brownsfan019

BH - the only thing that really comes to mind was trading on a new platform and not fully understanding the functionality. Bad idea. It's been awhile so I can't recall the specifics other than to say that I used the simulator till I knew the software inside and out.

Good question. Right now I just want to be able to make a basic website. Learn how to design in it, how to host, etc. etc. From there I'd like to be able to make a site for the family where we can store pictures and have online access. After that, who knows.

I'd like to learn how to make websites. I realize a lot can go into it, but does anyone have any recommendations for an at-home study course type thing? Thanks!

I've never gotten much use from it. It'd be nice for there to a thread that explains how to use it. Ben from one of the squawks has been on the site, but has yet to post anything that you can use to trade from. If it works for you, great! If you want to share how/why, great!

CW - My view is simple & similar to the example you provided from that website or author. Basically I want enough in the account at all times to provide enough of a cushion for me and that's about it since futures accounts pay little to no interest. I then have basically a savings account or money market where my 'secondary' futures account sits at least earning something. So the account(s) held at the actual futures broker is 'just enough' and excess is moved to something that will earn interest. In my eyes that's dead money sitting at a broker earning 0.00% interest. I'll take .25% or whatever the rate is over 0.00% any day. May not be a ton of interest w/ today's rates, but I can't stand watching money earn nothing while sitting there. From there it's a matter of paying bills, having some fun money, etc. I'm one that likes to pay off current and future bills as well, esp during good months. So after a good month, I may pull a chunk out and pay off the mortgage a few more months out, etc. I just don't like bills and like to take chunks out of them whenever possible. And if at any time the primary futures account takes a hit, a quick bank wire and it's back to normal. If things are going as planned, this does not happen too often.

Yes, as the article states and my many posts in the candlestick forum, everything is to be taken in context. The author of the article clearly talks about looking for doji's after there has been some sort of move, not just playing find a doji and trade it.

Found a rip of the first one. Google 'thebox' (all 1 word). First search result will take you to a torrent site. From there search for Million Dollar Traders (after registering) and off you go. Very quick download, have not watched yet though.

If your platform has the data, that's all you need.

Stops: I place at some sort of technical level - S/R level mainly. Profit Targets: No matter what you do, you'll always be wrong. Once you accept that, you can be at peace w/ it. What I mean is that you will NEVER, EVER, EVER have the perfect exit all the time. Some trades are much better to pick off a previous level and be happy; while others will reward you for hanging on all day. In my years of trading, profit targets have always been my arch nemesis till I realized that profits will never be perfect. Never. Once I realized AND accepted that, I worked w/ the tools I had in front of me. From there it's a matter of tracking your statistics and finding what is the most profitable and/or least risky model you have at your disposal. If you are not tracking your trading, that's problem #1. Track your possible exit points and if you accumulate enough data, it will be clear as day how you should be exiting your trades. If you are not serious enough to do that or just shooting from the hip, good luck b/c you will need it.

Over the years of my trading, I am always looking at different markets to see how my trading style would be doing on other markets in comparison to the US indexes (mainly ES) that I have traded. More often than not it's more of an exercise that simply reaffirms my focus on the ES; however, that has changed recently w/ my study of the bond futures. While recommending a contract is not a one size fits all, I'd suggest taking a look to see if any of the bond contracts could compliment your trading. Personally I have found that I'm getting less fakeouts and shakeouts on the bond contracts in comparison to the ES. So much so that I'm going almost exclusively to the bond contracts while the getting is good. We all know that markets change & you have to adapt to them, but currently (Jan 2009) I'm finding much easier goings in the bonds markets vs. the US indexes. The bond markets I am focusing on are: 10 Yr Treasury Note - ZN 30 Yr Treasury Bond - ZB On these markets, I have seen the following characteristics: Good volume Plenty of activity starting at 8am EST Slower pace - easier to get in/out of trades S/R level respected more More specifically - my stop levels are holding much easier here Profit targets reasonable & attainable Pretty much die off around Noon EST, which means a nice day of trading 4 hours and done for me What I find rather interesting is that I am using the exact same setup on the bond markets and the ES but finding the trades easier on the bond markets. Of course that may change at some point, but right now, it's working quite well. I think the bond markets are often viewed as boring or something only pit traders play, but there's plenty of volume to daytrade and I really like being able to start at 8am EST. Again, it's not for everyone but take a look to see how the bond markets might react based on how you trade. You may find them boring or not conducive to your style of trading, but if you find yourself getting having some aggravating moments on the ES, take a peak. Note - depending on which contracts you look at, the initial price quoting may be a little confusing. Takes a little bit to get used to.

