How many markets for a newbie

Scotty2Cues

Scotty2Cues

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Hi - just starting out in trading. Would like to take the swing/positional trading route.

Will be spread betting using Trader_Dantes money making thread as a start and using prorealtime. How many markets should a newbie concentrate on, or should I be scanning as many markets as possible looking for signals, or using the news etc to determine a market. Barclays(FTSE100) and eur/gbp have been sugessted
Thanks
 
Doesn't Barclays only trade for like £3ish? Why not pick a stock lio Rio with volume and more penny volatility. 1% Barclays = 3p 1% rio =30p :)

Just asking/ I'm newb too.
 
Scotty2Cues said:
Hi - just starting out in trading. Would like to take the swing/positional trading route.

Will be spread betting using Trader_Dantes money making thread as a start and using prorealtime. How many markets should a newbie concentrate on, or should I be scanning as many markets as possible looking for signals, or using the news etc to determine a market. Barclays(FTSE100) and eur/gbp have been sugessted
Thanks
Click to expand...

TD I am sure will answer this but I think he presently looks at 12
I look at more than that but I don't really put any more trades on, maybe less than him. The markets are quite correlated so looking at more shouldn't mean you put more on, just that you have more choice.
If you were starting I would start out with maybe 4 or 6 and increase it as you feel comfortable, thats the route I went.
Stay away from the news unless you have a great news source or a Bloomberg terminal or you are focusing on stocks.
 
elitejets said:
TD I am sure will answer this but I think he presently looks at 12
I look at more than that but I don't really put any more trades on, maybe less than him. The markets are quite correlated so looking at more shouldn't mean you put more on, just that you have more choice.
If you were starting I would start out with maybe 4 or 6 and increase it as you feel comfortable, thats the route I went.
Stay away from the news unless you have a great news source or a Bloomberg terminal or you are focusing on stocks.
Click to expand...

Ok thanks. Using a basic swing strategy and concentrating on 6 markets, what number of trades could I expect to make in a month (as I have no idea)
 
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Per market you should get a trade every 1-4 days, most likely every 2-3 days.
How you manage the trade to get the most out of it is probably the most important technical skill and takes time.
 
Definitely run one trade at a time until its automatic and you consistently make money. Then slowly expand your view of markets and opportunities, and keep re-assessing how you behaved (never mind what the market did, what you did about it is more revealing).
 
Thank you for the replies!

When choosing markets to concentrate on, what sort of characteristics am I looking/not looking for?
 
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Large volume equities, indices etc. give easily read and reliable TA. But they all have slightly diferent behaviours owing to market times, differing participants, differing investment time horizons etc. If its important at all (and some TA signals and patterns are universal anyway) it really depends on how you will identify trades. Backtesting and practice will help you eliminate the weak choices here and there's not really a shortcut there.
 
I currently day trade the markets and I believe that one must slowly learn to familiarise yourself with the following variables especially in order to trade the indices proficiently

for e.g. If I am trading the FTSE 100 I utilise the following variables to confirm the move, along with technical analysis on FTSE 100 itself

1. BLT - miners are around 20% of FTSE 100

2. BP - Oil majors are around 20-25% of FTSE 100 ...Alone is 10% of FTSE 100

3. MKS - retail sector around 10% of FTSE 100

4. BARC - Banks around 18% of FTSE 100

please study this fact sheet
http://www.ftse.com/Indices/UK_Indices/Downloads/FTSE_100_Index_Factsheet.pdf

The theory is if I utilise the leading stocks in the sector I can get a general sense of where the sector is headed, thereby confirming or negating the move in either direction on FTSE 100.

I also monitor

5. GOLD - impacts miners

6. OIL - impacts oil majors like BP and SHELL

7. US dollar - impacts the price of commodities - oil and gold, which in term affect BP and BLT

8. euro - similar to US dollar but currency pairs like eur/usd and eur/jpy are a barometer of risk apetite. I study and keep an eye on these whilst trading US or UK indices in order to determine the direction of the market

I utilise technical analysis along with the study of the fundamental variables that under pin this market and that allows me to trade the FTSE 100 with a relative great amount of success

I have been giving live calls and analysis for ages
http://www.trade2win.com/boards/uk-...alls-ftse-dax-s-p-aimed-help-new-traders.html

but now I have my own website where I guide and help new traders

I hope that helps my friend
 
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