Platform: NinjaTrader, Bloomberg Professional (at work)
Favorite Futures: EN, NG, TY, Gold
Posts: 2 since Aug 2012
Thanks: 2 given,
Just joined yesterday. 40 yrs old. Have been in and out of the markets for years both personally and professionally. Have gotten a lot more interested again recently as I have built up a nice "personally created pension" of rental properties, bond funds, and dividend paying stocks that I do not consider trading capital but are now yielding a nice "almost 5-figure" income monthly. I hope to retire from my "8 to 6" within the next few years and am now staking out a good base of trading capital. My goal will be to trade to earn perhaps an extra $1k to $5k monthly (depending on what the market gives) after that point.
I do trade currently - though pretty small - just to stay sharp. I have a futures account and a few brokerage accounts and because I am not full time I like to swing trade and occasionally momentum trade using daily charts with 1-20 day holding periods. There are a few things that I like to do from a money management perspective.
First, have money committed to different types of markets most of the time. Commodities + Stocks + Rates, for example, for me allows pretty good market diversification so that if one market is not working well for me I am probably not getting hurt as much as if I were all stocks, for example.
Second, on the stock side of things I usually have some money committed to both shorts and longs but try and re-weight that based upon the prevailing market trend. For example right now I have a few shorts on (some mortgage REITS, recently initiated, and some staples names), but most of my money is on the long side. If I think the prevailing trend changes (which it may soon) then I will alter the ratio.
Finally, on the long side I like to trade 5%-15% of my capital in names that get crushed after a negative earnings surprise or for other reasons. This is a dangerous game but if you have 5 or so of these names on at any given time and trade around the positions I find it can be profitable and fun. Current list (GDOT, FTE, RMBS, CEL, KCG). For me, it is important to keep positions to 1-3% of capital and sell into rallies often.
Some indicators that I like include KASE Bars overlaid with MA Crosses (not available on Ninja, but are on BBP and TradeS) and Fibs and trendlines and patterns for targets (skills sorely lacking in youngsters). I do think there is real value in wave formations as well but I am less visually adept with waves than with trendlines and therefore typically avoid guessing.
Hope to pickup some tips here.
The following 2 users say Thank You to captnscurvy for this post:
I am happy to have discovered this site. Originally found it when someone posted about an Al Brooks webinar and I followed the link here!
I started trading some 10 years ago but I ignored most of the helpful advice I had received and struck out on my own by immediately trading the YM. In hindsight it takes a lot of arrogance to do something like that. I didn't look at it that way back then but now...wow.
After my first failed launch I gave it up for a few years and tried it again with more determination but still not common sense. I had a system which included reversing and adding one contract whenever I was trading in the wrong direction to hopefully make back what I had lost. It worked a few times until one fateful day when it went very bad and I was trading something like 25 contracts at once. I was down about $45,000 at one point in the trade and somehow got back to just $2200 down. I wasn't ready and maybe never would be.
I have read a few books since then and learned a little bit more about myself. I didn't get the normal nervousness when I opened an account this time. It didn't feel like I felt when I was younger and I would come over the hill and be in visual range of Las Vegas! No, my account has been open now for a couple of weeks and I haven't given it much thought. I set up a sim account and have only just started playing with it. I have a healthy respect for the business and plan on treating it as such. My focus is purely trading price action and am committed to learning it.
I run an internet based business that has been successful over the past 12 years but it has not been fulfilling. I am blessed to be my own boss but I now want to work with something I like to do. Something I can fall back on if the economy tanks. I look forward to reading your posts and learning much much more. Thanks!
The following user says Thank You to pricestudent for this post:
My name is cowjuice, I've been trading (current stint) for about six months now in sim;
Currently trading the FDAX (primary market) in the euro time slot on very short time frame.
At present, I am developing/working on defining 'my edge'.. the usual rollercoaster ride of finding what works for me and the process noticing other signals or confirmation to better the plan. All in all I am having progress but need to focus and 'my' plan with proper definitions and making it work consistently.
My prior trading stint was trading shares/cfd's using WD Gann strategies, end of day trading... whilst the Gann stuff is unbelievable, the EOD didn't suit me.
(and yes wiped out a couple of trading accounts in the process, but am very confident that I will crack it in time)
Once I can go live with my current system/edge, I would then like to introduce some the Gann stuff into my day trading plan and see how it goes.
My goal is to go live within three months..
Great to be part of a community which share a mutual sharing/caring attitude.
It's all about the T.E.A.M.... Together Everyone Achieves More
Look forward to growing.
The following 2 users say Thank You to cowjuice for this post:
I have been trading for about 3 years now, first stocks and then, for the last year futures. Been turned to the forum by a fellow trader because of the great 6E thread.
It has been a challenging task to enter in the world of trading. I live in Croatia, Europe and there is little to none info, seminars or mentoring for this kind of business in my country. The only way was to turn to the internet, which was a traumatic learning experience in its own right - I wanted to learn and to learn fast but self proclaimed gurus, systems that work only in backtesting, expensive seminars, magic indicators and the whole shebang got me nowhere. I started to read a bunch of books, started to keep my journal and dedicated all my free time to educating myself.
After going nowhere for 2 years and after blowing half of my account, I had a moment, an epiphany if you want to call it that way. I realized that indicators don't work and systems based on indicators cannot work. Don't get me wrong, indicators are useful but a beginner should not start by relying on indicators. It made me more harm and set me back more than anything else. I started to get rid of all the things that appealed to me as an amateur (magic systems, multiple indicators, etc.) and that's when things started to turn around for me. Common sense and price action was the answer.
Now, I am far away from a big shot successful trader and still got a lot to learn, I have been humbled by the market more times than I care to remember and I especially have to work on controling myself while in a trade, but I think I'm on the right track now.
In the meantime, I try to spend as much time with my family and just enjoy life! (In the enjoying life section, I am trying to quit smoking but a beer after work without a cigarette just doesn't seem to do it! )
A Forum like this, where nobody tries to sell you anything and where people are genuinely trying to help one another is a rare find. Thank you Mike and thanks to all of you who post on the forum.