Questions from a Newbie!

[soosta]

How do you visualise yourself with trading ? I mean whats your ultimate ambition with it ? do you know that yet ? 1 hour a day and I assume thats just the trading opportunity window (your window of availabilty /opportunity may well be going against the grain of Market opportunity, ie dont expect the market to be moving (volatile) just because you are in your allocated time slot they become volatile at price/activity points not just because its something o'clock etc.)

What timeframe do you need to be working in ? some of the spreads with Spreadbet firms will be too wide as a percentage of (likely perceived ) market range if you are considering very short term trades within the hour. If its a fixed hour then I would suggest you look at trading the open for movement as the best senario for your position can you be available for an open ?

That 1 hour a day is it a fixed time ? what time is it ? what markets are you looking at ?

Study psychology get to know about ego's and how we form our belief systems.

If you want to treat it as a hobby....... then it doesn't matter if you dont make any money right ?people pay money to enjoy their hobbies ,just enjoy.

There is a lot to learn ,unlearn and experience probably equivalant and beyond studying for a degree, are you giving that 1 Hour a day ? what would "most likely" happen if you did 3 years of just 1 Hour A Day at Uni Pass or fail ? No shame in it just most likely outcome.



jd

Right my ambition in trading is to grasp basic knowledge and develop a strategy over my three years at university. Once Ive left (with a first!) I want to be employed as a trader for a few reasons. One, I want the excitement of working with others in the markets and other social aspects. Secondly, to recieve training from experienced traders and also be given the chance to learn new things. I intend to do my FSA exams before looking for work, this I hope will give me an edge over other grads who have no knowledge of trading let alone qualifications! After this I want to branch off into being self employed and maybe work for a prop house (again to keep the social aspects in tact). Then as I get older trade from home. I know it may be strange fo me to be able to map out such a large amount of time but it is really what I want to do. I however do not assume that I will succeed in any of this and have no idea if I will be any good as a trader or not!

I said it would devote one hour, three to four days a week as an example. This hour could be two, could be three and at any time night or day - it isnt fixed. I do not however intend to day trade due to my inability to screen watch for hours on end and also the fact I will be studying for a degree at the same time! I will therefore hold positions for days at a time. I am also under the impression that due to the wide spreads of SB'ing there is relatively little money to be made from intra day scalping UK/US stocks. Is this true? I have no intention of focusing my energy on any other instruments at present. From what I have read here and been advised I should be looking at trading UK/US stocks with an average true range <50 to get started due to the relatively low volativity. I am obviosuly aware that past trends of shares may not necessarily map out future movements. I am aware of money management and the need to be cautious and not over risk. I understand the basics, resistance and support, stop losses etc. I will be trading initially at say 50p/point and will have a trading plan prepared.

I am not treating this as a hobby however much I am interested and enjoy researching the subject. As with many I do intend to make money however small at first. I am reading various beginners books on spread betting and also technical analysis and have printed out numerous articles from this web site (which are very useful).

I think that is all! What do people make of what I have said? Opinions/criticisms? As I have said I only have a basic understanding of what I am embarking on but I will not go live without being prepared. Any comments are very welcome.

Thanks.

 

[Anonymous]

A bird without wings cannot fly, a long distance marathon begins by putting one toe forward.

 

[soosta]

A bird without wings cannot fly, a long distance marathon begins by putting one toe forward.

Indeed. However a man without a plan is doomed from the start!

 

[sp1]

I am going to try with this one last time.

Supposing you visit an art gallery, and supposing you are shown a very large and complex painting.

Suppose you walk right up to it and put your nose 3 inches away from the canvas.

What do you see ?

Not very much.

Now suppose you now take several steps back and look at it again.

What do you see ?

You are able to see all of it , and are able to look at it properly.

The conclusions you may now derive could be competely different.

Hello Socrates,

Would part of the "stepping back" be looking over longer time frames like generations to see how the plans, ploys and exploits of various market participants have fared. TO inform ones big picture.

You often say "its a war for profits" as as it is (and i think so) a market axiom.

So does (as i think so) "Every thing is fair in war" follow as another market axiom?

Kind regards

Sp1

 

[jsd]

Is it necessary to spend 3 years at Uni ? what do they teach about trading ? Im sure they give you the opportunity to show discipline by actually doing the course for three years but what is the paper worth ?
or do you see it as just a door opener ? can you not turn the handle a different way. perhaps showing three years of solid trading results. Wouldn't that put you ahead of other grad wannabe's ? I dont know. any one with any info ?
socially trade via an arcade.?

jd.

 

[soosta]

@ jsd

Definately a door opener. Im sure many firms would be willing to take on and teach someone who already has trading experience without a degree but I would like a degree as security. Maybe I wont succeed at trading and will therefore rely on the qualification to enter another industry.

What do you think about what I have said above with regards my proposed trading activity/study over the next 3 years?

 

[jsd]

Hello soosta, studying degree sounds like a good option to cover different plans outside of trading. I would just be on the look out with regards mental /emotional states that you may well encounter once trading, and its possible effect on you whilst you are studying at Uni. If you read up on trading psychology you will become aware of common psychological effects ,conflicts and wot not that you may or may not encounter. Monitor yourself, thoughts feelings and actions so that you are best place to deal with that aspect of yourself. Longer time frame trading gives you advantage? of longer timeframe to think until you get to the stage where you just do without conscious internalising.(years ?)

I would advise anyone to look at Zen philosophy to give you a very good tool for dealing with any/all emotional states that they may experience,besides a lot of modern psychology stems from eastern philosophy so its very relevant to trading and any life pursuit.


Try not to feel insecure with and in yourself if you do not get a degree, but if you already have it you'll get it .

Enjoy the trip.

jd

 

[SOCRATES]

Hello Socrates,

Would part of the "stepping back" be looking over longer time frames like generations to see how the plans, ploys and exploits of various market participants have fared. TO inform ones big picture.

You often say "its a war for profits" as as it is (and i think so) a market axiom.

So does (as i think so) "Every thing is fair in war" follow as another market axiom?

Kind regards

Sp1

Yes, this is quite correct. Absolutely.

You need to develop the ability to see beyond the picture and around it as presented, because after all a picture is just that, what it is, a picture.

The picture as presented is not everything, and therefore suffers limitations, which you, according to your perception of it, have to overcome.

This is why you need to develop the ability to see beyond it and around it.

 

[Anonymous]

Let's say you are in a game of chess. It is your turn.

You see the opponent's Queen is there for the taking, just by moving your Knight you can take on a biggie. Do you take it?

Then (if you know what this is) you think forward, if you take the opponent's Queen using your Knight, in about 3 to 5 more moves you will end up with a Check-Mate against you.

Can you take something just because it is there for the taking? Can you foresee the devastating consequences if you were to take something just because it was there for the taking?

Some people have the ability to restrain themselves, not all.

 

[GLOBAL TRADER]

Yes, Trading without a plan and not even understanding the market you are trading is 100% failure territory. Alot of traders come and go, that is life. The markets are designed to chew people up and spit them out. That is probably why people want to learn from the best and go to seminars all the time.
Even if you go to seminars and read books on trading and are an experienced trader, mentally trading may bot be for you. It is a sad fact of trading, the more you desire to win and make money from this the greater your chances of loosing. If you can do it, why not!