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TimRacette

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Everything posted by TimRacette

  1. TimRacette
    Checkout some of the science behind sleep cycles. As humans we complete a full sleep cycle (go through all stages) in roughly 90-mins. I personally break up my night 4x a week into 2 chunks, I sleep for 4.5 hours wake up trade the euro open and then grab another 1.5 or 3 hours before trading the NYSE open. I find I'm more alert and productive when I wake-up on a 90-min increment and feel more refreshed.
  2. TimRacette
    Eliminate the impulse trade and the profits seem to magically appear. I'd turn those 11 mistakes into positive action steps... 1. Create and follow a trading plan. 2. Employ strict money management rules. 3. Place a stop on every trade. 4. Cut your losses quickly, let your winners run patiently. 5. Don't get piggy. Many small, but consistent winners build emotional capital. 6. Never add to a losing position. 7. Earn your way to trade more contracts/shares. 8. Never risk more than 1.5% per trade. 9. At the end of each week withdraw all profits from the week, physically touch the cash, and deposit them into a savings account. 10. Never break rules. Breaking your rules will cause you to fail. 11. Patience Pays.
  3. TimRacette
    As you consider beginning your career as a trader stop and think about what you want to do for you, where do you want trading to take you, and what is your end result. There's a great audio book out called the 4-hr work week by Timothy Ferris it goes through the process of creating passive income, a business that puts money in your pocket whether you are there working or not. For some people THIS is what they really want. A passive income stream that allows them to be financially free and independent from a job. If you can create a passive income stream that covers your living expenses and lifestyle, you then have the freedom to do what you wish and explore other business ventures such as trading. Checkout EminiMind.com for some great resources on E-mini S&P trading. Not to discourage you a trading career, but it's a hard way to make an easy living.
  4. TimRacette
    I'd have to second Tams, both in a joking fashion and in reality. Look at it from this point of view, take a step back for a second and ask yourself what your end goal is. Is it to be financially free, work on your own schedule, be your own boss? Most people would answer yes, and in turn become a trader, HOWEVER, there are other methods of income out there that can create truly passive income. Income generated whether you work on not, small business systems that run themselves, turn-key businesses such as a franchise. There's a great book by Timothy Ferris called The 4-hr work week, it's a little out there, you have to really expand your mind, but it's a phenomenal book that touches on all the key points to creating a passive income. If you can create a passive income stream to cover your expenses and lifestyle then your journey as a trader may be much more successful and rewarding. You have an advantage in that your just beginning, you can 'map out' your life path so to speak, granted things never go according to plan, at least if you have a plan you will end up better off than not having a plan. Best of luck!
  5. TimRacette
    There are so many benefits from the natural food we eat that are overlooked. I'm not a health nut, but I do exercise, get adequate sleep, and eat relatively healthy. Everything in moderation. Once your body gets used to a lifestyle it takes a lot of small changes to make the shift. One step at a time. Treat your body kind and it will thank you.
  6. TimRacette
    So True Kiwi, there have been extensive scientific studies on the positive effects of endorphins released form exercise and a direct lift in mood. Not only do feel better after I exercise, but I think clearer and come up with some of my best ideas while I'm exercising. I ride bikes and hopping on the bike after trading keeps me balanced and my head clear for trading the next day. I also find that breaking up my day into chunks or time blocks helps recharge the system.
  7. TimRacette
    There's some great resources over at EminiMind.com
  8. TimRacette
    One issue I could see is that by back testing or using a paper account you are often able to buy at the bid and sell at the ask. This is not always the case on a live account because in order to get a fill you'd need the mark to be on your bid or below to get a fill (slightly confusing), that being said I have a strategy that has an 85.7% first target hit rate. i.e. I sell half my position at this first target and it gets there 85.7% of the time. I also have a colleague who runs a hedge fund and had only 5 down days in 2010 (no they didn't wipe out his whole year, he was still +5M on years end) so it is possible.
  9. TimRacette
    Great list, mine is almost identical. One book I didn't see was Think and Grow Rich by Napoleon Hill. I has an indirect impact on investing, but it is a phenomenal book nonetheless. I also liked the book called "The Little Book that Beats the Market" It's actually a little book, and it's very short, but I found it incredibly interesting and a very effective strategy.
  10. TimRacette
    hey doll, if you're trading intraday at a prop firm do you have access to the SPY or QQQQs, I say these because they are super liquid and trade with the greatest volume. I personally trade the futures markets, but have traded the index ETFs in the past. Other stocks I've day traded have been AMZN and RIG, but I've just found that if your trading technical setups single item markets like stocks don't have the same level of participation at entry compared to a multi-item market like an ETF. Again, just my observation. Prop firms can be a great way to learn a trading strategy and your surrounded by traders which is another benefit. I'd be interested in hearing how things are going.
  11. TimRacette
    Azioni do you use a Fibonacci or half-way back setup to trade your bounce plays? I've found this works really well in the liquid futures markets like Euro 6E and ES.
  12. TimRacette
    JPx2 thanks for the great tips. Very useful.
  13. TimRacette
    Reading Reminiscences of a Stock Operator is a great first step, I would also pick 2 or 3 stocks and begin to follow them each day. You may end up deciding to trade options, futures, currencies or bonds, but following a couple stocks for a solid month will really begin to build a good foundation for understanding how the market works. Aside from that, journal and making notes about things you see in the markets will be very beneficial. The next book I'd look at would be Mastering the Trade by John Carter. Reading/or listening to these two books multiple times will be more beneficial than scouring the internet and other "how to trade books" imo. Those three things can build a great foundation. - Reading Reminiscences of a Stock Operator - Following 2 or 3 stocks for a month and make notes - Read/Listen to Mastering the Trade There is also a great short audio series over at ShadowTrader.net by clicking Archives > Education. This is not THE way, just what got me started and to where I am today, consistently profitable month after month.
