daedalus

I was under the impression that as long as you were a U.S. citizen you paid U.S. taxes regardless of where your trading occurs, the securities traded, or your accounts held?

Benny my advice to you is NEVER add to losers. EVER. Thats like the first rule of trading IMHO. But it sounds like you found out why thats a rule. THe key to this game is staying solvent through your bad decisions, not adding to them! To the OP - my worst loss wasn't my fault actually... I got stuck in a position when my broker went down. Couldn't exit, some of my orders to get out actually doubled my position size and there was nothing I could do but sit and watch as the pit launched the market against us. Thankfully, the broker refunded the loss as I was documenting the problems with screenshots and video during the entire process. One of the worst and most emotionally stressful days of trading i've ever had. Its one thing to make a bad decision, its quite another to be unable to fix it.

^^ Very understandable. I'm sure it would effect me in that same way.

I think "home runs" are tempting to all traders. As far as more than one security - i don't know. This year so far i've only trade the ES and I plan to only trade that for a couple more months at least. So i'm only looking at one security right now but it doesn't change my trade plan or need for a "home run". I just don't think they occur often enough to bet on personally. That being said, a "home run" is subjective. Maybe my fib target area that I cover at is a "home run" for a scalper, etc... But in terms of the ES as its trading right now. I'm perfectly happy taking 3-6 points in a swing because I don't see much more than that being offered on a consistent basis.

Doesn't clayburg run all of his systems off a remote server somewhere so they are always up? I swear he mentioned that in one of his webinars or nightly videos. I watch almost every video he puts out and his systems do work - there is no other word for them. HOWEVER - to be truly effective you need to be able utilize them as he does by using multiple timeframes and instruments to hedge out risk against one another. I think he trades like over 20 different timeframes and charts... and thats how he does so well over all IMO. But it also proves that it does work. If I had the account size to support it I would do it. Why not? Hes closed out profits of over 120k a week and i've seen very few weeks where he loses money (and I think the most i've ever seen him lose is like 26k in a week).

This is a great thread. I remember the one useful thing one of my business prof's told me - entrepreneurs #1 mistake is forgetting to pay themselves a salary at all - or paying themselves too much. Its a fine line. I am on the same ideology of Brownsfan - I hate bills and try to pay everything that I can as far in advance as I can. I may be a bit neurotic but the idea of this profession and the fact that I may not have income every month makes me very cautious with and how I spend my money and I like knowing that I don't have any pressing bills 6 months out. That being said, I have a very small account right now and i'm just trying to grow it so i'm actually taking hardly any out at all. I have the unique situation of having some people who loaned me money to get this account going so I pay them 10% of profits each month. I take an additional 5% out to pay myself. Keep in mind though - this is simply so I still have a TINY bit of cash for food, maybe a movie, etc but to keep my maximum capital in my accounts where I can grow it. I'm at the point where i'm working towards being able to trade 10 lots - and i'm by no means there yet so I keep as much in the accounts as I possibly can. I know a couple guys who do start every month with X and at the end they take everything else out. It seems like a logical way to go about it except I kind of feel like i'd be cutting my profitability short doing that. Yes you get all that money every month but you're also going to be capping you're income level every month. The OP brings up an interesting point about taking that money out at the end of each month so it doesn't influence you're trade size and you don't get in over you're head. Part of me agrees with this logic (I can see where it could cause problems) and part of me disagrees. I disagree from the standpoint that if you are trading 1 lot per X amount of money then your $ risk per lot is 1Y. If you increase your account size to 2X then you can trade 2 lots with still only risking that initial 1Y. So be it 10 lots on 100k or 1 lot on 10k i'm still risking the same $ per lot. That makes me think why not trade bigger size as your account grows? Its the same $ risk is it not? I'm on the fence personally - lets put it this way - i'm not in a position to have any of the problems with big size or paying myself a big salary each month right now. But it is something that I am already starting to ponder. Either way - great thread, great points, great discussion. Keep it up!

FX and the e-mini's. Though right now i'm focusing primarily on the ES.

