How to get off to a quality beginning

[Harro7]

Hi,

Only my second post. I like the look of this forum and how it is setup.

Firstly, some background. I'm 21 year old university student. I have become interested in the stock market because of the media surrounding the recent global economic crisis. In such unpredictable times (in a game that relies on predictability) I have probably chosen a poor time to become interested. My mentor in learning about the market is through by grandfather who is a day trader in the futures market. He is predominantly a chartist. I would also add I have spent many years in sports betting markets - I would say this has given me a solid understanding of money management.

In my reading on topics in the Beginner's Lounge I have read about all the suggestions. I just have a few follow-up specific questions to ask:

The Beginner Question - The Learned Response - The Follow-up
1. I have no idea what I'm doing, where should I begin? - Ohh dear, read heaps and learn. - With all the ebook 200 page pdf fodder out there I would like to know what books specifically should I read? I have tried the search function so any link to a post on this site would be appreciated if I missed it.
2. How do I read charts so I can make money? - Ohh dear, read heaps and work out your own style of trading. - What styles are you referring to and where is there a succinct summary on such styles?
3. What do I need to begin with? - Ohh dear, I do not know where to start. You have to work out what suits your personality (scalping, swing trading, position trading, momentum trading, or longer-term investing) - Where are terms likes these found, what books/websites run you through these terms?
4. How much money do I need? - A lot. - What would be a reasonable minimum specifically?

My goal: To make money.
Time period: Intermediate term.
Investment: 5000.
Prepared to lose: 5000.

So I think my questions are -

What are the best websites to view?
What are the best books to read?
From the above two questions I garner I want quality rather than quantity - it saves time to avoid a lot of the tripe on the internet.
What is the best setup, you personally, have found works? What timeframe do you trade on? What information do you use? What is the source of that information?
Also, how long has it taken you from my position to adapt and become "comfortable" in buying and selling shares? When did you find a "rhythm"?
Are there any other questions I should be asking from my "fresh" position that need knowing?

Edit: I'm interested in WOW, ROC, INP, VGA, AGO, FMG. That might help you work out what type of trader I am... probably not... now that I think about it, no.

Many thanks,
another newb

 

[BentRod]

Harro...are you nuts??

Forget this Forum and Talk to your Grandpa!

You lucky Bugga.

 

[So_Cynical]

So many questions...so many answers.

Someone really should build a locked thread to explain the basics to
the new people...so we have somewhere to link them to, even if its
just an explanation of terms used and a brief explanation of trading
styles/beliefs etc.

 

[Wysiwyg]

Yeah man you`re trying to jam alot into a concise beginner to gun phase.Anyway they reckon about 10000 hours to become proficient and I am not proficient yet but here is some help.

Terminology I think is of utmost importance.If you come across a word, abbreviation or acronym you don`t understand then stop and find definition. (enter keyword ... search)


Market terminology = http://www.investopedia.com/?viewed=1

Some things to look for in a chart ....

• What stage is this stock in?
• Is this stock in and uptrend or a downtrend?
• Is the stock at the beginning, middle, or end of the trend?
• How strong is the trend?
• Where are the trend lines?
• What do the moving averages tell me?
• Was there a breakout recently?
• Is the chart "smooth" or "sloppy"?
• Are there any chart patterns?
• Are there wide range candles in the direction of the trend?
• Are there any gaps in the direction of the trend?
• Are professionals selling strength or buying weakness?
• Where are the support and resistance areas?
• What does volume tell me?

Charting made easy = http://www.swing-trade-stocks.com/support-files/chartingmadeeasy.pdf

Chart patterns = http://www.chartpatterns.com/

= http://thepatternsite.com/index.html

Candlestick charts = http://stockcharts.com/school/doku....sis:introduction_to_cand#what_candlesticks_do

Position sizing, risk/reward ratios and risk multiples are important subjects covered by Van Tharp (I have his book) http://www.moneybags.com.au/search.asp?quick=true&a=74

Others might have better books about position sizing so weigh them up.


Next helper.

