Practical application

[deanj]

Hi all,

First time poster, long time reader. I have been wanting to start trading for some time now, though cannot bring myself to begin, mainly because I cant justify my knowledge base broad enough to be successful... yet.

Im recently graduated with a finance degree which I find be be next to useless, and am working in an accounting role which is killing me. I need some excitement in a more finance driven environment. I have a love for the markets and have thus turned to trading.

Ive done my research and have read several books including Reminiscences of a Stock Operator and Technical Analysis of the Financial Markets by Murphy. My difficulty comes in the inability to apply this knowledge to real time. I have very little knowledge of software aplpications or how they work. I understand charts but have little knowldge of where to gain the greatest access to them. How do you go about picking which stocks to analyse?

These are my broad issues. I would appreciate any help in getting started, maybe applications that provide a platform to practice on or something along these line. Im itching to get started but cannot justify it right now before i know i can and will succeed.

Thanks guys

 

[cogs]

Just my thoughts.

I started with Metastock some 15 years ago and found the expert advisor and explorer a good learning tool, as you can alter functions etc, to suit your own goals and intentions. There are many others as I am sure other posters will recommend.

Another suggestion is to sign up with someone like Go, Axis or Vantage with their MT4 platforms and set up a demo account and trade your thoughts and ideas and get a feel for using your current chart knowledge. Not a plug for Go Market but they have zero balance account set up and are pushing for more clients. You can set up as many demo accounts as you want. The main restriction you will find with them is you can only trade FX, Gold and Silver. there are a gazillion others you can sign up with but most only offer ~30 days demo where as you can discuss longer term demo accounts with the MT4 guys, so it seems.

 

[tech/a]

Hi all,

First time poster, long time reader. I have been wanting to start trading for some time now, though cannot bring myself to begin, mainly because I cant justify my knowledge base broad enough to be successful... yet.

Im recently graduated with a finance degree which I find be be next to useless, and am working in an accounting role which is killing me. I need some excitement in a more finance driven environment. I have a love for the markets and have thus turned to trading.

Ive done my research and have read several books including Reminiscences of a Stock Operator and Technical Analysis of the Financial Markets by Murphy. My difficulty comes in the inability to apply this knowledge to real time. I have very little knowledge of software aplpications or how they work. I understand charts but have little knowldge of where to gain the greatest access to them. How do you go about picking which stocks to analyse?

These are my broad issues. I would appreciate any help in getting started, maybe applications that provide a platform to practice on or something along these line. Im itching to get started but cannot justify it right now before i know i can and will succeed.

Thanks guys

(1) Knowledge.
Define it What is your planning idea.
What do you need to find? Whats the criteria for entry/exit/risk/trade management?
Then work on what you need to have to find these to trade.

(2) picking stocks.
Once you know (1) Possibly Amibroker is going to be your best and cheapest alternative. Just code what you need in (1) and youll find your entry candidates.

(3) knowing you'll be successful.
You can take as much education as you like and it wont guarentee success.
Understand Risk andf how to minimise it.
How to manage trades.In particular what your strategy is when your wrong and you'll be wrong more often than right.
You can still be very profitable even when your wrong 70% of the time.
Learn what to do to achieve profitability.

 

[deanj]

Thanks guys, I really appreciate the advice. Seeming as I have no solid points of reference i really value what the forum has to offer. I had looked into starting up through courses such as Hometrader but again, couldnt justify the 4, 5k to join.

Is there any alternatives in terms of personal coaching?

 

[cogs]

From a technical analysis point of view I can send you details of a 7 week training course I did quite some time ago, most of which is still relevant today.

It is such a very small part of trading, honestly mate I believe it takes 10 or more years to get a feel for trading. ie - experience how the short and long term cycles affect the market etc, but if you have the passion you have to start somewhere.

Personally, I will be introducing my child to trading and money management quite early, while I started later in life. I understand in the US they teach trading in secondary school?

 

[deanj]

cogs id appreciate that greatly. could you inbox me the details?

