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Re: RT Help for the Newbie



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Trading Reference Links

Okay, let's move on from whether one route is better than another.

What does a 'service' or a 'publication' or a 'system'  or a 'learning
process' or whatever else people buy to 'help' them trade actually cost?
What is the bottom line of what you have bought (if you are pleased) or
sold (if you are not pleased!)

Hopefully, that is not getting at anyone!  But it is asking an important
question, I suggest, for a lot of people on this list.

Whatever anyone produces, whatever that  'something' is and there is a
charge associated with it, then most people before they buy it will try and
establish some form of perception of what the value is against the bottom
line of what the total cost is.

If the product has an upfront price and there are genuinely no strings
attached (upgrades, new versions on the horizon, etc) you know where you
are so far as cost is concerned.   You will pay a precise amount to have
whatever it is.  The terms have to be clear, of course:  demo, trial,
guarantees, etc, which you may or may not like, but which you have to
accept before before you make your decision.

But if you buy something on an instalment plan, a fee, a commission or some
money at the end of a period of time, you have to be real sure that you are
not going to be paying a heck of a lot more for the product or service.
$500 up front may turn out to be a much better bet than say a percentage of
profits later or a fee as you go along.   It is easy to do the maths for
how much a month for a year or a lump sum, what is decidedly not so easy is
evaluating just how long it is going to take you to profit from whatever it
is you are buying.  That is the rub!

As markets, instruments and other facets of trading are different, so too
are the people and their circumstances.  And as for the small guy...

The really great problem with trading is the suitability or otherwise of
those attempting to do it.  I know nothing about mechanical systems or
computer programs that generate buy and sell signals, but I bet there are p
eople using them who will do well because of the way they interpret the
flashing lights and ring bells,  and there will be those who don't.   Much
the same (albeit in a different kind of way) will be true about
discretionary methods and those who use them.  Given the same degree of
individual 'competence' the huge difference between the two is money.

Money for learning, money for accounts, money for drawdowns, money, money,
money...

People opt for discretionary day trading because it is possible to learn
what is required to be successful.  It is possible to be able to do
everything for yourself, with minimum computer aids.   But for systems and
longer term trading, there is a need for more money - on virtually all
fronts.  The smaller guy aims to make a living out of the markets, the
bigger player is looking to increase his wealth.  Same market, different
approach - and of course, different results.

The small guy would do better to find out, in the shortest possible time,
whether or not the business is for him.  He has to find out whether he can
trade or not - and find out fast.  He will not have a lot of capital and if
he is the wrong temperament, he needs to know before he digs too deeply
into his limited resources.  Paying and/or living on the never-never and
trying to find out over time, is not an option, for a full-time bread
winner.  But how does he know?

Difficult!

Most of us have had to go through the apprenticeship.  Be conned left right
and centre by people I call vendors (and of course, as soon as I write
something to cut through all the BS, I am no longer termed a trader, but a
vendor!).  That's life!   But as someone said, if you are in the public
eye, you have to expect to be shot at.   If you are in broadcasting,
television, etc, as I have been a few moons ago, you get used to it.  If
you are part of the judicial system, you can expect much the same.   So it
is nothing new to me to be shot at.   But I don't often fire back!  I
usually do so on the basis that if I don't, probably no one will - and if
it needs saying, it need saying.

Without harping back, I reckon what I said needed saying, so I said it.

Furthermore, I do think that we ought to have a great deal more discussion
on the best way for those new to trading to start.  There really ought to
be some form of structured approach that this forum can offer.  The
perceived wisdom as it were. (By the way, count me out, I have quite enough
to do trading and supporting the people who have my manual.  I am not
suggesting the idea for me to play some leading part!!)  I do just feel
that, to avoid if you like, people getting off on the wrong foot, one ought
to be able to put them on the right track - without any contention.
Either/or, but not contention.  Good advice, as put out by RT.  It could
almost be done as a sort of starter pack for new members - or something
members could call for from the moderator's office.

Anyway, I hope it is worth a thought and a few  people might voice their
opinion...


Bill Eykyn
www.dbceuro.com/bille.htm