The learning cycle for a newbie trader

[Atomised]

Im worried about the amount of money i will need to pack

Try trading demo accounts or spreadbetting or there's some account u can open with GFX i think for little or nothing. I've just traded small amounts till i got confident, it cost me a few quid but sure doesn't every course ?

[riverwalker]

Hi Folks
I brand new to this forum, so hello to anything that happens upon this rap.

I'm just begining to make a new move in my life and that's becoming a currency trader. About 10 years ago I got into options and stocks and didn't do well at all. There are lots of reasons for that but its just old history now.

I am approaching this challenge in a very methodical manner - hopefully to avoid some of the pitfall that Soul-Trader referred to. I'm putting together my plan of action over the next few week. Since I will continue to work at my job until, hopefully, I can get competent enough @ trading that I can put that behind me. So I'll begin focusing just on the USD/JPN and trade that in the evenings and Sundays.

I picked up an excellent book which I highly recommend written by a fellow named Jack Schwager called "Market Wizards". In it, he interviews super traders. Almost everyone of them that he interviewed was a big loser at the begining of their careers. I mean, they did some of the dumbest stuff that you could ever possibly imagine. So, all the discourage folks out there take heart - its all just part of the learning curve, I reckon.

I've got lots of questions and plan to use this forum to assist me in getting where I want to go. Also, if I am can pick up a few friends along the way - that would be great!

Cheers

[SimSpeed]

Originally posted by riverwalker
I am approaching this challenge in a very methodical manner - hopefully to avoid some of the pitfall that Soul-Trader referred to.

Welcome to town Riverwalker, glad to have you along. Get ready, it's going to be a very bumpy ride. Honestly...I wouldn't count on being able to avoid anything. Frankly, you'll probably be better off for it.

Good trading,

[riverwalker]

Roger that Simspeed.

Your absolutely correct, I think I benefited a great deal from that losing experience. talk about a necessary a humbling experience - that it.

I can see from reading this thread that this is going to be real interesting.

Conquering the self - some folks seem to understand on this thread real well!

[hilo]

welcome and good luck for your future trades.

you have a trading experience if i read you well, right?
as an individual? what happened? you got too much exposed in Options? was it on equities?

too much exposure on this instrument costed me a lot too some time ago...hehe! and the market i chose was not the right target neither, and a broker is a broker!!...hoping for the bundle was the mistake.

tell us how you do ok?

HilO

[RedDuke]

Soul Trader,

Thanks a lot for this post. It is worth more than a lot of books. My story is similar to Riverwalker. I lost a lot in past, and experience is the best teacher you can ever get. I have no problems cutting losses and controlling emotions. I am definitely in stage 2, not sure yet how long it will take to see the light at the end of the tunnel.

Regards,
redduke

[Soul-Trader2004]

Stage two seems to take forever doesnt it

The only advice i can tell anyone about stage two is to trade small.

My stage two cost me about £3000 - and that was on 10 pence a pip!

I found that my time trading demo was next to useless and in no way prepared me for trading so although demo trading is good for system testing its no use at all in training you to trade.

Open an oanda account with a small amount of capital, say $500 and trade at 5:1 maximum and pref lower until you show consistant profit - dont watch the money, watch the pips. Pips will take care of the money.

You'll be in stage two for ages and ages most likely, there are no shortcuts and no replacement for time.

One day stage 3 will happen - and it really does happen in just one day but you may not recognise it for a week.

Good luck on your journey

[hilo]

Paper money is one thing i did not do for long as it was excluding a crucial behavioral response that makes the difference between lasting and flaming traders -- you know what i am talking about --

System trading without this extra "feature" can turn bad once you stop paper trading.

I know for sure that when one gets out of technicals for a bit, or at least gives it a little less weight in the trading process, one can reduce the risk in a significant manner and take better decision. Technicals in the short term window have the bad habits to keep us away from the market reality IMO. as soon as i realized this and took a wider vision, it allowed me to "see" the pond with the fretting little fishes, agitating themselves with their systems...and below them you could see that slow-moving shadow....

But for sure, what ever you do, be it Tech or else :
-start small and stick to your plan. experience comes with steadiness.
-don t read too much
-follow every tick and analyse it
-place this analysis in a wider window (wk, mth, year)
-learn history and macro
-F*** Alan.