Hi everyone, i'm finally posting my first thread after many hours of lurking in the background. I actually came across this site 2-3 yrs ago and did a bit of reading back then but never took any action due to work/family committments, but here i am, back at the ripe old age of 27 to finally try and make a go of this.
I have always had an interest in finance and the markets (which is why I thought i'd do my undergrad in economics - not that it contained much about finance and the markets lol), but i suppose it's the disillusionment with my current job that has finally sparked me in to taking some action.
Now before you start thinking,' oh look it's another guy who's bored with his job and thinks he'll be able to make ££££ as a private trader"
, rest assured I am 'aware' of the difficulties that face me, even if i can not truly appreciate them yet. I see this 95% of traders fail stat being bandied about all the time, and to be honest, it does slightly intimidate me, yet I hope that with the right preparation I can be on the other side of this statistic. To give you a rough idea of my aspirations, if after 5 years I can consistently make 20% per annum on capital employed I will be delighted!
Right, down to the nitty gritty, I've been reading this site for a couple of months now (K. Lab articles, other peoples posts etc,) and i've formulated a few thoughts:
1) I 'think' i will focus on the Dow. Why? Because it offers sufficient volatility to make decent returns, but may be better for the beginner than the more volatile markets ( forex, nasdaq etc). Whatever instrument I choose, it is my intention to focus 100% on it and not trade any other instruments.
2) Day trade, Swing trade arghhhhhhhh. Not sure. I think this is something I can only decide once I start looking at the markets daily and finding out which one suits my personality. On a practical level, beacuse i'm still working full time, day trading may be out (even though I read it's possible to profitably trade the Dow 7pm-9pm after work). Swing trading may give me more time to 'think' and fit in with my work schedule, but i'm not sure, I think I would lie awake all night worrying about my open positions and whether the market will gap or not
3) SB, futures, options - well the plan is to come up with a consistently profitable strategy via observing price action, back testing, paper trading, and then trading with a small capital base (£1000) to see how I do. So I suppose once I start using real money, spread betting is my only option, though I would move to the YM if I could make consistent profits and the dow was my preferred market.
I suppose what i really want from you guys is advice on my next steps. I know I need to do a LOT more reading on TA, money management and trading psychology, but I don't want to just sit there reading. I want to be actively studying the markets and price action so I can get a feel for things. From what I've read on this forum, I am very interested in solely relying on price (and volume) without the use of indicators, and have found dbphoenix's posts particularly interesting.
So what do you guys think my next steps should be? I was thinking I should get a data feed and charting package so i can watch how price moves and just get a feel for things. There seem to be many feeds/packages out there so I was hoping you guys could give me your opinions - as it's not possible for me to continually watch the Dow, may be a package that would allow me to replay the whole day would be best?
Anyway, thanks for reading this far, and I hope to hear from you guys soon.
Zish
I have always had an interest in finance and the markets (which is why I thought i'd do my undergrad in economics - not that it contained much about finance and the markets lol), but i suppose it's the disillusionment with my current job that has finally sparked me in to taking some action.
Now before you start thinking,' oh look it's another guy who's bored with his job and thinks he'll be able to make ££££ as a private trader"
, rest assured I am 'aware' of the difficulties that face me, even if i can not truly appreciate them yet. I see this 95% of traders fail stat being bandied about all the time, and to be honest, it does slightly intimidate me, yet I hope that with the right preparation I can be on the other side of this statistic. To give you a rough idea of my aspirations, if after 5 years I can consistently make 20% per annum on capital employed I will be delighted!Right, down to the nitty gritty, I've been reading this site for a couple of months now (K. Lab articles, other peoples posts etc,) and i've formulated a few thoughts:
1) I 'think' i will focus on the Dow. Why? Because it offers sufficient volatility to make decent returns, but may be better for the beginner than the more volatile markets ( forex, nasdaq etc). Whatever instrument I choose, it is my intention to focus 100% on it and not trade any other instruments.
2) Day trade, Swing trade arghhhhhhhh. Not sure. I think this is something I can only decide once I start looking at the markets daily and finding out which one suits my personality. On a practical level, beacuse i'm still working full time, day trading may be out (even though I read it's possible to profitably trade the Dow 7pm-9pm after work). Swing trading may give me more time to 'think' and fit in with my work schedule, but i'm not sure, I think I would lie awake all night worrying about my open positions and whether the market will gap or not
3) SB, futures, options - well the plan is to come up with a consistently profitable strategy via observing price action, back testing, paper trading, and then trading with a small capital base (£1000) to see how I do. So I suppose once I start using real money, spread betting is my only option, though I would move to the YM if I could make consistent profits and the dow was my preferred market.
I suppose what i really want from you guys is advice on my next steps. I know I need to do a LOT more reading on TA, money management and trading psychology, but I don't want to just sit there reading. I want to be actively studying the markets and price action so I can get a feel for things. From what I've read on this forum, I am very interested in solely relying on price (and volume) without the use of indicators, and have found dbphoenix's posts particularly interesting.
So what do you guys think my next steps should be? I was thinking I should get a data feed and charting package so i can watch how price moves and just get a feel for things. There seem to be many feeds/packages out there so I was hoping you guys could give me your opinions - as it's not possible for me to continually watch the Dow, may be a package that would allow me to replay the whole day would be best?
Anyway, thanks for reading this far, and I hope to hear from you guys soon.
Zish