Personally I choose to take high probability profits at targets. I do this for a number of reasons. 1) I've done enough backtesting to know that its probable the types of moves i'm getting in to will die around that area (I use Fib targets). It is PROBABLE that the move will stop there. It is LESS PROBABLE it will continue on for another 2x's the profit. It is MUCH LESS PROBABLE it will continue on for another 4x's the profit. 2) I rather trade a higher win rate target profit with less "home runs" than a lower win rate with a few more "home runs". I do this because I feel the efficiency of each trade is much higher and because getting more targets more of the time keeps my consistency and confidence in my trade plan high. I find its much less stressing emotionally. 3) Markets rarely trend. Honestly (don't markets trend something like 20-30% of the time? I swear i read that somewhere... either way I believe it) Take the ES for example... Very rarely do we get a gap and go day that just runs in a direction the entire day that you could get rich on. That happens like once or twice a month. Therefore, the other 95% of the days is congestive quick spurts and backfill onto itself, reversals, etc. Holding for the "big winner" when statistically the greatest probability is that market conditions don't (and won't) give you that opportunity doesn't seem like the best shot at making consistent money. Yes that one or two days you'll kill it. But you'll give it all back (and more) trying to manage trades like that very other day. Remember, we make money on the rule - NOT THE EXCEPTION TO IT! Basically, I feel that as a trader my goal is not to get every ounce of a swing nailed in profits. I'm not calling tops and i'm not calling bottoms. What i'm doing is trying to take my chunk of predictable profits in the middle and go onto the next setup. The less time I have a position in the market the less market risk I have. The quicker I can get in and out with profit at my target the better because my systemic risk is reduced. Did I get every bit of profit? No - but what I did do was get the amount I bargained for when I took the position and thats all I can ask for.

If it were me I would go for the newer Intel i7 systems as its the "latest & greatest" out right now. You pay a hundred bucks or so premium over the older Core Duo 2's but your technology won't be out of date by the time you purchase it... http://www.cyberpowerpc.com/system/Intel_Core_i7_Configurator/detail Their base one for 799.99 looks just dandy as it is configured stock. You already are going to have 3GB Memory and a decent video card for that price and a very nice CPU. Upgrade what you want to stay within your budget... If you were going to spend an extra 100-150 bucks off the default configuration I would upgrade the memory to one with a faster frontside bus (the 1600mhz is a 29.00 upgrade), I would upgrade the CPU heatsink to any of the other options (see what you like on the comparison, they are all about the same price) for 50.00. Keep things even cooler! And then upgrade the Video card to either a 9600GT 512mb or the 9500GT 1GB for 20-40 bucks depending on what you want. Contrary to popular belife, charting platforms are not graphic intensive. Charting requires good memory, a fast frontside bus, a solid hard drive, and a fast cpu. So for between 800-900.00 depending on how you outfit it you'll have a solid piece of equipment to work with that won't give you any problems running any of your trading stuff. Lets put it this way. I use a computer that is less than half as powerful (2GB mem, 7200RPM HD, Duo 2 Processor, and an ATI X1600 256mb memory card) as the base configuration of that i7 at 799.00 and i've run tradestation with over 100 charts open at one time with live data, two broker platforms up without so much as a glitch.

I think all computers "reliability" is more or less equal. Many of the same parts you're going to find on a dell can be found on any other machine and likewise. Only so many manufactures make motherboards, hard drives, etc. I say find some online builder like http://www.cyberpowerpc.com/ and just buy a gaming rig that fits your price range. It comes built, you can customize features and most of them come with more than enough CPU power, HD, and Memory out of the box. What i've found in terms of reliability relates directly to what your trade computer is used for. If you're trading on it AND surfing the internet with it then your probability of it crashing due to malware, viruses, trojans, etc. SKYROCKETS. This isn't the "Computers Reliability" at fault, its what you're using it for . Likewise if you're using your trading computer for gaming... the likelihood of something going wrong from a graphics card driver update, or a patch on a game, or the added stress on the components for the high heat during prolonged gaming again skyrockets. What I decided to do was this: Buy 1 PC FOR ONLY TRADING. Ie the ONLY software on it is my Tradestation platform and my brokerage platform. NOTHING ELSE. This avoids registry errors, the temptation to use it to browse online, etc. Use a separate computer for browsing the internet and playing games. If it goes to shit at least it doesn't affect you're P/L. You cn avoid 90% of your reliability problems if you use your head and restrict the usage of the computer to what it was purchased to be used for!

^^^ Yes. But good luck on finding a quality resource that can teach you how to do it properly. I spent the better part of f3 months trying to learn how to read tape. The only resources I found were: Trade The Markets (Huebert used to do tape reading videos) Traders Laboratory (Soultrader has a video or two on it - originally how I found this place!) While both give good info I was never able to adapt it to my own trading because it requires a lot more interpretation that I wanted to give it. I like finite rules in my trade plan because it helps me perform better when real $$$ is on the line and keeps my consistency rock solid. For others that may be the complete opposite and tape reading may be something they want to look into more.

eurusd. most traded pair. that or gbpusd. most systems/methods you'll find trade one or the other.

oh don't get me wrong... as far as "what we do" I don't mean that in a literal sense of trying to be stupid and "guess" what stock will rise and fall of a freaking news event... but I just mean the emotional/psychological aspect of the job. No one ever quite understands why this profession can be so difficult and trying.