 

[dutchie]

G'day Harro7

Try this

https://www.aussiestockforums.com/forums/showthread.php?t=2369&page=3


Cheers

dutchie

 

[prawn_86]

So many questions...so many answers.

Someone really should build a locked thread to explain the basics to
the new people...so we have somewhere to link them to, even if its
just an explanation of terms used and a brief explanation of trading
styles/beliefs etc.

This is a good idea SC, and something us mods have toyed with from time to time, the problem is the sheer volume of content and what should/shouldn't be included, amount of time it would take etc etc

 

[johenmo]

This is a good idea SC, and something us mods have toyed with from time to time, the problem is the sheer volume of content and what should/shouldn't be included, amount of time it would take etc etc

As a newb there are some things which could be considered "basic steps" and these could be done relatively easily over time. Books will always depend on where one wants to head but this is probably the easiest to step to cover.

I think web links could provide most of the information. Early on we don't need long detailed explanations - just confuses. A bit more than Investopedia, which is still good. For TA I like www.onlinetradingconcepts.com for it's simplicity.

One thing we suffer from (the experienced may recall this) is how we have to get past the first couple of hurdles - keep it simple, and money management.

Can sub-forums be put under the beginner's lounge e.g. books, indicators, etc, and then the relevant threads moved? Is this workable? Other forum members can put things together. I'm creating my own folder of "explanations" - like fixed fractional position sizing - that can be used by members of my family if they decide to look at trading.

 

[Julia]

Harro...are you nuts??

Forget this Forum and Talk to your Grandpa!

You lucky Bugga.

I also wondered why you're asking all these questions on here when you have your own personal mentor who can sit with you in front of the computer and teach you.

 

[beerwm]

You should read;

Van Tharp : Trade Your Way to Financial Freedom
or
Nick Radge : Adaptive Analysis

they will give you a good basis on understanding.

right now you're probably thinking everyone is crazy saying 'find your own style', but these books will make the 'suit you personally' cliches clearer.

this has been one of the most helpful threads i have found;
https://www.aussiestockforums.com/forums/showthread.php?t=13258

 

[Harro7]

I also wondered why you're asking all these questions on here when you have your own personal mentor who can sit with you in front of the computer and teach you.

Unfortunately I only get to see him weekends. Also, our discussions take odd turns into other territory. Because he is a chartist I am learning a lot of the technical but not much of the lingo or the fundamentalist side of trading. In the interim I don't mind an internet community to fill the void in my research.

Thanks for the quick answers guys. I think certainly a sticked thread with stuff like this needs to be made. I looked for it and couldn't believe it wasn't there. Maybe a thread called "Ask a question - answer a question". Leave it open for a month as a sticky then change the thread title to something more appropriate and use it as the Beginning Beginner Thread (you don't have to make it all in one go - let it snowball for a month or more).

Thanks for the links in this forum, on the net and the mention of the books. I have read Tharp's name a few times - I will pursue him. One of the posters mentioned I'm trying to minimise the time from novice to gun - that is exactly right and I see it as distinct possibility. A thread like the one the moderator mentioned above would help fasttrack people on this forum and in their development in trading. You have given me a lot to digest - guess I'll sit down and get reading

 

[MR.]

So what would your Grandfather say?

Would you listen anyway?

Would it be, could it be?
https://www.aussiestockforums.com/forums/showthread.php?t=14253

Maybe your grandfather would understand what I'm on about?

 

[Harro7]

So what would your Grandfather say?

Would you listen anyway?

Would it be, could it be?
https://www.aussiestockforums.com/forums/showthread.php?t=14253

Maybe your grandfather would understand what I'm on about?

Forgive me, you'll have to be a little clearer.

What would he say with regards to what question? Either way I probably couldn't speak on his behalf at a guess.

I would listen intently.

With regards to your thread - you're saying there is volatility and that there is room for it to crash further, or for all-time. My grandfather trades futures by the minute and at the moment is not as involved because of the volatility. However, there are still opportunities he says and as long as their is a market there are people speculating - buying and selling. For now, I'm happy to sit back, listen and learn.

I'll take a look at your argument against Buffet and others later... on with my reading.