Newbie question.

[Andy]

Hi Guys,

First off thanks for reading my question. I have decided to give spread betting a go!
I am currently reading the stickies and can see I am really going to have my work cut out. There is going to some serious dedication if I'm to do this properly and make money. Is there anybody who has come from a place of no experience in the kind of world and built themselves a successful business? What is the time frame on the study before you can go in for real on this ? and roughly how much will I need to start? I see people have said £400 and this is obviously bs because everyone says more but i haven't seen how much. £1000? £10000? It's important for me to know now as I need to know can I afford this before I invest my time studying.
I am willing to put in the time and follow the rules to a t. This might all be in the stickies so if it is apologies. Also if there is any advice or info that is not in there please feel free to share as I am keen to make this a success and if only 10% make it i will need all the help possible.

Many thanks

 

[timsk]

. . .This might all be in the stickies so if it is apologies . . .

Hi Andy,
Welcome to T2W.

Yep, all your questions are answered in the stickies and Trading FAQs.

You say that you're "'willing to put in the time and follow the rules to a t." There are precious few rules to trading - other that the ones you create for yourself and underpin your methodology. Your ability to follow those to a 't' will, to a very large extent, determine your success. Or lack of it! Similarly, there are precious few benchmarks or yardsticks against which you can judge your progress. It's not like learning to drive where you can say that after six lessons you'll have a good grasp of the basics and after twelve lessons you ought to be sufficiently competent to pass a test. Trading ain't like that I'm afraid. In this game, the only certainty is uncertainty!
Tim.

 

[Andy]

Thanks for your reply. Ok great I will continue reading! If sticking to the rules will increase my chances of success then I will do it. I am really serious about this. I have just turned 38. I am thinking two years of learning, testing etc. Then at 40 hopefully start making some extra cash so I can work less. I know this will be work but I won't have to leave the house and can do it from anywhere :clap:.
I am also fully aware the odds are not in my favour but I think if I can really apply myself to this it is possible.

 

[Forexmospherian]

Hi Andy

I think one of the main reasons only 10% ( or whatever figure between 5% and 30% ) make it in trading is simply because they don't manage to put in the time and devotion to get to a good enough level to stay in the game.

When I started approx 12 yrs ago in FX - I was thinking after a year of two I would be well into it and that I could easily go full time after 3 yrs ( I was semi retired anyway so had time on my hands ).

Nobody had told or advised me back in those days that the "journey" was really never ending - although I will say by 5 -7 yrs you should be able to be consistent - and if you are not - then is it really for you?

Its all down to time available and your desire to keep taking hits and getting up and battling on.

Many say you need 10k hrs to be really good - but at least by 5000 hrs you should be on your way.

Therefore if you allow 10 hrs a week for studying watching charts and learning - then 5000 hrs will take you approx 10 yrs

If you can spend 25+ hrs a week - studying watching live charts and demo trading only for a start - then cuts it down to less than 5 yrs.

Think about it - to qualify to become a doctor or lawyer or architect etc takes 5 - 7 years . The myth is it can be done in all under a year is just really a total myth. Yes you will get 1 in a 1000 who might be doing really well after 2 yrs and making good consistent monies.

How long you stay on demo is really another good question. i advise for at least 500 trades - whether that is 3 months or 3 years all depending on if you are short term or swing or more investment trading.

I am sorry to appear so negative - but if you can devote 3- 7 yrs of your life doing the study and have the commitment , mindset, patience etc to get there - then the rewards can be excellent - as long as you have ideally $50 to $200k of capital to go full time.

If you never want to go full time and just want an additional income - OK - maybe you can be there after a few years - but even then to earn an extra say $10k plus per year - you may need 2 or 3 time that committed in your capital to achieve it

Good Luck - and if you really think you have a chance of making it in only say 9 or 12 months - i should stop now and look at other opportunities .

Regards


F

 

[Andy]

Wow! Lots to think about. Thanks for your honesty. I was not going to go full time but if there was any chance I was that's info has put me off. The bottom end of the start up finance I could do, I'm in the UK so it would be £30k,but not with that level of time commitment. I could do 15-20 for say three years.

Hmmm this is a reality check! Somewhere in the middle of full and part time would be a ideal goal. You are saying to make 10k I would need 20-30k. Can you just double that and say to make 20km I would need 40-60k? Hang on that puts me in full time category! Ok looks like my aim will be to be part time.
Still a huge commitment though so will really think about this.

I really appreciate the advice. You say I could be there in a few years on the part time approach. Would that still be 25hrs a week for a few years?

Thanks

 

[Andy]

I have just been looking at the 3 ducks system. I will obviously still have to do all the study but will having a system like this make things easier? Reading the thread it seems like it really works for people ( who have done there study time) .

Thanks

 

[mike.]

Hi Andy, First of all, no traders trade the same as each other, none. so yes, start with the three ducks to get some screentime in, study the price action. Take note of support and resistance areas ( read up on these ) does the price break through them convincingly or hit them and fall back ? practice , practice practice, be your own trader, you may try out several different strategies until you come across one that suits your trading style. open a demo s/b account and try to accumulate a consistent amount of pips per day/week, be it 10, 20 , 30, 40 pips per day, cut loosing trades as soon as you can, for example, if it goes 15 pips against you then get out and forget about it, stick to your strict strategy and don't let emotions( fear and greed ) make you deviate from it. There's plenty of help on here should you need to ask questions. Take a look at the live scalping thread which is quite active through the day but dont copy the trades...Do your own thing, be your own trader.

http://www.trade2win.com/boards/indices/120172-anyone-scalping-ftse-futures-7220.html

 

[Stargunner]

Trading for a Living, and Come into my Trading Room, both by Alexander Elder, were the best trading books I've ever read.

 

[Andy]

Ok thanks. Will check them out.

 

[Stargunner]

I saw in one post you wanted to do 3 ducks trading method. Elder's style is very similar in his 'impulse' method, and his 'triple screen' method also. Both of these are well known, successful trading systems. However, Elder also takes a very calculated approach to risk, and trader psychology.

 

[luckystrike23]

if you are starting out in spread betting this should be helpful as well:

http://www.financial-spread-betting.com/Spread-trading-faqs.html
and the youtube channel https://www.youtube.com/user/ukspreadbetting

 

[AfternoonT]

Trading for a Living, and Come into my Trading Room, both by Alexander Elder, were the best trading books I've ever read.

I just heard the mega trader Steve Burns say the same thing in an interview. He too takes a very calculated approach to risk - Trading Style more a long term ( over months) execution, with large gains over 2-4 trades/yr