This is amazing. I've wanted to watch something like this for so long. If for no other reason to show my family that what I do isn't easy and give them a greater understanding of what we do and what we are up against.

I personally use the AVG suite and have been very impressed with it. Not a resource hog, never had any issues with it. Runs completely in the background, updates automatically, built in firewall, rootkit scans, spyware protection, internet link protection, etc... Great program. If I wasn't using this I would be using NOD32...

Isn't this called spoofing? The big boys put huge bids in at various levels to bluff one another and will pull them just as quickly as price gets attracted to those levels...

I thought the recent CME bump in margin rates carried over into all of the brokers. I'm surprised to see other still offering low intraday rates. I use Tradestation and the 1000 intraday margin has tripled to 3100 in the past two months due to market volatility.

use the 2.0 one, you'll have to format it to get it to look like you want with the dots and the histogram.

use the one i attached on the first page...

Wise words right here!

I looked at it last night and saw lots of dangerous setups, no real management, and his videos? Well its pretty easy to say "this signal went +38.75 points to the swing high"... well yea... my signal probably went +30 too, but my METHOD didn't get me all of that, and his didn't either. Anyone who has to skirt the truth about their methodology to get people to buy it is someone I don't want to learn from. Stay away from this one. There are better ways to use trendlines.

Keep the posts coming... I think you're on to something and you are taking good trades combining pin bars / inverted hammers and candlesticks with the 20 ema. Looks like the only thing you really need to standardize is your management/exits.

My opinion. Do it. But don't open your account with 1000.00. Expect, FULLY EXPECT to LOSE everything you deposit. So if you only have 1000.00, you should deposit 50 bucks with Oanda into a MICRO account. That way you can trade LIVE, not DEMO from the get go and risk a minimal amount of money. You screw up and lose it all, you get to start over again 20x's. If you can take the 50.00 to 100.00 consider repeating that a couple times before you can even consider putting any money up front. People always say you need a lot of capital to start. I disagree on the basis that if you TRULY know what you're doing and are consistently successful you should be able to grow any amount of money into any amount of money. The difference is starting small requires MUCH MUCH MUCH more discipline and consistency over the long run to make any appreciable growth. You don't need 20k to start if you are a consistently profitable trader. Its not about the capital in my opinion, its about the consistency. Does more capital = more "buffer" room before your out looking for a job again? Sure. But you don't need to 20k to buffer your losses if you're already good enough not to make them. And if you're not good enough to not make them then you've got no purpose to be trading with 20k in your trading account. Deposit 50 bucks. Learn. Lose due to YOU (not your method) screwing up. Repeat until step 3 is absent. Go from there. Just don't DEMO. There is so much talk about demo trading, we tell everyone new to trading to DEMO DEMO DEMO. Then they do with their 50k practice account, they make 2-3k a day and think they got it all figured out and the Ferrari is gonna be in the garage by the end of the month. Then they go live with their 5k and its wiped from their account faster than they can say "I Don't know what the hell i'm doing". Much of this is due to the psychological aspects of trading, fear of loss, greed, anger, all of it. And it surfaces as soon as you put real money on the line. So what you need to do is never take the easy route and Demo. Use live money from day one so your actions ALWAYS have a consequence and you don't get to write off stupidity as "oh, well at least it was only a demo account". Go out and buy Trading in the Zone by Mark Douglas. Read it twice before you place a trade. It would've saved me thousands if I had read it prior to trading. It is all about the psychological / emotional aspect of trading. That is what will be the hardest thing for 99% of trading to master. A trading method is easy. Pulling the trigger, managing a trade without emotion, and taking profit without fear or greed entering into the equation is the hard part. Hope this helps!

You can do tick charts on any spot pair (i.e. EURUSD). If you want actual quoted volume you'll have to go to a regulated contract on the CME (i.e. @EC). Very different markets. I think for learning how to do technical analysis Forex is a better alternative. You don't have to worry about finding a new stock to watch and analyze, you can just focus on one currency pair and leave it at that. There is also a lot of forex-specific education available for new traders, and I feel MUCH MUCH more is available for the noobie in materials for Forex than in equities.

Nobody is "starting up with you". Calm down man. Your amongst friends.