Starting Out - Need Advice - Specific Not Vague

[bstevenson]

Hi,
I am looking to start trading. I have looked into this a few times in recent years but am always put off by the amount of poor information and shysters out there. I guess Im looking for someone to give me advice, especially on getting started and to maybe fall back on when I need help.
Any advice on quality training or trading programmes would be most appreciated.
I have spent years working in Fund Management, Investment Bankng and Financial Services so I have a reasonably good understanding of markets etc but obviously I am still a novice at trading. I have been off work with a long term illness for some time now and think trading from home could be my best option.
Most of the courses and training I see offered seem like a con or a rip off - asking for large amounts of money and most of these have been bad mouthed or discredited on this site or others like it.
A lot of 'traders' on here seem to say that you really have to just learn it yourself but there must be some decent courses and/or training out there.
I guess Im looking for the 1% of genuine information while trying to weed out the 99% of guff or cons.
Really just looking for basic start up info, what is required and what is best for a newbie.
What products/markets are best to start on? What platforms/brokers are best? What equipment do I need? What software do I need? How do I find/develop a decent trading strategy? How much money do I really need to get started?
How do I go about making a reasonable montly salary (as opposed to the promises of unlimited wealth)?
Im looking for specific answers rather than vague generalisations.
I realise that everyone out there is searching for the answers to some of these questions but any help or advice would be greatly appreciated.


Thanks

Brad

ps apologies if this has all been covered before. Im sure some of this stuff will be in the First Steps section but as I said I really am looking for specifics
Cheers

 

[barjon]

You could do worse than spin through this first http://www.trade2win.com/boards/first-steps/89078-essentials-first-steps.html . It will begin to answer a lot of the questions you have.

jon

 

[brewski1984]

I don't think you're going to get someone just tell you exactly what to do and you'll start making money straight away, it just isn't that easy. There is a hell or a lot of great information on here, use the search button also. You need to put a lot of work in and find out what's best for you and there's nothing a training course will teach you that you can't find for free on here or google.

 

[bbmac]

It's very hard to be specific beacuse you have not indicated any real preferences. There are so many markets/instruments and so many trading styles that it is impossible to give specific advice. Given this limited information, the best advice may be as follows, (but only you can decide that.)

a. Have a plan, and stick to the Plan, whilst continually evaluating it.
b. Obtain/Develop a Trading Edge, understand what it is and what it's typical and maximum deviations are.
c. Understand that having and executing a Trading Edge for consistent gain can be 2 seperate things, largely seperated or brought together by the lack of/developing of a robust psychological framework.
d. Undertstand that in the absence of very good fortune, you are probably in for a marathon not a sprint.

G/L

 

[trader_dante]

Hi,
I am looking to start trading. I have looked into this a few times in recent years but am always put off by the amount of poor information and shysters out there. I guess Im looking for someone to give me advice, especially on getting started and to maybe fall back on when I need help.
Any advice on quality training or trading programmes would be most appreciated.
I have spent years working in Fund Management, Investment Bankng and Financial Services so I have a reasonably good understanding of markets etc but obviously I am still a novice at trading. I have been off work with a long term illness for some time now and think trading from home could be my best option.
Most of the courses and training I see offered seem like a con or a rip off - asking for large amounts of money and most of these have been bad mouthed or discredited on this site or others like it.
A lot of 'traders' on here seem to say that you really have to just learn it yourself but there must be some decent courses and/or training out there.
I guess Im looking for the 1% of genuine information while trying to weed out the 99% of guff or cons.
Really just looking for basic start up info, what is required and what is best for a newbie.
What products/markets are best to start on? What platforms/brokers are best? What equipment do I need? What software do I need? How do I find/develop a decent trading strategy? How much money do I really need to get started?
How do I go about making a reasonable montly salary (as opposed to the promises of unlimited wealth)?
Im looking for specific answers rather than vague generalisations.
I realise that everyone out there is searching for the answers to some of these questions but any help or advice would be greatly appreciated.


Thanks

Brad

ps apologies if this has all been covered before. Im sure some of this stuff will be in the First Steps section but as I said I really am looking for specifics
Cheers

Brad,

The reason you are going to find it hard to get specific answers is your questions are too vague.

I have attempted to answer them below but it is difficult.

What products/markets are best to start on?

In prop the traders started on the stock index and bond market Futures. The reason for this was, I think, primarily due to the opening times and the order book (while you can trade the FX futures, the cash market significantly affects it and is de-centralised).

Whether you go down the route of staring at an order book to trade depends on how much time you have on your hands. You can't get a feel for what is happening by glancing at it from time to time like you can with a chart.

It also depends what your strengths and weaknesses are.

Again, I can't answer this.

But I don't really think there is a "best market".

I personally trade FX, stock Indices, Bonds and Commodities.

What platforms/brokers are best?

For what? Best for most accurate data? Best value for money?

In prop we used CQG for charting and TT For execution. They are the industry standard. But this will set you back a lot in terms of costs.

If you want to know what the members of the site think, you can search for the T2W awards section.

If you want my view: Go to http://www.fxpro.com and open a demo account and download MT4. It is free, real time charting. The reason I use FxPro is it has indices and commodities in addition to FX.

As for the broker, again, what does "best" mean to you?

It also depends where in the world you are located. I am in the UK and use a UK based broker.

What equipment do I need?

