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At 08:43 AM 5/21/98 +0100, you wrote:
>In U.k. tend to start trading, futures, initial cap. 7,000 -10,000 u.s.
>and monthly injection of, 750 - 1000 u.s.
>anyone have any advice on whether, to day trade, look longer term.
>Sutitable markets, for limited intial capital ie.. mini s and p 500 ?
> Also any advice, regarding setting up as a business,ie (trader status)
>that way i can offset any losses against my other earned income... Work and
>reside in u.k. Any other Brits in the Same position.... Looking for
>assistance.. Jonathan...
>
>
Jonathan,
I remember when I was asking similar questions. And I still have questions,
the learning process never ends. Just when you think you are getting
good - WHAM! the market teaches you another important lesson. A trader
friend of mine has a hand-written sign on his wall: "We are only ONE trade
away from humility", it says.
No offence intended, but you need to slow down. You should have your
question "whether, to day trade, look longer term. Suitable markets?"
answered well before you start risking cash.
The up-side is that you have some more time to accumulate capital. Every
additional $1,000 of capital you add, improves your odds. Every additional
month of study and preparation you invest before risking capital will
improve your chance of success.
Although actual trading is required before you can really have confidence
in your methodology, paper-trading is a valuable money-saving and
educational practice. Paper-trade while you accumulate capital. Also,
consider learning in a low-leverage environment, or wait until you
have enough capital to handle some high-leverage losses. Read as much as
you can, there is a lot to be learned from the experiences of others,
why learn the hard way? Treat this seriously, study hard.
Most traders fail. Most **successful** traders fail before becoming
successful.
This means that you will probably lose enough capital to consider yourself
a failure, along the path to success. (My opinion, but I know several
successful
traders).
To avoid this unhappy/uncomfortable outcome, you should look for ways of
learning without risking much capital. Time is your greatest tool. The more
time that passes, the more experienced/wise/effective you become. You need to
make your capital last through this learning process.
That is your first objective, to make your capital last through the learning
process.
Most successful traders try many diverse techniques and methodologies
before the find the ones which work for them. It can be a long and expensive
process if you are not careful.
Wow! Sorry to be so negative! But consider how much money is lost by new
traders every year, imagine that this is a message from all those
silent ex-traders.
If you are careful, you may buy enough time to learn how to trade
successfully.
Best wishes,
-Neal.
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