 

[craigj]

in this economic climate there is no rush to trade

so you have plenty of time to learn and absorb everything you can

 

[deanj]

Any advise for the best software to paper trade on?

 

[ThingyMajiggy]

Any advise for the best software to paper trade on?

Ninjatrader is the go IMO. www.ninjatrader.com

 

[opulence]

Hi all,

First time poster, long time reader. I have been wanting to start trading for some time now, though cannot bring myself to begin, mainly because I cant justify my knowledge base broad enough to be successful... yet.

Im recently graduated with a finance degree which I find be be next to useless, and am working in an accounting role which is killing me. I need some excitement in a more finance driven environment. I have a love for the markets and have thus turned to trading.

Ive done my research and have read several books including Reminiscences of a Stock Operator and Technical Analysis of the Financial Markets by Murphy. My difficulty comes in the inability to apply this knowledge to real time. I have very little knowledge of software aplpications or how they work. I understand charts but have little knowldge of where to gain the greatest access to them. How do you go about picking which stocks to analyse?

These are my broad issues. I would appreciate any help in getting started, maybe applications that provide a platform to practice on or something along these line. Im itching to get started but cannot justify it right now before i know i can and will succeed.

Thanks guys

You've pretty much summed up my entire feelings at the moment. Its ironic that it seems so easy to learn about the theory (the bit that makes people money) and so hard to learn about the systems (the bit that makes other people money).

Most of my time at the moment is spent sussing out the different brokers and charting tools etc. Had a play with the demo version of AmiBroker the other day. Daunting at first but sure enough by trial an error my playstation generations skills left me feeling somewhat able to navigate around it. The coding part of it seems very extensive but having done a few C programming courses as part of engineering, (before I got jack of it and switched to finance) it appears familiar. Even somewhat resembles excel functions.

Have a look at TraderDealer. If you were into day trading, I can't find a broker that matches them for price. They have this funky pricing structure where you can round trip to your hearts content and only get charged once. To me that sounds great for someone starting with minimal capital who can't afford to erode profits on brokerage.

 

[tech/a]

You both have a long road to travel.

Have a look at this publication if you can get it.
Is a very good reference work for anyone who feels serious about learning this business.

I have no association other than seeing it as the best all round work Ive seen published.
And he's an Aussi.

http://content.boomerangbooks.com.au/new-releases-blog/tag/brent-penfold

 

[opulence]

You both have a long road to travel.

Have a look at this publication if you can get it.
Is a very good reference work for anyone who feels serious about learning this business.

I have no association other than seeing it as the best all round work Ive seen published.
And he's an Aussi.

http://content.boomerangbooks.com.au/new-releases-blog/tag/brent-penfold

Its funny you should mention that I've actually got a web page up at the moment looking to grab it. I do want to read something like the intelligent investor and at least have a better working knowledge of the other side of the fence even though I feel myself gravitating to a more technical approach.

Tech/a, I've noticed just reading through the forum you seem very much on the technical side (correct me if I' wrong) and get your back up when people say its all chartist witchcraft, if you don't mind me asking for the sake of inspiration alone, have you made it to a consistently profitable stage yet?

 

[tech/a]

Yes.

 

[opulence]

Yes.

Reassuringly concise!

Just ordered the book you recommended.

 

[tech/a]

and get your back up when people say its all chartist witchcraft

I enjoy debate on this topic.
I dont enjoy comments which are un supported without evidence.
A blanket statement of all Charting is witchcraft is generally made by those who havent yet fathomed practical application of Charting.
How to apply it to derive profit.

Anyone can apply studies to a chart.
Few can transfer that into a consistently profitable trading methodology.

 

[opulence]

I enjoy debate on this topic.
I dont enjoy comments which are un supported without evidence.
A blanket statement of all Charting is witchcraft is generally made by those who havent yet fathomed practical application of Charting.
How to apply it to derive profit.

Anyone can apply studies to a chart.
Few can transfer that into a consistently profitable trading methodology.

I know that it can be done because people have done it. I'm just not able yet.