Hat tip to John for the link. I took the test twice (as I did not read the questions carefully in the 1st run), and it ended with the same result. So, I believe I am a detailed trader now. LOL. Seriously, I can’t agree more with the result of my trading strength and challenge. It actually reflects in my working life as well. I am pretty good and confident in execution, but, I can be very wrong by working and researching something in the wrong direction. What the …..
Anyway, give it a try.
Happy New Year to all my readers. Thanks for dropping by this small corner of mine for the past couple of years. By the way, this is the hottest New Year I have ever had (over 40 degree Celsius, or 104 Fahrenheit). Here is to a great 2008.
Gavin.
I wrote this blog post back in September 2007. Sadly, today, most of the blogs I referred to had either removed or broken. I will try to update this post in the near future.
Meanwhile, if you are looking for resources to learn more about trading, please have a look at my Back to Basics of Trading series.
I have a couple of friends asking me how to start trading or do I have any tips for them to start trading. Well, I am not a pro, nor a trading coach. But, I can share some great resources that are available online, in the blogosphere.
First of all, my trades are based on technical analysis, which means I am reading charts and looking for trading opportunities and setups mostly from price charts. I am not a big fan of fundamental analysis, it is too tough for a slow man like me to understand.
So, here we go.
First, armed yourself with skills to involve in the market. Making phone calls to your broker, or getting ‘tips’ from your colleagues or uncles are not skill. Learn how to read a price chart, how to analyze the market technically or learn how to read financial reports and analyze the market fundamentally. Some nice blog posts are available on the web freely on this area.
Once the price charts are no stranger to you, it is time to move on. So we read charts, but how are we going to deal with market? To start trading, we need to have a setup. A setup is a specific condition/situation that market presents to you and gives you the chance to enter the market. As you might know I am a big dummy fan, all my trades are based on dummy setups. Some people live and breath with indicators for trading setups, nothing wrong, as long as it works for him. Here are some good resources:
Alright, we have setups, looks like we are ready to make million now. Nah. The next big thing in trading is about risk and money management. You can’t trade without money. The bottom line is to protect yourself (your capital I mean!) when having bad days. Trading is a probability game, you only have high probability trade but not sure-fire trade. No setup will give you 100% success rate. Face the fact! So, how much can you afford to lose? how many contracts or shares should you trade? Money management is essential for trading.
Enough? No. … Now you should have known that trading is a serious subject, serious business. Ok, I will continue in part II, this post is just too long.. 🙂
It was a strong morning. And, NQ was running without me. Staying flat for 3 days in a row. uhm… I saw a trend coming, however, I just couldn’t find my entry setup. Well, forget it. There are opportunities in the market day in and day out, but they are invisible to me now as I have not learned to recognize them. It takes a pretty long time and effort to build recognition plan and skills.
I received emails asking for information about futures trading. I have yet [Read more…] about Readings: Basic Options
Tape Reading is the skill that I would really like to master. However, it takes time to develop the feel and the skill of reading the tape. Here are some articles on this topic
Books
I did not trade on Options expiry Friday. Didn’t bother to log into my Tradestation as well. 😉
Here is an interesting site. Nick Lesson’s official site. Here is his full Biography. I am interested in reading this, partly because, he was a futures trader, and trading SGX-Nikkei 225 Futures in Singapore and subsequently broke Barings.
I am still trying to find the VCD/DVD of the movie Rogue Trader in Singapore.
