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Robert,
Yikes! If you have to ask questions like these you are not
even close to being ready to consider trading as a career
path.
There are hundreds if not thousands of traders out there
who have 10, 20, 30 years experience taking money way from
newcomers. If you are new to trading, start small, go
slowing, gain experience by paying small chucks of money as
tuition in the school of hard knocks.
Above all, keep your day job -- or at the very least make
sure your wife is willing to keep hers and support you
during the learning years -- and we are talking not months
but years.
A couple additional comments are in BLOCK LETTERS BELOW.
b
--- Rock Fish <tf_rockfort@xxxxxxxxxxxx> wrote:
> Hello List ,
>
> I'm at a cross path and would like to choose trading as a
> career.
>
> But the question is, how should one go about.
>
> How do I start ?
READ ELDER AND THARP AND GIVE AMPLE ATTENTION TO WHAT THEY
SAY ABOUT MANAGING MONEY AND EMOTIONS.
> What all should I know ?
BY FAR THE MOST IMPORTANT THING TO KNOW ABOUT IS 'MONEY
MANAGEMENT'. THIS IS THE MOST IMPORTANT TOPIC TO MASTER.
> How much do I need to have to start trading ?
TO LEARN, AN ACCOUNT OF 5K OR 10K WITH A LOW FEE BROKER
WOULD BE FINE.
BUT TO MAKE A LIVING TRADING, YOU SHOULD HAVE SEVERL TIMES
MORE CAPITAL THAN YOU THINK YOU NEED. THE REASON IS
PSYCHOLOGICAL. IF ONE CAN ONLY AFFORD TO LOOSE A LITTLE
THEN WHEN THE FIRST 10% LOSS IS FOLLOWED BY TWO MORE IN A
ROW AND ONE IS DOWN OVER 25%, ONE'S MIND (OR GUT) IS GOING
TO WRECK THE BEST TRADING STRATEGY.
IF YOU DO NOT HAVE A LOT OF EXPERIENCE TRADING, YOU MAY
NEED A VERY LARGE "CUSHION". IF YOU CAN AFFORD TO LOOSE 2/3
OF WHAT YOU START WITH AND FEEL NO EMOTIONAL OR FINANCIAL
PAIN, THEN YOU "MIGHT" HAVE ENOUGH TO TRADE FOR A LIVING.
THIS OF COURSE ASSUMES YOU HAVE A GOOD STRATEGY. MONEY
MANAGEMENT WILL HELP KEEP ONE'S GUT FROM TURNING A GOOD
STRATEGY INTO A BAD ONE, BUT MONEY MANAGEMENT WILL NOT TURN
A BAD STRATEGY INTO A GOOD ONE.
> What are the benefits or short comes ?
> How rewarding is it ?
> How much of technical analysis is helpful in trading ?
> Trading is very risky - is it a myth or reality ?
YES THERE IS CONSIDERABLE RISK. FOR EXAMPLE, ONE OF MY
CURRENT TRADES IS DOWN 50%.
A TRADITIONAL STOP LOSS ORDER WOULD NOT HAVE PREVENTED THIS
LOSS BECAUSE IT GAPPED DOWN AT THE OPEN DUE TO NEWS AFTER
THE PREVIOUS DAY'S CLOSE. NO STOP LOSS WILL PROTECTION FROM
SUCH A CRASH. ONLY APPROPRIATE MONEY MANAGEMENT CAN MAKE
THAT SURVIVALBE.
DO YOU KNOW HOW TO STRUCTURE YOUR TRADES SO THAT YOU CAN
SURVIVE SUCH A BLOW UP?
DO YOU KNOW HOW TO MANAGE YOUR EMOTIONS SO YOU COULD KEEP
YOUR HEAD WHEN SUCH A THING HAPPENS? OR WOULD YOU PANIC AND
DO SOMETHING FOOLISH?
READ ELDER ON MONEY MANAGEMENT AND READ HIM AGAIN.
> Basically, I want to know a lot and hope some well wisher
> in this list
> would answer my questions. If someone could point me to
> right
> resources, in terms of free books, courses, etc. it would
> be very useful.
>
> I did saw a nice note in stockcharts.com and want to know
> some good teaching matrial.
>
> Can the list please help me ?
>
> Thank a lot in advance.
>
> Regards
> Robert
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