional skills to work and automate some of my decision making process.

Other than this I am doing well. Account is growing but I am a long way off making the type of gains that could supliment my salary and take over. Going to continue without stressing out about that for the next 6 months. I want to ensure this isn't just a temporary string of success and rather an indication of a working trading system. Adding money stress to the formula will only distract me from refining my process. I think if I make it to that point I will start ramping up account size and trading size. My first goal is to pay the difference between a standard train ticket and first class for my daily commute. Hopefully in 10 years I can give up work for good.



Sent from my SM-G950F using Tapatalk

10 years is too long mate. Find a quicker route by hook or by crook.

On a side note to working full time, getting ready for work, commuting, lunch breaks, winding down ect, think about how much time you spend on your full time work, not just the 8 hours of it each day but everything that surrounds it. Even talking about it to your friends/loved ones is a distraction to your trading career. Then of course you come home, have to keep the place tidy, wash clothes maybe? talk with friends, go out for food and drink, Maybe a little personal downtime, sleep etc. Its hard work holding down a full time job, working at life itself and attempting to trade part time. You will quickly notice that you miss so much opportunity and to which is detriment to your future trades. You will also be distracted and unbeknownst to you, mentally or/and physically tired which will also have a detrimental affect to your research and judgement. We make poor decisions when tired and distracted. A big jump and a huge leap of faith often is required to succeed. Think of it like opening up your own business. The odds are hugely stacked against you by working a full time job elsewhere.

NOTE: There's a million caveats to the above situation and many examples contrary to what I've wrote, but it has to be said, if someone wants to achieve something, they have a far greater chance of success by giving it their everything.

PS: I'm not condoning quitting your job today, I'm merely giving food for thought that if you are to achieve something, it has to be put in motion immediately. I can't tell you how to handle your own life but I can give many insights in to my early years. For example, sleeping on my brothers couch for months to save money (think of how much I saved in rent), eating only basic food, not going out with friends to pubs, clubs etc. I sacrificed quite a bit when I was young, probably hence why I'm so energetic now. However, sacrifices have to be met somewhere. Give and take. If someone wants more, they have to give more.

We all want to be millionaires and have that comfortable no money worry care free lifestyle but very few are prepared to do what it takes to get there. Put the wheels in motion today - start making plans today for a better tomorrow.

 

[FXX]

It's a difficult situation. I am the sole earner with a wife, 6 year old daughter, and a mortgage. The only way I think I could bring that forward is by trading for a firm for a few years. I believe I need a 200k account to do this full time especially with the leverage changes.

Sent from my SM-G950F using Tapatalk

 

[gtopmafia]

All of them, literally, all of them. Keep buying and keep reading. If there is just one line or little nugget of info or stimulus that helps you, it can only be a good read. if you've read similar books or wording then see it as a refresher course.

Your question is pertinent to so many and I hear this question a lot. My pub response is more in line with responses such as, 'how many books have you read in the last year'? Probably not that many if you're asking this particular question for this subject. Then think about how many books (putting aside other things for study) that you could read in a period of time. Think about the sacrifices you could make in not reading pointless messages and replying (phone,email etc), TV shows you could sacrifice in watching, pointless chat etc, you get my point. One could easily make the time to read a book a week - I say make as we all have 24 hours in each day, its what we do with the time we have that counts.

Then think about that for a moment, in 1 year from now, you would have digested 52 books.

Surround yourself in this industry, love it, care for it, nurture it, and yourself. I think I'm trying to say eat, breath and sh1t this industry and everything that goes with it. Every day is a learning day (unless it's Friday night then it's just a p1ssup).

Keep us updated with your research and education. You can find second hand books online for several pounds.

I work in private equity so a lot of what I read is related to that, I do have several books i'm currently looking at including Risk Arb, Option trading, trading volatility as well as coding in python and vba. I think I need to get a good book on technical analysis maybe to further develop that side of my skill set.

 

[gtopmafia]

It's a difficult situation. I am the sole earner with a wife, 6 year old daughter, and a mortgage. The only way I think I could bring that forward is by trading for a firm for a few years. I believe I need a 200k account to do this full time especially with the leverage changes.

Sent from my SM-G950F using Tapatalk

The dream of first class, are you on the south western line? I currently commute on that and the stupidity of how busy it is infuriates me. I luckily live near one of the stations before people have to stand to London... Luckily I just bought a flat in SE1 so my commute will be no more when i move!

 

[FXX]

The dream of first class, are you on the south western line? I currently commute on that and the stupidity of how busy it is infuriates me. I luckily live near one of the stations before people have to stand to London... Luckily I just bought a flat in SE1 so my commute will be no more when i move!

