Preparing to Begin Trading

[underworldmagic]

Hi,

I have been a lurker of this forum for some time absorbing information. I have decided to day trade, and have set myself a goal of a year to start actually trading with real money.

I have been stock/fund investing for over 10 years, and understand day trading is a lot different to actual investing (long term investing); I believe i do have a good understanding 'base' which i can develop.

Currently i am making it a daily routine to read the financial times; from which I've learned how specific news impacts certain shares/sectors. I keep track of news on my phone via news apps. I am also a avid reader of the Economist, and Moneyweek.

I have got my hands on a few day trading introduction books that I'm reading through.


So thats my introduction.

 

[forker]

Good luck and welcome

 

[underworldmagic]

Good luck and welcome

Thank you - do you think there is anything else i should be doing or reading as my daily routine to prepare or get in the habit of doing?

 

[NVP]

Depends what you are going to trade dude ......timescales , markets ....all have different personalities and needs ......

Great to read all those publications .....but trading rarely follows the rules ......otherwise everyone would make money :smart:

N

 

[underworldmagic]

Depends what you are going to trade dude ......timescales , markets ....all have different personalities and needs ......

Great to read all those publications .....but trading rarely follows the rules ......otherwise everyone would make money :smart:

N

Thanks for your reply; I was planning on spread betting equities; spread betting because there is no tax to pay in the UK for spread betting.

I am planning on also getting to grips with charting.

 

[NVP]

Thanks for your reply; I was planning on spread betting equities; spread betting because there is no tax to pay in the UK for spread betting.

I am planning on also getting to grips with charting.

Sounds like a good plan...good luck

N

 

[tomorton]

As I understand it, if you're going to succeed at daytrading (I don't daytrade), technical analysis of the charts is key.

After all, suppose all your market research this weekend says shares should rise, but Monday you only see prices falling. And the charts say they should probably continue to fall the rest of the day. And they do keep falling. Are you really going to buy or wait for the TA to align with your market bias?

I have to recommend at least 80% of research effort into TA, no more than 20% into global economics.

 

[dianajs]

Good luck and welcome from me as well!

I agree with Tomorton, if you wish to trade it's prudent to learn some technical analysis. Fundamental analysis is a great thing, but I don't think a person should rely on it completely.

 

[zaysev36]

As I understand it, if you're going to succeed at daytrading (I don't daytrade), technical analysis of the charts is key.

After all, suppose all your market research this weekend says shares should rise, but Monday you only see prices falling. And the charts say they should probably continue to fall the rest of the day. And they do keep falling. Are you really going to buy or wait for the TA to align with your market bias?

I have to recommend at least 80% of research effort into TA, no more than 20% into global economics.

Seems legit. So, what instruments exactly would you advise for technical analysis? Any hints or something?

 

[dianajs]

I would advise to learn Elliot Wave and candlestick analysis. Both can be immensely helpful.

 

[dbphoenix]

Hi,

I have been a lurker of this forum for some time absorbing information. I have decided to day trade, and have set myself a goal of a year to start actually trading with real money.

I have been stock/fund investing for over 10 years, and understand day trading is a lot different to actual investing (long term investing); I believe i do have a good understanding 'base' which i can develop.

Currently i am making it a daily routine to read the financial times; from which I've learned how specific news impacts certain shares/sectors. I keep track of news on my phone via news apps. I am also a avid reader of the Economist, and Moneyweek.

I have got my hands on a few day trading introduction books that I'm reading through.


So thats my introduction.

Before you wander into any mazes or down any blind alleys, I suggest you set aside books in favor of studying whatever it is you plan to trade. If you plan to trade stocks, study stocks. If you want to understand charts, study charts. If you don't now how to observe or what to look for, see this post, particularly the pdf attached to the end of it.

Db

 

[underworldmagic]

Thanks for your advice on technical analysis and fundamentals. I have taken them on board.

dbphoenix - Thanks for that excellent advice and link to that thread. I found it really useful and informative. the PDF i was an excellent read.

Thanks again for all your advice.

 

[progix]

I suggest churning both fundamental and technical analysis can be helpful for successful trading. Candlestick charts are easier and helpful for technical analysis, they are perhaps the most commonly used charts these days.

 

[zaysev36]

I suggest churning both fundamental and technical analysis can be helpful for successful trading. Candlestick charts are easier and helpful for technical analysis, they are perhaps the most commonly used charts these days.

I've already heard such advice somewhere, though I still didn't get what's the right time for which type of analysis. Maybe you could enlighten me on this? :smart:

 

[underworldmagic]

I suggest churning both fundamental and technical analysis can be helpful for successful trading. Candlestick charts are easier and helpful for technical analysis, they are perhaps the most commonly used charts these days.

Thank you - I have brought Anton Kreil - Professional Trading Masterclass and working through the videos to give me an overview of trading. I planed to look into technical analysis and charting too.

 

[arigoldman]

Thank you - I have brought Anton Kreil - Professional Trading Masterclass and working through the videos to give me an overview of trading. I planed to look into technical analysis and charting too.

Would you recommend it? I think the guy is just trying to make himself popular. He even offered a chance to win a trip to Asia with him to anyone who added him as a friend on fb... He seems desperate.

 

[underworldmagic]

Would you recommend it? I think the guy is just trying to make himself popular. He even offered a chance to win a trip to Asia with him to anyone who added him as a friend on fb... He seems desperate.

I would recommend it fully. But i am a beginner, and am learning loads of things from his program. especially since he first compares professional traders and hedge fund managers to the 'home' trader (he calls them retail traders).

If your interested, i can share the videos with you, if you want to buy them for partial of the cost then just PM me.