  14. TimRacette
    Personally I love the EuroFX, 6E. If you stick to the Euro open and NYSE open there are a plentiful of setups and liquidity to go around. Over the years between using both the ES and 6E I've found my trading is much more consistent, because a slow day in the ES may be offset by a big day in the Euro. Or a big day in both.
  15. TimRacette
    thanks for sharing upullit4, I will check it out. I'm over @ EminMind.com ~Tim
  16. TimRacette
    While the tick is in reference to only last price, advances and decliners relates to whether or not the stock is + or - on the day. Another thing to consider when using the tick is that there are multiple ways to get the same tick reading... For example lets say there is a market with 5 stocks a reading of +2 on the tick could be a result of 2 upticks and 3 unchanged OR 3 upticks, 1 down tick, 1 unchanged tick or 4 upticks and 1 down tick. For this reason I disregard any tick data less than |400| at 600 I pay attention, 800 is cause for possible action and a 1000 reading on the tick results in direct action (at least for my trading strategy). If anyone is using thinkorswim I have some cool code I created to highlight these tick readings and also produce a "ding" when a +1000 or -1000 tick reading is produced. I'd be happy to share that code. ~Tim
  17. TimRacette
    schwarzseeparadise and lightstar (and everyone else on the thread for that matter), That is so great, starting young is so valuable. Regardless of whether or not you chose to continue down the road of trading long into the future. The lessons and skills you learn along the way are priceless and life changing in my opinion. Understanding how to manage risk, develop and implement a system, and essentially run a business is something that carry's over in all aspects of life. I'm constantly hearing people from other disciplines like real estate, entrepreneurs, small business owners, and athletes talk about these very principles. I can't remember the basketball player who said this, but he was talking in an interview about how his dream was to make it into the NBA (which he has now achieved) and this is what he said... "The way I look at it is, I will give it my all, do everything I can do and give myself the best opportunity to make it, and if I do I will have learned the lessons of hard work, responsibility, perseverance, and determination (to name a few), if however I don't make it then I will know that I have given it my all and take away the lessons of hard work, responsibility, perseverance, and determination..." Just like Napoleon Hill talks about in the book Think and Grow Rich, unleash your burning desire and follow your passion and if you are willing to do whatever it takes to achieve it no matter how long it takes, you will.
  18. TimRacette
    That's awesome Mystic, I actually race mountain bikes (bikes without motors). Street bikes get me in too much trouble, haha. Heading out to AZ the week of March rollover actually to get some riding in before race season starts. Good idea on the hobbies section, I bet lots of us have more in common than we know.
  19. TimRacette
    Gladwell's books are phenomenal. In the book Blink he talks about how traders and military leaders operate under the same mindset and how we use our unconscious or "snap judgments" to make decisions well before we're consciously aware.
  20. TimRacette
    These are some of the things I have included in my trading plan and find that every top trader addresses them to some extent... Max Loss per Trade Max Daily Loss Max Weekly Loss After how many losers in a row will I stop trading for the day? How many contracts or shares will I trade? What is my exact entry setup? When will I take a profit? Will I move my stop up once the trade goes my way? These are the top 10 rules I follow everyday... 1. Plan your trade and trade your plan. 2. Keep things simple. 3. Remain focused and disciplined. 4. Fully understand the markets in which you are trading. 5. Only place trades when you are in a calm state. Do not trade if you’re in a time crunch or frustrated. 6. Be selective with your trades! 7. Place stops at the time you enter a position. A stop can only be tightened, never widened. 8. Keep honest and meticulous records. 9. Don’t chase trades. 10. Read rules EVERYDAY! Someone once said to me “Treat trading as a business not a hobby, hobbies cost money, successful businesses make money.” I trade by that quote and it has kept me consistently profitable month after month.
  21. TimRacette
    Hey everyone, I'm Tim, a Chicagoland native and full time trader as of October 2009. I trade the E-mini S&P & Euro FX Futures. I've been involved with trading since 2007 beginning with stocks, learning how market internals work, moving to options, and ended up where I am now in futures as a day trader. When I’m not trading I'm usually outside riding or racing my bike. I blog over at EminiMind and am involved in a weekly entrepreneurial mastermind group. I like mountain biking, microbreweries, exploring new places, and good design. I look forward to getting to know some of you on the forum. ~Tim
  22. TimRacette
    I'd be interested to hear what things have worked for you in your trading Shauna. Do you have a background that is condusive to trading, maybe a non-traditional path?
  23. TimRacette
    Reminiscences of a Stock Operator & Mastering the Trade and Pit Bull are my top three trading books of all time especially for new traders. I have more listed over at as well.
  24. TimRacette
    The magic and self fulfilling prophecy. I've found understanding human behavioral psychology is more important than understanding economics when it comes to trading profitably and consistently.
  25. TimRacette
    Great list, creating that framework helps me sort through the chaos of the market. At the end of the day I ask myself these questions... - Did I follow my rules? - Did I take all the valid setups? - Did I hold to my targets? You can never had too much data, so I always record everything and love excel for all of that analysis.
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