This is the beginning of what I hope to be a rewarding journey.
Where am I starting from.
I have been interested in the market since I was at least a teenager. Before the internet I would read books and look at the market when I had the chance. I opened an etrade account in the late 90s. I had success trading stocks but did not have the capital to make big advances. In 1999 I bought a stock for 1 dollar and within a couple of months it went to 2 dollars. I sold and was very happy. That stock went to 94 dollars within a year. That was the last trade I made for years. At that time I began to buy real estate. It was an easy way to leverage money. within years my net worth climbed to 650k. During that same time I continued to trade stocks with my 401k. I have always been able to see the dips in the market and have made great profits using index funds and timing the market. When the 2008 recession hit I also seen it coming but had all this real estate that I was sitting on. I stock piled cash and held on for the ride. Although I did not lose it all I could have very easily lost the shirt off my back. the real estate I could not easily sell but my mutual funds I simply pushed a button and it was put in to a stable fund. So during all that I doubled my fund value and halved my real estate value. The lesson I learned there was that liquidity is a wonderful thing.
Fast forward to 2014 after picking myself up and dusting off. I am back to the market but this time I am hopefully a little wiser. I have been slowly getting back into market training. The passing of my father a year ago has delayed me but I am ready to get back to the grinder. I have changed jobs and am organizing my life so that I will have 2 to 3 days off a week during market hours.
Where am I going.
My end goal is of course is to learn to trade to a level that will replace my current income. I also stand to inherit a substantial sum of money in the future so I have a responsibility to learn investing on all levels. I believe that if I learn the market at a micro level it will serve me to understand the big picture as well.
As of now I understand that it will take a long time to become a profitable trader. I always over study things before I go out and try them for real. My goals are crude at this point but I will write them down for future reference.
1. learn to sim trade as soon as possible.(1 to 3 weeks)
a. learn ninjatrader sim trading(1 week)
b. develop crude indicators based on knowledge I already know and reading forums(3 weeks)
2. learn the financial side of day trading(2 to 8 weeks)
a. how much is needed
b. what are the costs(platform, data, trades)
3. What will I trade
a. at this time ES seems to be the answer
my advantages:
1. Financially stable
2. at least 2 days a week for real time simulation
3. I see patterns that most do not
4. prior experience trading
5. Very technical with prior programming experience
6. after sifting through all the data I usually come out with the simple way to accomplish a task
my disadvantages:
1. Emotions
2. I always over analyze everything
3. I can get discouraged
What I have done the last month:
1. At least 20 hours a week searching for the answer.
2. within the last week I have found Big Mikes forum and have moved forward more than the last month in the last few days. I believe this is the environment I can learn from.
What have I done tonight:
1. 4 hours learning ninjatrader. learned to sim trade the ES. Sim traded indicators I know and came out $87.5 to the good. I am hooked.
2. started my journal.
The beginning
The following 8 users say Thank You to staythecourse for this post:
Wow, reading your post is like reading my own experiences, with just a few circumstancial differences! amazing how similar!
I got started as a teen in the early 1990's,
Quit for awhile until 2000 when I put in a couple trades but stopped.
My dad died in 2010, but from 2000 to 2012 my career kept me "busy" but profitable (as a programmer)
Picked up some really solid cash the past two years
got back into trading at the start of summer, my goals were all the same as yours.
Your advantages and disadvantages are exactly like mine when I started, word for word...
A few things I've learned over the summer that you might find helpful to speed you up and to slow you down.
1. When you think youre ready to stop sim, don't, prove to yourself you really get it by trading sim with live data until you are really profitable, don't rush it.
2. Try all the various methods, see which one works for you best:
PAT-Price Action Trading
Swing trading
Chart indicator trading, I like Fibonoci retracements and extensions
3. There is no perfect indicator, mixing and matching is best, often this is referred to as confirmation. Dont overload on one type of indicator, I found MacD to be the better indicator over stochastics, for example, but they are correlated, you dont get much out of using them both. They are also both moving average indicators.
4. Human behavior repeats itself, the market is all about human sentiment. From a flat day to a bull or bear day, its all about human reaction
5. Some human reaction is more powerful, for example, the market moves when big traders react. Its still human reaction, but just of a different style, attitude and plan, study what the Pro's do, they often do the reverse of what the retail traders (us) do.
6. Consider a trading club, room, or chat. Big mikes is pretty good as far as that goes for after- or before- market discussion, but during the trading day, reach out to live discussion, it helps you see things from difference perspectives, plus it can be social too.
-Dont make trades based on what someone says in a chat/trade room, if you get a tip, prove it out using your indicators first. Even if a trade caller is 100% right, it leaves the power outside of you and you're just a sheep and dead in the water if that person goes away, be self-sufficent.
7. program a NJ trading strategy. Even if you don't use it, the learning alone has awesome results in what you learn by doing it.
