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Fair enough. I've copied below some thoughts I've offered previously re
learning to trade futures. I would avoid the entire list of commodities
included in the original post ... they are not only volatile but most
are traded in the NY pits which I try to avoid. I would suggest sticking
with the Chicago markets ... bonds and grains and the mid-Am exchange
offers smaller sized versions of the big contracts which are good for
getting the feel of futures.
Earl
If possible, open an account with at least $50k with a broker who will
allow you to trade with 10-20% cash
and rest in t-bills. Have the broker purchase a 6 month T-Bill for you
in percentage equal to 100% - (cash %
+ 10% buffer) e.g. 70%-80% or $35-$40k. The psychology of having
adequate capital in your account is
extremely important and you will earn interest on the T-Bill. Then limit
your risk per trade to no more than
2% of your total account balance e.g. $1000. Go with one of the larger
firms which offers full service,
discount brokerage, and electronic order placement - flexibility is
important early on when you are getting
started. Begin with the full service desk (around $40-$45) so you can
feel comfortable asking questions about
order types, quotes, and order placement strategy (not trading advice!).
Once you are comfortable with the
order placement process, you can move to the discount desk at lower rate
($25-$30) where you can phone your
orders into rushed/busy order brokers or you can move to electronic
order placement ($15-$25) where you can
just zap your orders in when the electronic system is working and use
the phone desk when it isn't.
At least initially, stick with position trading rather than day trading
so you have adequate time to plan
strategy without being under the gun of a moving price. Also, you will
save thousands on real-time data feeds
with annual contracts. Don't spend a thousands on trading software,
virtually all of the major products
provide all of the required tools - Metastock End Of Day at $350
provides an excellent general purpose
toolkit and good support. You can buy the expensive stuff later on when
you know your trading style and time
frame. Too many newbies rush out and buy Omega ProSuite for $5k and then
try to trade with a $5k account.
Know this up front - the amount of cash in your trading account and your
ability to control your losses is
the only thing which will stand between you and a broken trading career.
Don't spend thousands on get rich quick systems or courses - the process
of becoming a professional trader is
no less demanding than competing with professionals in any other field
of endeavor. Every new trader begins
by seeking the holy grail indicator but there is none - the holy grail
is understanding price patterns and
behavior and market psychology. Buy a few good books and study,
practice, and study. Two books I would highly
recommend are: Edwards & McGee Technical Analysis of the Stock Market
($65+- at any major book seller) which
is a classic on market analysis and behavior, and Robert Miner's Dynamic
Trading book ($100 from
www.dynamictraders.com) which does a good job of integrating market
behavior and some good basic trading
tactics.
Finally, there are a lot of good analysis and charts posted here, but
don't for a moment trade from what is
posted. Trade from your own work using what is posted here for a
starting point for your own analysis.
Earl
----- Original Message -----
From: "Brent" <brente@xxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Thursday, January 20, 2000 1:28 PM
Subject: [RT] RE: M. G. Major mis-understanding
> Hi RT's,
>
> Our fellow RT new member M. G. Major wants the forum to know that he
is
> sorry for the mis- understanding about the html - colored text. He
like many
> of our members does not speak English as his native language. He
speaks
> French and is struggling to communicate in English. I think he
deserves
> another chance to get to know the members here and a helping hand.
>
> Brent
>
>
>
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