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What happened. Trader get kidnapped?

Nahh I was going to do a blog about what it's like to be a trader then realised that given the lack of Black Faces on the trading floor it might be due a lack of interest within our community, what with dancing with the devil and capitalism and all that.

Black people want to hear about making money regardless. Gambling in a bookie shop or on the stocks and shares. Whats the difference?

Hi Dada

I'd be interested in what you have to say, are you still planning to take this forward?

Money, risk, trade managment from the floor on behalf of an institution must be very different from those of us who are looking to do things via an online platform. Your perspective from the floor would make for an insightful comparison.

Peace

Hello AfricanbyNature,

I trade on my own account not other peoples money.

How comes you've only made two posts? Are you somebody else in disguse

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Hi Dada

I have only 2 previous posts because that represents my input to date on this forum. As a newcomer, I find your second question irritating so I'll leave it there.

Good luck with your trading, I hope you start earning what your looking for sooner rather than later.

Yep, the book you mention is highly respected as is its author; Edwin Lefèvre. Amongst others, New Market Wizards by Jack Schwager is also highly thought of, have you read it?

I'm still using a simulator for IQ trader, however I am also trialing the demo for Ninja Trader using free live market data from Mirus Futures 'Zen Fire'. Mirus allow prospective Ninja Trader customers access to free data for a month.

Just out of interest, why did you decide to trade via a firm rather than from home, given the costs from trading at home is far cheaper.

I'm looking to trade Corn and S&P 500, planning to open my account next week, at present absorbing a bit of fundamental and lots of technical analysis related stuff. Are you mainly a technical trader, perhaps you can share some info on set-ups and triggers to enter into trades.

Either way, youv'e made a good start, keep on keeping on.

Best

africanbynature

Africanbynature,

Well I am impressed.

The software platforms you mentioned I am aware of but have not seen or used.

I read Market Wizards many years ago before I know anything about trading, and have read Schwagers "The New Market Wizards" twice some time back.

Two other very good Books (three really)

1. "The Disciplined Trader" by Mark Douglas

2. "Trading in the Zone" by Mark Douglas

The first takes some time to get used too, but are highly acclaimed.

3. "Out of the Pits" by Caitlin Zaloom is a not very well known book but very very good in her descriptions of Traders and the Necessary mindset of a trader. Highly reccommended.

4. Finally a little known but highly reccommended DVD called "Open Cry" A Film by Jon Else an ITVs production.

In regards to costs on a Trading Floor, well you are right. The costs are very high. I started out trading from Home, and was doing very well on the DAX and the EURO\USD. And will probably return there or set up an office with a Business Partner.

On the Floor we all trade "Spreads" in fact Spreads (or Pairs) are seen as outrights as the standard type of trades are Butterflys (Flys) and Boxs ( Four Spreads 8 Contracts) the obviouse issues with that are the Commissions fees, but the risks of the Market running away from you are less, and you have more options in legging in and legging out, which having traded before and only doing pure Outright positions takes getting used to.

The trading platforms are based on Trading Technologies and E-Signal for the Charts.

Technical Analysis is used but I am training myself on pure TAPE READING techniques based on Wyckoff which simply focuses on Price and Trading Volume.

Corn sounds interesting likewise the S&P I would advise to use real money , small size over simulator as the Markets are really based on Emotion more than anything and without it it can leave you with a false sense of the activity, by all means practice to smooth out trading execution and iron out fat fingers.

Today had my worst Day thus far in the professional environment. Simply overtrading. It's easy to do. Basically sitting in front of a screen all day can be boring and it's tempting to place a trade on for the sake of it before you know it your scalping your way to poverty!!!!

Patience is a BIG virtue in Trading, as Jesse Livermore said. It's not brains but Patiences that gets you money.

I hope this was not too technical for general consumption.

Hi Dada

The first 2 books you mention are highly thought of, never heard of the 3rd before.

I generally check out trade2win for book recommendations, actually I have found the board very useful for things trading related. Elite Trader tends to be alright too, although it does have more of a US bias. If you know of any good trading related boards, please do tell.

Initially, as I don't intend to do any more than 3 contracts per day, I'll only be focusing on outrights. I concur with you about initially trading with real money, small amounts and emotions, I'm just not quite there yet, by 2nd or 3rd week in September I hope to be better set.

First things first, I'll open an account next week, paper trade with live data for a little while so I have a feel for the platform (IQ Trader) in relation to the market. Back test my stratergies on the platform so I can analyse performance/ profitability ratios, only thereafter, if my performance is good enough, will I take a view about going live. I've been preparing since mid Feb, so a few more weeks won't hurt.

So what sort of commissions can one expect to pay round trip when trading through a firm. I'm going for a UK based broker, their charging $4.50 round trip. I know the US based brokers are far cheaper, however I'm confident about the UK governments private investors gaurantee of funds up to £48k, I know many US based brokers are registered with the US government equivalent, however so was REFCO before it went bust, we all know what happened to investors who had funds held by them. For now, defo prefer to keep my funds in the UK with an FSA registered broker.

My main focus is on price too, using candle sticks, sup & res and pattern analysis, however I will be backing it up by using some moving averages, RSI, ADX and MACD indicators. The aim is to keep things simple and uncluttered.

Sorry to hear you had a bad day, I hope you are stronger for any lessons you were able to take away from the experience.

I'll echo your sentiments regarding patience, combined with discipline to stick to ones trading plan, that should help to keep most in the game.

Peace

africanbynature

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