Noob to trading

[SmokeTreees]

So I am a junior in college and am studying finance. Currently I am taking a "Technical analysis and trading methodologies" course and I love it. I've been trading a little in high school, just a couple different stocks, nothing crazy. Now I really want to take trading seriously and learn as much as I can. I have 2 main questions. First, I really don't know which markets I should study / trade in. Can anyone recommend certain markets for a beginner to get involved with? Second, what should I use to trade? Where can I find a low commission rates? Currently Fidelity charges me 7.95 per trade. I want to be serious about trading and with my capital I need to find low commission fees. I'm not sure how frequently I will be making trades yet but either way I need to save money on fees lol. If anyone can also recommended websites or short books about the different markets and such that would be great. Your input is appreciated. Thanks.

 

[nile_croc]

So I am a junior in college and am studying finance. Currently I am taking a "Technical analysis and trading methodologies" course and I love it. I've been trading a little in high school, just a couple different stocks, nothing crazy. Now I really want to take trading seriously and learn as much as I can. I have 2 main questions. First, I really don't know which markets I should study / trade in. Can anyone recommend certain markets for a beginner to get involved with? Second, what should I use to trade? Where can I find a low commission rates? Currently Fidelity charges me 7.95 per trade. I want to be serious about trading and with my capital I need to find low commission fees. I'm not sure how frequently I will be making trades yet but either way I need to save money on fees lol. If anyone can also recommended websites or short books about the different markets and such that would be great. Your input is appreciated. Thanks.

Noob,

Welcome to trading! I would recommend starting out in trading equities. Don't bother with leverage or leveraged instruments, no matter how alluring they may be, ESPECIALLY OPTIONS. Do not try daytrading either. Only risk tiny amounts until you know what you're doing. Use stops, obey your stops, stick to your stops....and did I say to use stops? Protect your capital at all times!

Good books for beginners: "How to Make Money in Stocks," by William O'Neil. "Stan Weinstein's Secrets for Profiting in Bull and Bear Markets" is also a good one.

Good broker: Scottrade is excellent. I've used these guys for 20 years and never had a problem.

Happy trading!

 

[timsk]

Hi SmokeTreees,
Welcome to T2W.

Given the course you're taking, you might like to compare what you're taught with the info' in this Sticky: Essentials Of Technical Analysis Let me know if there are any major clangers and I'll amend it!

Also, check out our Trading FAQs forum, these two ought to help answer the questions you raise about which markets to trade and which brokers to use:
Which Should I trade - Stocks, Futures or Forex etc.?
Can You Recommend a Data Feed, Charting Software & Broker?
Enjoy!
Tim.

 

[timsk]

I would recommend that you learn and stick to forex just like majority of the traders here. Trading currencies is easier and maybe more profitable.

Hi bigboyfx,
The only part of your post that I agree with is that the majority of new traders appear to trade Forex. Whether or not that's a wise decision on their part is very much open to debate. The idea that Forex is in some way easier and possibly more profitable is a myth perpetrated by those with a vested interest in newbies (and everyone else) opting to trade the Forex market. If everyone made easy money - and more of it - trading Forex than say equities as nile_croc (above) advises, or indices, or any other market come to that - then no one in their right mind would trade these 'harder' and 'less profitable' markets. If you can provide solid evidence to support your claim, I'll gladly retract my comments, tender my apologies and, most importantly, stop trading indices and start trading Forex!

Tim.

Mods:
I see you've deleted the post by bigboyfx which I quoted a sentence from as it appeared to advertising a broker. (At least, I assume that's the reason?) May I request that you let my post stand as it attempts to address a popular myth that many new traders have when they first consider trading. Thanks.

 

[TheLastBear]

Hi bigboyfx,
The only part of your post that I agree with is that the majority of new traders appear to trade Forex. Whether or not that's a wise decision on their part is very much open to debate. The idea that Forex is in some way easier and possibly more profitable is a myth perpetrated by those with a vested interest in newbies (and everyone else) opting to trade the Forex market. If everyone made easy money - and more of it - trading Forex than say equities as nile_croc (above) advises, or indices, or any other market come to that - then no one in their right mind would trade these 'harder' and 'less profitable' markets. If you can provide solid evidence to support your claim, I'll gladly retract my comments, tender my apologies and, most importantly, stop trading indices and start trading Forex!

Tim.

Mods:
I see you've deleted the post by bigboyfx which I quoted a sentence from as it appeared to advertising a broker. (At least, I assume that's the reason?) May I request that you let my post stand as it attempts to address a popular myth that many new traders have when they first consider trading. Thanks.

