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Joe Frabosilio wrote:
>
> Hi,
>
> I want to start trading in the futures market. I trade short term stocks
> and stock options. The problem is that I'm a real beginner with the
> futures area. The other night, I saw this 30 min spot of Jake Bernstein
> on "Trade your way to Richs". He also, has a book called "The Compleat
> Day Trader".
>
> Has anyone used his system? Also, on the book is that for beginners or
> more advanced traders.
Hi ya Joe,
If you are trading stocks, hopefully you already have a firm grasp
on technical analysis. Futures are not that much different from stocks,
just easier, simpler, and better to trade. For the fine points, you
can telephone the CBOT at 800-THE-CBOT and get a free packet of
information or go to their website. The CME also does this, but I don't
know their toll free #. Both have extensive websites and e-mail.
One of my rules on purchasing trading info is any book which
promises or implies riches in its title is a red light. How can everyone
get
rich from trading when only 5% are successful? As for daytrading,
there are very few markets that are volatile enough to day trade which
is what is required to make money. Those few markets, i.e. S&Ps which
do move enough are no place for a beginner. Even if you consider
yourself a very experienced trader, one could well argue that if the
market is volatile enough to daytrade the risk reward would dictate
that you shouldn't exit a winning trade at the end of the day. To do
this
is to impose an artificial constraint on your trading which does not
reflect any dynamic directly reltated to the market. This is becoming
more valid each day that the trend for 24 hour trading in markets such
as the S&P strenghtens.
Lastly, each time you trade you take a risk. The more you trade the
more you risk. I think the more you trade the odds of being successful
drop exponentially. Pick a point that you want to enter the market.
Decide at what point you would be totally wrong, i.e. a disaster stop.
Then multiply the difference between your entry point and the stop by 5.
Add this product to entry if you are buying or subtract this amount if
you are selling short. Now look at your charts
and your analysis and decide if you have a good chance for the market to
achieve that level in a reasoonable amount of time. If the answer is yes
and you can afford the risk, take the trade. If the answer is no, or you
can't afford the risk, don't take the trade. So, there is the $5,000
Simpleton trading system for free. How much time and money did I just
save you?
Simply,
Norman
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