Anyways, thats my 2 cents, hope these are helpful to you!
-Zx
The following user says Thank You to Zxeses for this post:
That is amazing that we are that similar. I am usually the odd man out of the bunch. Thank you for the advise, I will use it. Would you mind if I ask a question or two along the way? Then once I get caught up with you maybe we could help each other out.
Congrats on the journal and step forward and also on becoming an elite. Before I came to futures.io (formerly BMT) I struggled with trading. After I have made the turn, created a method that works for me, and connected with other traders who continue to challenge and expand my understanding of trading and the market.
I highly suggest looking around and exploring the forum there are quite a few gems to be found.
The following user says Thank You to tturner86 for this post:
Sure thing STC, I will be glad to help out where I can, drop me a Private Message when you've got questions, or I can just give you my email address and we can chat away!
What I have studied the last 4 days:
1. Ninjatrader
a. Market replay(having some issues with data display)
b. Simulation
c. Importing indicators and researching indicators
2. Elliot wave
a. Have watched many videos
b. Looked at charts and tried to see the patterns
3. Fibonacci
a. Have watched many videos
b. drawing on charts with ninjatrader
4. emini-watch (I like barrys style)
a. I have watched 75% of videos and went over most of the web site
b. His better indicators seem to be "better". Do I spend the money?
1. I will study more before making a decision.
Goals: continue to study more of the same.
Scan the forums for information and insight
more proficient with ninjatrader
become fluent with Fibonacci
notes: beginning to see a path through the forest.
The following user says Thank You to staythecourse for this post:
I have emini-watch's indicators. But frankly I have long since stopped using them.
I tried to keep the pro-am up, but later on just didn't keep them on my latest
templates (NT). Besides if you watch his videos he only goes for 2pts on the ES.
And his methodology after all these years is still fuzzy at best. either he is more of
a vendor of indicators or he is simply not teaching his style of trading comprehensively
even for those customers who have his indicators.
so having read your nice intro, I would suggest continue on with your great outline of goals
and see if you can get consistent with the free indicators and/or price action ideas first.
and here are the "famous" 38 steps of trading. you sound like a successful hard-working
professional so I would bet you will be diligent in your journey, yet there are several pitfalls
for every aspiring trader, good luck:
1. We accumulate information--buying books, going to seminars and researching.
2. We begin to trade with our 'new' knowledge.
3. We consistently 'donate' and then realize we may need more knowledge or information.
4. …
The following user says Thank You to Cloudy for this post:
I continue to study.
I am sim trading at least 1 hour a day using market replay while trying out all the indicators I can to
get a feel for how each one works. I have been able to reach or exceed my goal of 20 hours a week
of learning/practicing.
Thoughts:
1. From reading the trading journals and forums I get the feeling that everyone has his/her own
way of learning/trading.
2. I will have to invest more time to speed this process up. I should be able to do this during the winter months.
3. I think the sim trading with ninjatrader is the best tool for learning.
4. It will be a long time before I am comfortable with all this information I am pounding in my head.
5. Organizing my education is going to be a priority before long. I sometimes let myself go from article to forum to video and end up getting confused with all the information.
Questionsfor myself or anyone that would like to answer)
1. What are the differences from sim trading to live trading?(commission, emotions etc.)
2. I am profitable about 60% of the trades sim trading. How much will that drop in live trading.
1. if you keep sim environment identical as live down to the number of trades then only the diff is emotion.
2. all depending on how much you can control your emotion.
The following user says Thank You to cory for this post:
Now that I am live trading (again, will exp more later) i have to agree with cory 100%, its all about controlling your emotion. Your sim trading, once translated to live--will drop to 0% unless you get the number one issue under control.
The following 2 users say Thank You to Zxeses for this post:
I continue to study and hopefully learn. I have been able to get 20 hours a week with at least one hour of it sim trading as planned. Dreaming of charts has become a regular occurrence. This is a good sign, it is part of my learning process to become obsessed with the subject.
At this moment I believe that price action will be my main focus. While focusing on price action I want to know the overall trend, volume, and when the large and small trades are placed. I am not sure how I will get this data but this will be the foundation of my system.
Up to this point I had the mind set that I have to figure out my own way of trading. From now on I will be learning how everyone else trades. What they are thinking, what they are watching, When they trade and for what reasons will determine my trades.
while sim trading I am not worried about profit or loss at this time, but rather how to get into a "zone" with the market. This will require, at some point in time, that I sim trade with live data.
Back to the lessons
The following user says Thank You to staythecourse for this post:
This is my chart for today. I do have a strategy/rules although it is a work in progress.
Here are my rules as of now.
1. Always know the trend of the market. I do not always trade with the trend because on some days I can see
Highs or lows that the market bounces off of and use those as trading points. There has only been a couple of days
That I trade against the trend. I understand the importance of following the trend.
