I'm new to trading, stocks and the market and wanted to know what would be the best way to learn? My friend would like me to learn Ninjatrader, indicators and I don't know how the market works. What do you suggest?
Well lets see, first off you should understand something very important, trading is a skill, being a surgeon, a professional golfer, a pilot are also skills. Trading takes as long to learn as the above-mentioned skills -- that’s years of effort not weeks. You know you cannot just sit down and fly a plane on hunches, don’t think you can trade the same way.
Before you begin be aware of anyone selling courses. There is a lot of “snake oil” sold to new traders. I just came from a seminar and four people each signed up for $10,000 each to learn nothing at all that will help them.
A few safe places on the net that teach some things about trading and charge little or nothing.
Your broker can set you up a simulated account, which is called “paper trading”. Practice until you understand what you are doing. When you go live trade something simple and in very small values, such as an ETF like SPY and SP just to see what real trading is like, then graduate to the big leagues like futures.
Four important lessons:
There is no magic indicator, you can draw squiggles on your charts until you can’t see them any more and it will not make you trade better.
This can’t be easy, if it was somebody would already be doing it. This is a zero sum game, the only money in the market is put there by the players. If I profit tomorrow, it maybe from your mistake.
Amateurs study how to make money; professionals study how to control risk. Learn money management, it is very important. It is more than just setting stops. The voices of experience here all have “blown out” an account or two learning to trade. Tape these words to your monitor “Preserve Precious Capital”
Stay positive, you can win, but you must take your time and learn.
The following user says Thank You to cme4pif for this post:
There are three or four NinjaTrader programming "tutorials" in the futures.io (formerly BMT) webinars section. Click webinars from top of any page. There are also thousands of code examples on the forum. Read the source line-by-line on simple indicators you understand, and you will begin to understand the code that drives them.
Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.
Need help? 1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first. 2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses. 3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make. 4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance. 5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers. 6) Help using the forum? Watch this video to learn general tips on using the site.
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As noted previously, I would NOT buy any canned system right away if ever. If they worked that well, they wouldn't be the proverbial "secret". Everybody would use them.
The internet has a ton of free stuff. Spend your time before you spend your money. I've spent way too much time and money on stuff that doesn't work. I'd try to shy away from exotic indicators and strategies until you grasp the basics.
I have the book High Probability Trading Strategies by Robert Miner. I think it's pretty good. You can get it off Dynamic Traders website for about 1/2 price. Maybe $40 or so.
IMO, you really need adequate risk capital to trade. Trading tight with scared money is a quick way to ruin. Trading is hard enough without being worried about blowing out your account in a couple of trades. If money is tight, maybe trade a small account with stocks or ETF's. Keeps exposure very low. Futures and commodities are a big boy's game. Better know what you're doing before you step in.
Edit to add....go look at the forum on vendor reviews. There are hundreds and hundreds of systems there. And every one will make you a millionaire in 30 seconds. Just ask them
Last edited by Trader Chuck; April 15th, 2012 at 09:57 AM.