What are you looking to achieve? If you are going to be a scalper, I would say you need a fast PC, ideally with at least two screens.

If you want to be an end of day, swing trader or position trader, the equipment is not so important.

In terms of services though, you need a broker and a charting package (see above) and a news service.

http://www.ransquawk.com is excellent.

How do I find/develop a decent trading strategy?

In terms of developing a decent trading strategy there is a lot of information freely available on the internet.

If you want to take a look at the strategy I have taught, click here: http://www.trade2win.com/boards/first-steps/26947-making-money-trading.html.

Google all the terms in that thread that you are unsure about.

If you want a set of instructions on the education you can expect if you were recruited to trade for a professional futures trading firm, email me and I will send it over. It is very different to that thread and focuses on short term trading but it is a complete routine to structure your learning.

And yes, it is free.

How much money do I really need to get started?

The amount of money you need to get started depends on what you want to acheive. Do you want to just learn the ropes? If so you can open a mini-account with as little as $50 and get a feel for trading.

If you want to make a living you will need considerably more. But exactly how much is hard to answer unless you know a) what you consider a living and b) how much risk you are prepared to take. And that last factor should depend on your edge which you don't have yet.

How do I go about making a reasonable monthly salary (as opposed to the promises of unlimited wealth)?

This is all dependent on your edge, your capital and your attitude towards risk.

To summarise: Your questions are too vague.

If you want to do things for free, start reading threads (try mine, try the J16 thread, maybe even try Pocrels new thread - do a search). You can also search for Timsk's trading plan template which you can fill in while you learn.

If you want to speed up your learning time, then find a mentor but be prepared to pay for most. Almost all mentors will get slated on here. Some of them rightly so but others can, no doubt, offer a lot of value.

There was recently a good thread on finding a decent mentor and avoiding scams that was written by one of the T2W team. Maybe someone can post a link.

If you do find one, contact them in person. Ask them a lot of questions so you know exactly what to expect and make sure you research them thoroughly. Google is a powerful tool ;-)

 

[DashRiprock]

hi mate

well look I am going to give VERY specific advice which you can or can not agree with. Other people here will also agree / not agree with it, and of course I may or may not be right and/or wrong.

But specifics she wanted so specifics she got!

What products/markets are best to start on?

Either stock indices or bonds, or various reasons:

1) There are futures for these markets in both the euro and US session
2) The futures are liquid enough to mean that their respective tape(s) are legitmate sources of information (legacy contracts of you like)
3) there are enough variety in each asset class for you to use the spreads as instruments/information
4) all are popular enough for you to find someone who trades the same contracts
5) barriers to entry are very little - call it $10k in an account for 1 lots or about $200 per month for data and simulator
6) all have a fair few locals/prop traders trading them

What platforms/brokers are best?

Given the contracts I suggested, you will want to go with an FCM to begin with before you can start dealing with member firms / clearers direct. As for a platform (for execution), consider these three

X-Trader
CQT TRADER (not Integrated Client)
Ninjatrader

each of these has the necessary tools for you to start trading in a professional manner. They each have their strengths and weaknesses, I'll leave you to do your own research.

(having said that, you might additionally want some charting/data analysis package, which the afformentioned software do with varying degrees of success)

As for brokers... well a brokers reputation amongst traders is a pretty good barometer of how they are to deal with (this is not always true in certain arenas, but I wont go into that here). Just search around, visit their websites, find a popular one and ask for experiences, then go with your hunch.

What equipment do I need?

Well obviously a PC, preferably a desktop. The latest and greatest chipsets and graphics cards aren't going to make trading profitably any more easier - things like your BB latency and internet reliability do. Just as a guestimate, go to dell.com and look at the 75th percentile - that will do you fine.

You might want a back up power supply, and a laptop with a wi-fu dongle for backup. Also, make sure that you have a framed/laminated/in plastic cover on fridge copy of your brokers telephone number, your account number, any passwirds or answers to secret questions you have ever given them. Also make sure that you have the number on your mobile and that it is enabled to call premium phone lines abroad.

More screens are glamarous, but tbh the more you have the more you need. The cart comes before the horse here.

2/3 screens are fine, just keep the 3rd one turned off for the 1st 6 months it'll just hinder your progress.

How do I find/develop a decent trading strategy?

Basically you follow your nose until you either find one that suits you or give up. There are resources on the internet to help you on your way, some more credible than others. There are a few books also that are well respected to give you a few ideas too.

How do I go about making a reasonable monthly salary (as opposed to the promises of unlimited wealth)?

no comment (honest answer).

 

[Trankuility]

Here's the most specific I can be, and what I did/do. I posted this on another forum but it applies here too:

1) Figure out what my strengths and weaknesses are. Both as a trader and in everyday life.
2) Figure out what I enjoy doing and what I hate doing. Both as a trader and in everyday life.
3) Brainstorm an outline for trading that plays favorably to my answers to 1 and 2.
4) Find a base method of someone who appears to be a legit successful trader and who's method meshes with the ideas from the brainstorm in 3 (not easy!)
5) Using the info from 3 and 4, create a trading plan and rules.
6) Test it. Consistently. Over and over. And observe price. Does it do what I expect it to do? What else does it do? When does it do it? Are there ways to exploit it that play to my strengths? Observe myself. How am I feeling when I trade? What level do I need to be at to trade well? Am I at that level now?
7) Make improvements based on my answers to 6.
8) Repeat 6 and 7.