2. I set up my ATM to set a stop loss at 6 ticks and a gain of 6 ticks. I will never move my stop loss but will move my
exit if I think I am in a run.
3. I will trade until I have 3 + trades or 3 - trades. not less than 3 trades and not more than 6 trades for the day.
That is really it for rules at this time.
Is this working for me? Yes, I have had only 1 day that I stopped with 3 trades that went against me.
I continue to try different indicators but the only one I keep on my chart is MACD. I think the only reason I keep it on is
because I have used it with stocks for so many years. It does work with the ES as it does with stocks for me.
Today there was a slight upward trend. the resistance to the upside was clear to me so I went with it and it worked for all but one trade.
I made 4 trades today. All markets down today so I looked to go short and it worked.
First trade was over 3 points, I caught a good run and removed my target. When I was exiting I had a pilot error and hit reverse but closed it immediately. I have had many pilot errors, hopefully I will get better as a practice. This one only cost me a couple of ticks but I have had a couple that would have been very costly had I been live.
second trade I jumped in on a run downward and hit my target.
Third trade hit my target but did not fill, then it went to my stop.
fourth trade I seen more to the downside with a couple of strong red bars. After the dip I set my sell at 44. It filled and quickly hit my target.
I use jigsaw tools and wouldn't dare trade without them.
We are analyzing data and that piece of software will give you the data necessary to make solid decisions.
I hope this helps and good luck.
Rgds
switchtrading
The following user says Thank You to switchtrading for this post:
Cumulative Delta is simple and will align nicely with your MACD. When they confirm each other, odds are pretty good your on the right side of the market at that moment.
Be Patient and Trade Smart
The following 2 users say Thank You to trendwaves for this post:
Today I only made 2 trades. I was looking for the trend to be down.
First trade I got in on a double bottom. It did not move like I thought it would so I moved my sell to 4 ticks instead of 6. I filled at the 4 ticks and it did move on for more.
Second trade I got in at the resistance and was filled at my 6 ticks.
After that I could not get in synch and did not find an entry. I decided it would be best to end with the 2 trades rather than make a trade that I did not feel comfortable with.
First trade: read my chart as resistance 58 and support 56. Went for a short at 58 and removed my 6 tick limit.
Was not the best entry, bounced around 58 for a while then went down to 56 and I closed.
Second trade: I got back on for a long a 56.5 thinking it would go back up from 56. I almost got stopped out but did not. I got back in too soon. took my limit off and waited until 58 was reached. I was hoping it would go to 60 and took the chance when it dipped again. It worked and I closed when it went sideways at 60.
Third trade: It started back down after hitting the resistance. I got back in and it went straight down to 58 I waited to see if it went passed, it did and I got out at 56. Pilot error again and had to close fast.
I hit the support/resistance great today. I am having beginners luck but I will take it.
First trade: I waited I while to look for S/R points. It made some long trending moves and hit a resistance point and started to go sideways so I went short looking for a reverse. It went 2 more points then reversed so I was stopped out at my 6 ticks.
second trade: It reversed to the same S/R and I thought it would go lower so I shorted again. It just hit my target but did not fill and reversed. Then I thought I moved my limit down below the 6 ticks but removed it and lost 3 points before I got out of it.
third and fourth: both of these I was in synch and hit my target fast.
Fifth: went just down past another S/R line, I shorted and it went sideways then up to stop me out.
I just missed the first 2 trades and the pilot error would have cost my had I been live. both will come with more practice.
The discipline to manage the trades will not be a problem. building a system and becoming my own expert will take some time. I know I want to keep my system simple. Know the market, Trend, PA, and Volume So far.
I have been concentrating on my live investments for the last 2 weeks(up 10% last week). I have continued studying price action and sim trading. Most of my time i have been reading Al brooks books, articles and watching his videos. I will concentrate on learning price action for the time being.
Last week i got a live demo account from AMP futures and will start sim trading with it this week. This week I will also start to open a funded account, 2 to 3 week timeframe for this. I am still not clear how to go about opening the different accounts. Ninja will be my platform but I am not sure about the broker and data yet.
I continue to be addicted to learning this. I am 3 months into learning to trade futures and I always want to learn more and more. I think about it all day and dream about it all night. One thing I understand is that I will learn so much more when I go live. Cant wait!
The following user says Thank You to staythecourse for this post:
I have been practicing with the live demo account and doing good.
I have put in an application for a live account with Ninjatrader as my broker.
My swing trade with TQQQ is the most profitable trade to date.(up $7100 to date) I have my stop set at 5% so
I am beginning to feel a little more comfortable with reading the charts.
It will be interesting to see what problems I run into when I go live. I have learned a lot from swing trading the Qs
and my index funds over the years. As of now I think it will be the same emotions with ES just to a lesser degree.
Here is todays trades with the live demo.
4 trades. 3 good with one stopped out.
The following user says Thank You to staythecourse for this post:
for myself or anyone that would like to answer)