Essex, Greater anglia. Similar situation to yours

Sent from my SM-G950F using Tapatalk

 

[NVP]

trading part time alongside full time jobs is a very very demanding schedule.....i did it for many years

However - all i would say to anyone considering moving to full time trading and casting off those chains of employment is this

you are exchanging one stressful an demanding lifestyle for one that is far more testing and brutal......and no guarantees on any positive income at all

i dont care how hard that daily work drudgery is or the travelling and hours ....its a bloody day out at Disney compared to trading for a living and having to make consistent money .....

but you guys are aware of that ...this is just for the others reading the thread

N

 

[Lary]

Hi Piphoe,

First of all, don't be confused. Now here's the hard and somewhat controversial part. A trade is always set before you place the trade. The most important part is exit, not entry. Contrary to popular belief. If the entry is wrong or a mistake has been made, chop the trade and take the hit. Now here's the fun part: when you make a trade, stick by it. Do or die attitude. Don't listen to reports, news, your friends or anything else that may sway you. F**k em all. More importantly, don't listen to yourself. You make the trade (your bed), lay in it till the end. In other words, follow your plan through. If it doesn't work, evaluate after the event not during.

Lee

This is deadly do or die attitude. But in very positive side. You might have come from long way. How about your time for loved ones: spouse, kids? Do you manage time for them?

 

[Lee Shepherd]

This is deadly do or die attitude. But in very positive side. You might have come from long way. How about your time for loved ones: spouse, kids? Do you manage time for them?

Hi Lary,

Your question is personal to me and irrelevant to you. Do you have a question relating directly to trading that I might be able to help you with?

Lee

 

[Lary]

Hi Lary,

Your question is personal to me and irrelevant to you. Do you have a question relating directly to trading that I might be able to help you with?

Lee

I'm sorry for being direct. And it may not be irrelevant. I asked such questions because I'm finding hard time to spend good quality time with loved ones when I've been busy for trading and work. I just wanted to do right with family, especially kids who need daddy to raise them up. I think you may have solution to offer in this.
Thanks.

 

[Lee Shepherd]

I'm sorry for being direct. And it may not be irrelevant. I asked such questions because I'm finding hard time to spend good quality time with loved ones when I've been busy for trading and work. I just wanted to do right with family, especially kids who need daddy to raise them up. I think you may have solution to offer in this.
Thanks.

Hi Lary,

I don't have a solution to the sacrifices you believe you should or shouldn't make. They are always personal to the individual. Whenever I've tried helping people in this way, they will always shoot me down with excuses - well, I say shoot me down, I don't give a f**k. Its their life, they will do as they please. A lot of people listen but very few act.

I will however say this about my own personal situation though: I have made many sacrifices along the way, including working some dog sh1t hours and eating basic food and drinking water. This helped prevent me from spending money and I had no choice but to save, and save hard - It also concentrated the mind. I also sacrificed a lot of time with loved ones and friends and I have been known to shut myself away for lengthy periods of time. I can still do that today and am used to solitary conditions - I just need a laptop, my phone, internet and a very small room to operate from. However, this has allowed me to now have the freedom and time to do as I wish, and of course the money which in turn allows me to spend quality time but also fun times with those I choose.

It's important to note that one does not need money to have a great time, but I will say this. It bl00dy well helps. We're in the 21st century, not the jungle. money makes things happen, buys good healthy food, gets swift medical attention and much attractions and shopping as one can fit in as well as not being tied to a 9-5 working for others for over half our waking life.

Let me know if you have anything trading related I can help with.

Lee

 

[MrsMac]

Hi Lee,

I need trading related help - or rather pre-trading related help. Swing trading US stocks is my style, which I did in a small but regular way perhaps 10 years ago, then I got busy with work, family etc. I've got my time back now and though I have no wish to trade full-time, I want to hone my trading skills, and make some additional income doing something I enjoy and that really interests me to supplement what I have already.

I like to do my research over the weekends so I can take my time without the markets being a voice in my head, and I understand the value of planning the trade and sticking to the plan. What I'm having difficulty with is finding really easy to understand sites that I can use to do my fundamentals research. I used to use smartmoney.com and from there I could see earnings Q by Q, insider deals, in-sector comparisons as well as the usual breakdown of financials. Smartmoney seems to have been subsumed into MarketWatch and I find their info takes a lot more time to interrogate and digest. Do you have any suggestions for sites I could use?

 

[Dicko34]

Small World!

I reside between Portsmouth and Waterlooville. City life for the madness then Waterlooville (Denmead to be precise) for the quietness. About 20-30 minute drive out the city. I get to London about once a month and usually stay overnight to hit up the nightlife and meet up with others. Let me know if you can make the next meetup. By my judgement of your posts, you seem a decent guy. Shame there aren’t more like you around these parts.

Lee

Hello Lee,

Small world eh, I lived for 20-odd years in Clanfield so know your neck of the woods very well. Used to love being halfway between the scenery of the Southdowns yet still close to the South Coast/Portsmouth.

Just joined this forum as I initially found it via this thread whilst trying to clarify the whole tax from spread-betting situation and saw your take on it all. I really enjoyed reading this thread as well as your inspirational trading diary which has shown that it's entirely possible - kudos to you!

Dicko

 

[May Li]

Need advice please

Hi Lee
My name is May and i am living in Wales
I have been leaning and trading since 2014,
my problem is, i know become a consistent winning traders holy grail ,but when i come to the real trade i do not follow it,......
Many thanks
May

 

[tbone1]

Hi Lee,

Very interesting thread. Was wondering, what sort of risk:reward ratio do you look for in trades? Im sure its more nuanced than a fixed rate. But are you generally tight stop and wide target approach or a little less ambitious on the upside? Also, does this change once in a position or do you tend to set and let it run to stop or target?

Thanks