Where to go from here?

[itsybitsybob]

Hi all, my first post here, and *I must confess* I'm a complete newb to trading...

I have read/studied as many books and resources as I can in the last 9 months, inlcuding forex, technical analysis (candlesticks in particular) as well as trading psychology... which I found very interesting!

I have also played a demo forex account for the last 6 months.

And that's about the extent of my trading experience.

At this stage I really don't think forex is for me. I fould it too difficult to predict (with my limited trading knowledge and skill in technical analysis) therefore by the end of each month's demo I was usually down, down, down! Gar! On paper it looked, dare I say, 'easy'... but in reality, I blew my demo account up every month. Not easy at all!

However, I am still looking to get my feet wet in some kind of trading (not forex) and was wondering if you folks could suggest a good place to go from here. A friend of mine suggested spread-betting, and ETFs, while a couple of other people have said CFD's are the way to go.

CFD's certainly seem popular, and perhaps might be what I'm looking for, but
I've noticed a few posts on here that suggest that newbs shouldn't go straight into CFD's as they are more 'difficult' to trade, so could anyone suggest the next sort of 'logical step' for me.

When I eventually enter the market for real (I'm not ready yet!) I will have $1000, so I'm looking for something that allows me: low brokerage costs, leverage, using reputable platform, ie, not MM. So, bearing that in mind, where should I go from here in terms of, what area of trading. Would studying up on CFD's be the next logical step? Or, should I avoid them and look to something else, futures? derivatives? Ahg! It's a whole new world to me!

Thanks for any input.

 

[skyQuake]

Hi all, my first post here, and *I must confess* I'm a complete newb to trading...

I have read/studied as many books and resources as I can in the last 9 months, inlcuding forex, technical analysis (candlesticks in particular) as well as trading psychology... which I found very interesting!

I have also played a demo forex account for the last 6 months.

And that's about the extent of my trading experience.

At this stage I really don't think forex is for me. I fould it too difficult to predict (with my limited trading knowledge and skill in technical analysis) therefore by the end of each month's demo I was usually down, down, down! Gar! On paper it looked, dare I say, 'easy'... but in reality, I blew my demo account up every month. Not easy at all!

However, I am still looking to get my feet wet in some kind of trading (not forex) and was wondering if you folks could suggest a good place to go from here. A friend of mine suggested spread-betting, and ETFs, while a couple of other people have said CFD's are the way to go.

CFD's certainly seem popular, and perhaps might be what I'm looking for, but
I've noticed a few posts on here that suggest that newbs shouldn't go straight into CFD's as they are more 'difficult' to trade, so could anyone suggest the next sort of 'logical step' for me.

When I eventually enter the market for real (I'm not ready yet!) I will have $1000, so I'm looking for something that allows me: low brokerage costs, leverage, using reputable platform, ie, not MM. So, bearing that in mind, where should I go from here in terms of, what area of trading. Would studying up on CFD's be the next logical step? Or, should I avoid them and look to something else, futures? derivatives? Ahg! It's a whole new world to me!

Thanks for any input.

stick with your fx thing and try different timeframes. At least you're honest with urself. You can master medicine in 9 months either if its any consolation.

 

[Ato]

When I eventually enter the market for real (I'm not ready yet!) I will have $1000

Thanks for any input.

Put your $1000 in a bank account and save up more money. Please dont think I'm trying to be nasty but $1000 is too small to begin imho. Once you have a larger account size perhaps look at entering the market?

 

[Trembling Hand]

Yep $1000.

I would say start learning about the business of trading. Position sizing, Risk to reward, Risk of ruin, Money Management.

 

[brty]

Itsybitsy,

A friend of mine suggested spread-betting, and ETFs, while a couple of other people have said CFD's are the way to go.

The vehicle is irrelevant, it is the methodology that is important. You need to find yourself a trading method that works, something that has a positive expectancy. This is what you can use your demo accounts for. Only after you have found something that looks like it makes money should you test it with real money, because this is where you will test your suitability to trade such a system, plus find the flaws in what you planned or found.

If you can't find something that seems to make money, then keep trying until you do, all the while saving a few bickies in the cash account. Try simple things, find one simple thing that appears to work, test it vigorously, don't use a scattergun approach of all types of patterns etc.

Persistence is what counts if you are to be successful, humble in the face of what the market can and does do.

brty

 

[itsybitsybob]

Thanks for your comments guys, I appreciate your thoughts.

I hear what you're saying about $1000 - I know it's nowhere near enough, (and I wish I had more! LOL. Don't we all! ) But I'm looking at it as a figure I'm willing to risk and to lose... for the price of my continuing trading education... I'm under no illusions about the very real fact that I may lose it all very quickly - given my experience level and the fact that most 'traders' fail... I guess it's almost a near certainty... But, I don't think I'll ever learn unless I really get my feet wet and start trading real money.

This is the plan I have:

I'm signing up for a 6 month subscription with a professional trader. I've done some research and he seems to be well regarded, and he offers alerts and news and training. He's not too expensive, and offers a money back guarantee, so it looks legit. I'm signing up primarily for the education he offers, but also, I can check out his recommendations and see for myself. I like the idea of a mentor, and learning from people with experience. Hopefully he can answer all of my newb questions too. he he.

I'm going to sign up for an account that allows me to demo trade CFDs. This will be my practice account. I'm thinking of Interactive Brokers - not that I know much about them, but they came recommended... and it's only a demo, so...

(Does anyone know anyting about Interactive Brokers? Just out of curiosity.)

Then when I'm ready, I'm going to open an account with $1000. I haven't found one yet that I want to go with... I want DMA broker, not MM... but so far the one's I've looked at Commsec, IG Markets, or Etrade. On paper they look good, but slightly prohibitive, due to their high brokerage... I will keep looking until I find one that suits me.

Ah, there's so much to learn, but it's so interesting and dare I say 'fun'? If nothing else, I have picked for myself an expensive hobby...

 

[skyQuake]

Thanks for your comments guys, I appreciate your thoughts.

I hear what you're saying about $1000 - I know it's nowhere near enough, (and I wish I had more! LOL. Don't we all! ) But I'm looking at it as a figure I'm willing to risk and to lose... for the price of my continuing trading education... I'm under no illusions about the very real fact that I may lose it all very quickly - given my experience level and the fact that most 'traders' fail... I guess it's almost a near certainty... But, I don't think I'll ever learn unless I really get my feet wet and start trading real money.

This is the plan I have:

I'm signing up for a 6 month subscription with a professional trader. I've done some research and he seems to be well regarded, and he offers alerts and news and training. He's not too expensive, and offers a money back guarantee, so it looks legit. I'm signing up primarily for the education he offers, but also, I can check out his recommendations and see for myself. I like the idea of a mentor, and learning from people with experience. Hopefully he can answer all of my newb questions too. he he.

I'm going to sign up for an account that allows me to demo trade CFDs. This will be my practice account. I'm thinking of Interactive Brokers - not that I know much about them, but they came recommended... and it's only a demo, so...

(Does anyone know anyting about Interactive Brokers? Just out of curiosity.)

Then when I'm ready, I'm going to open an account with $1000. I haven't found one yet that I want to go with... I want DMA broker, not MM... but so far the one's I've looked at Commsec, IG Markets, or Etrade. On paper they look good, but slightly prohibitive, due to their high brokerage... I will keep looking until I find one that suits me.

Ah, there's so much to learn, but it's so interesting and dare I say 'fun'? If nothing else, I have picked for myself an expensive hobby...

Does said professional have a website? How long has he/she been trading etc?
Usually the ones that do mentor and charge a fee are not worth listening to. But you may have found the exception.
Good luck.