Interesting. If anyone knows a way for us yanks to watch it, let us know! http://www.bbc.co.uk/bbctwo/watchlive/ - tried going there but says not available in your area.

OAC got it - your money never even goes to the IB. The IB is mainly there to help you, answer questions, etc. but your funds never actually go to the IB. Basically the IB is initially used for marketing purposes and then once a customer, they take care of customer issues; meanwhile the FCM takes care of the trades, reporting, etc.

Very true. I've found that entries are the EASIEST part of the plan for me. Where to get out - profits and losses - continue to be my personal demon (esp profits). So easy to think one time to let it run and the very next time to not get greedy.

Transition from your 9 to 5 to Trading for a Living Part time? Full Time? How about One Step at a Time? by Don Bright I interview dozens of potential new traders every month, and the question of Transitioning from the safety of a paycheck or business venture to successful trading comes up often. No need to leave job security behind, in my opinion. Let’s discuss a few scenarios. One of the first things to take into consideration is to realize that trading is, indeed, a business, and must be treated as such. (See “The Business of Trading” TASC, August 2008). So, with this in mind, let’s cover some business basics. One of the primary reasons for lack of success in any business is lack of capital. I’m speaking of capital to properly run the business at this point, not “living expenses” which we’ll get to a bit later. There are many books and seminars and TV ads that attempt to convince the public that money can be made with their products with only a $25,000 retail brokerage account, this is extremely difficult in my opinion. Can and should you invest your own money with a retail account? Sure you should! Do your homework and trust yourself, not a stockbroker, to make investing decisions for you. But investing is not trading for a living. For our assumptions in this treatise, let’s assume an average stock price of around $50 per share. Merely buying 1000 shares of a single stock would tie up all your capital and margin. If you intention is to simply make $100K per year, this would require some extraordinary vision and a lot of overall risk. The strategies that our traders use, for the most part, require about $1 million or more to work properly. Bear in mind, I’m talking about “use of capital” not “abuse of capital”- and certainly not engaging in excessive risk. (Explanation of business model: Our traders can put up $20K or so, and then use our money to trade with, thus having the ability to engage in strategies that I will outline below. All P&L goes to our traders, we trade billions of shares and only keep a portion of their low commission costs). OK, now that we’re thinking of starting a Trading business, let’s think about how to get started. Let’s assume you’re working a “normal” job, with a little flexibility, as most of us are. Time zones can actually play a part, as you will soon see. A great majority of my traders engage in what we call the Opening Only Strategy that has been discussed here in the past. This is one of our most lucrative single strategies, and has been working well for decades. Our traders place orders to buy or sell short a number of shares at pre-determined prices, prior to the opening print on NYSE stocks. We go through a pre-market calculation to determine limit prices that we would like enter this trade….if the stock gaps up or down from the previous day’s closing price. For example, I place 2000 shares to buy and 2000 shares to sell short in about 50 stocks each day (Bright Trading places about 40 million shares of this “opening only” variety each morning). I don’t want to be filled if the stock opens at a “fair” price based on market conditions. I only want to be filled on gaps prices. I try to get about a 10-15% fill rate, giving me stock, either long or short, on 5-8 stocks on average. The big edge is that I know that if I am filled, the NYSE Specialist is also filled at my price, in my same direction, long or short. Over the decades, even with all the changes on the NYSE, this is still a true assumption. I take profits with an automated program, or cover losses when they happen, and am usually finished with this strategy within 5 or 10 minutes (rarely longer than that). Our new people have averaged a 75/25 win/loss rate within the first couple of weeks of their starting date. We have many traders who engage in this strategy, and nothing else, when Transitioning to a more full time trading career. This allows for a half our prep time and a half hour trading time. Many make a good 6 figure income doing this, and this alone. Great way to keep your job while augmenting income and/or preparing for the move to full time trading. This requires the “use” of capital that I described, but not the “abuse.” Using a $million or more to make $100k or more per year. Another strategy that only takes a half hour or so takes place at the end of the trading day. This strategy revolves around the MOC (Market on Close) imbalances that are published by the NYSE starting at 20 minutes prior to the closing bell. All day long various funds and groups place orders to buy or sell great number of shares at the very last price of the day, the “market on close” price. We filter for larger imbalances, either to buy or to sell, and immediately place orders that go along with the imbalance. We can then either take profits, or increase share size, for the next few minutes based on market conditions. We, as professional traders, can submit MOC orders to then close, or offset the imbalance during that last 20 minutes. So, again, a strategy that can me done in a very short time frame. Now to time zones. I have always traded in the Pacific Time Zone, where the market opens at 6:30 AM and closes at 1:30 PM. Many of our local traders, while transitioning, will come in at 6AM, trade the opening, and go to their jobs at 8 or 9AM. They then return for the last half hour of the day during lunch. Of course, your time zone may be different, but if you have some flexibility in your job, you too can transition this way. I never advise anyone to quit a job to start any business venture, and trading is no exception. Traders need to keep a cool head, and not be worried about making house payments or feeding their families, especially during the first crucial months. I do suggest to those who find themselves retired or out of work to have enough money in the bank to cover expenses for a year or so while getting things rolling. So, take things one step at a time, keeping a level head, and start your trading career one step at a time. After you achieve a comfort level, you can easily move into a full day of trading with several more techniques. Don Bright ================= I thought this was a pretty good article from Don for those considering trading. I've never worked w/ Don but always impressed with his comments and openness.

