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Gene Batten/ Traders...
hi, i am in the u.k. and also share the dream
friend. I will be starting with limited capital (some say its way to
small,) about 7,000 to 10,000 u.s. dollars and will commit 1,000 u.s.
per month as well.
I figure i should be able to support at least one trade per month.. Now i
have heard people say you need a minimum of say 25,000 really, but i dont
think that is so.... i wont be trading for the sake of trading, but waiting
on the sidelines for the oppurtunity which presents the least risk...(yes
and i do know about the coin flipping theory, but the markets are not
random,not all the time)
then hopefully in time i would like to dedicate my time to studying the
markets even closer.
So my plan is to study charts look for extreme price levels, high and
lows, work out trading plan, ie entry and exit points, place the order and
thats it.
I have read Schawger on Futures (technical analysis) and feel his methods
have some merit. I am also studying volume and price action, and that seems
very interesting and makes alot of sense.. ie. volume often leads price
and should go with the general trend.(increasing with price inreases and
contracting with price decreases)
I think you should be cautious of prices rising on falling volume trends,
as this indicates a lack of selling pressure rather than the enthusiam of
buyers.
Sooner or later the price will rise to a level that will stimulate people
to sell. (profit oppurtunity)
example. i will be looking for very heavy volume after a price has made an
extreme low. Then subsequent price and volume trends should both be going
up. Thats the kind of pattern i will be seeking. (obviously i am
generalising a bit here, but hopefully you can see my point). other
indicators ie, momentum, moving averages,
should be indicating trend changes, all of this will add to the weight of
evidence, hopefully giving me the best trading oppurtunity with the least
downside/upside risk (depending if going long/short)
My stops... they will be placed at a significant technical point. ie just
below relative lows/historic lows and highs, or if this implies too much
dollar risk then i will set a dollar risk value, (although i realise this
might not always be the best way to go.)
As for psychology..... well i agree that the biggest problem people will
face when trading is themselves.
Hence my decision to establish a trading PLAN, prior to entering the trade,
i feel acting on intra day impulses just is'nt for me, for some i am sure
it does work, but i need to ensure my survival and i know my emotions
greed, fear and panic might upset things if i day trade.
I welcome all comments.. J.S.D
P.s. I would like others to share their trading methology, any takers? Or
is it a big secret! Common lets discuss it......
At 11:16 21/05/98 EDT, you wrote:
> As a new member of this list, I have observed that there appear to be
>several members who are professional traders or who make their primary
>income from trading.
>
> Like many others, I have considered (fantasized) about day trading
>for a living. However, like most things, I know that it would be harder
>than it appears, so I am keeping my day job for now.
>
> If there are members of this list who would be willing to publically
>share their personal experience about full time trading, I would love
>to hear from them. Perhaps there are others here who would also like
>to enter this discussion and add comments or ask questions.
>
> I would be particularly interested in the following questions:
>
>1. How did you make the transition to full time trader?
>2. Would you do it again?
>3. What do you like and dis-like about full time trading?
>4. What is your trading style, what markets, etc.
>5. What has been the most challenging aspect of full time trading?
> (ie. money management, personal psychology, emotional control ??)
>6. Without giving away secrets, what are some of your strategies,
> methods, etc.
>7. How much capitalization (account size) is needed?
>8. What kind of returns have you been able to achieve?
>9. Any other info that you think is meaningful and helpful.
>
>
>Thanks,
>Gene Batten
>mdleb@xxxxxxxxx
>
>PS. After today (5/21/98) I will be off-line until 6/2/98.
>
>
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