I agree with you Tim when it comes to the myth started about forex trading. I am getting sick and tired of those claims that forex trading is easier or simply or the no knowledge needed to profit. What is even more surprising to me is that so many newbies fall for that.

Seriously, we all used to be newbies once upon a time. I never feel for that. Common sense should tell you otherwise. The rewards a great and I enjoy them to the fullest, but it was a lot of hard work to get there.

Forex trading as well as any other form of trading is simple, but not easy. There is a big difference.

 

[Splitlink]

Not easier, just an alternative.

 

[PollyM]

So I am a junior in college and am studying finance. Currently I am taking a "Technical analysis and trading methodologies" course and I love it. I've been trading a little in high school, just a couple different stocks, nothing crazy. Now I really want to take trading seriously and learn as much as I can. I have 2 main questions. First, I really don't know which markets I should study / trade in. Can anyone recommend certain markets for a beginner to get involved with? Second, what should I use to trade? Where can I find a low commission rates? Currently Fidelity charges me 7.95 per trade. I want to be serious about trading and with my capital I need to find low commission fees. I'm not sure how frequently I will be making trades yet but either way I need to save money on fees lol. If anyone can also recommended websites or short books about the different markets and such that would be great. Your input is appreciated. Thanks.

SmokeTreees

Study the largest markets, taking the largest data samples you can find, apply the standard indicators/systems to start with, and learn how to thoroughly backtest them so you can put everything into perspective. Take a look at the thread I did a few months ago on Calculating High Probability Trades as this may help structure your initial approach.

http://www.trade2win.com/boards/first-steps/162318-calculating-high-probability-trades.html

Remember, money is tokenised energy, and energy traces natural paths which do not always fit in nicely with some mechanical aspects of human wants. Patience is one of the most important things to learn once you have done your research and set out your stall, as eventually it will realise the return.

 

[duderex]

Get to know the market and what it is about first before you learn how to trade. Learn the two popular types of broker: ECN and STP broker. After that, learn from Babypips forum where you can learn the basic theory of trading.

 

[Rambo35]

Get to know the market and what it is about first before you learn how to trade. Learn the two popular types of broker: ECN and STP broker. After that, learn from Babypips forum where you can learn the basic theory of trading.

That is some good advice

 

[money_13]

Where can I find a low commission rates? Currently Fidelity charges me 7.95 per trade. I want to be serious about trading and with my capital I need to find low commission fees. I'm not sure how frequently I will be making trades yet but either way I need to save money on fees lol. If anyone can also recommended websites or short books about the different markets and such that would be great. Your input is appreciated. Thanks.

$7.95 is a rip-off. Try Interactive Brokers.

 

[timsk]

That is some good advice

I beg to differ Rambo!

He can get all the help and advice he needs here on T2W. Babypips has its merits I'm sure, but its focus is solely on Forex. The OP has made clear that he hasn't decided for sure which markets to trade yet and, moreover, thus far he's tentatively moved towards equities rather than Forex. As I and other members have pointed out, Forex isn't the fast track to easy riches that it's so often portrayed as being.

If you or duderex care to put forward a clear and logical argument in favour of trading Forex in preference to other markets - that would be helpful. Additionally, if either of you are then able to explain how Babybips can help in ways that T2W can't - that would be especially helpful - to me as well as the OP.

Tim.

 

[Rambo35]

I beg to differ Rambo!

He can get all the help and advice he needs here on T2W. Babypips has its merits I'm sure, but its focus is solely on Forex. The OP has made clear that he hasn't decided for sure which markets to trade yet and, moreover, thus far he's tentatively moved towards equities rather than Forex. As I and other members have pointed out, Forex isn't the fast track to easy riches that it's so often portrayed as being.

If you or duderex care to put forward a clear and logical argument in favour of trading Forex in preference to other markets - that would be helpful. Additionally, if either of you are then able to explain how Babybips can help in ways that T2W can't - that would be especially helpful - to me as well as the OP.

Tim.

I did not meant to imply that forex is the fast track to riches. It is as complicated and complex as any other financial market. You are also right that BP is geared towards forex trading. I am not saying one is better than the other and think it depends on the trader. Some excel at equity trading, others in forex.

 

[resistance]

Guys when we talk about noob in forex then babypips is the better choice. The reason is that they have a very organized course called school and if a noob go through that school, he will be having good ideas to start real time trading.

 

[Rambo35]

I think different 'noobs' will respond to that different. Some will prefer babypips, others will prefer this forum and others will go with a different choice.