Update on OEC: All is good here since being bought by OX. I suppose no news is good news, so not much more to report. I'd still recommend contacting Open ECry when looking for a new broker. Software AND data is free, and it's a pretty robust software package for most traders. You can also plug the data into other charting platforms if you need more. When watching your monthly expenses, eliminating any data fees is pretty nice IMO.

In this thread I pasted an article of a VSA spin w/ doji candles. Pretty interesting idea for those familiar w/ candle patterns.

I will try again since my post was not seen for some reason. Check out OEC arch. I've been trading for a few years now and very happy there, incl trading currency futures (mainly 6E).

My stops are dependent on each individual trade. Never found much use in a set stop as there are a number of factors that can influence stop runs IMO: 1) Volatility - big one. When volatile, stops normally have to increase or the likelihood of being stopped out on a a quick spike is to great. 2) Recent price action - if selling near the HOD, then placing a stop at/near the HOD can make sense. If you are expecting price to drop either you are right or wrong. For me, when selling the HOD, it's a rather simple trade - I expect to nail the HOD or not. If not, then I want out ASAP; not trying to be a hero. 3) Other levels - good to know where other possible S/R levels are and consider stops based on that (High/low of day, globex high/low, etc.). As we've all heard and read before, the big guns can go stop hunting at times and you can see that on your screen when it's happening. Stop placement is critical to success and IMO cannot simply be a function of 'how much I can stomach to lose before I start to panic'. If you find yourself thinking 'I'll put my stop here b/c that won't hurt as much' then odds are your stops are very tight and also very likely to get hit. Find some appropriate level to base your stops on and then honor them. If your stops are too big for your comfort level then you need to reexamine your trading plan. Stops are there to get you out when wrong NOT to minimize the fear of losing or being hurt.

Open ECry has a great free platform. Test the demo and see for yourself.

Couldn't have said it better myself. While I've been 'trained' to see those high volume moves you mention, I like how the author presented the idea of the low volume test. For me, it was a great visual representation of the idea.

BF - I would agree w/ you that higher volume is good, but I see where this author is coming from and it makes sense to me. The premise in my head is that you are looking for is a doji after a move on lower volume = no more interest to drive price up/down. Now of course it depends on the context as well. This pattern would hold more water (my guess) the higher the timeframe.

BF - it has live and historical; however the historical is very limited. If you need something with a lot of historical data, you'll need another vendor to supplement that. If you just need live and recent historical, OEC by itself will work.

It's fine. As stated above. All vendors have the occasional outage, but OEC has been very good about keeping that to a minimum. It's been a while since the last time I had any issues (knock on wood) and when there is an issue, they are typically very good at getting it back up and running ASAP.

It appears the author was influenced by Wyckoff and while it may not be necessary to mention his name, it does help clarify WHERE he is coming from as this is not traditional candlestick analysis. For those of us that are not Wyckoff-aholics, I'm glad he mentioned it as it lends a base for me to understand where he is coming from. Having spent time here and seen the name plenty, but having never been interested in taking it further, this idea takes something I get (candlesticks) and combines it with something (volume analysis) in a simple and easy to understand fashion; which I've yet to see when the topic is discussed on forums. Simply put, the idea presented here is one that a simple guy like me can understand and work with. It's a very easy to follow explanation and provides very clear entry parameters. It has substance. If the author was influenced by Wyckoff and wants to mention it, so be it. I'm not a devoted Wyckoff follower, so I guess it has no impact on me. It just provides a background from which the idea came from.

I actually attempted to decipher that stuff you guys talk about and found it was simply not worth my time. This article presents the idea in such a way that my simpleton mind can understand it. Something that was never able to be accomplished over pages and pages of abstract speak in that other part of the forum. I simply posted to share the idea as it has some substance behind it being a candle trader myself. The idea presented above incorporates a different view of volume that I might use, but something to consider nonetheless.