Advice on Picking What to Trade?

[mslk 10]

Hi,

 

I am just starting out, trying learn as much as I can about trading. But there are so many instruments I can trade and I suspect picking the right one is probably one of the most important decisions I can make? Any advice for someone starting out?

 

I read the thread about why the eMini stinks ... how about forex or options? Does anyone have suggestions or advice on how you picked what you trade?

 

Thanks everyone

mslk

[Tams 20]

Hi,

 

I am just starting out, trying learn as much as I can about trading. But there are so many instruments I can trade and I suspect picking the right one is probably one of the most important decisions I can make? Any advice for someone starting out?

 

I read the thread about why the eMini stinks ... how about forex or options? Does anyone have suggestions or advice on how you picked what you trade?

 

Thanks everyone

mslk

 

factor affecting what to trade:

 

1. how much money do you have ? (free money)

 

2. how much time do you have ?

 

3. how much risk can you take? ie how much of the free money you can lose before feeling the pain.

 

4. what do your friends trade?

 

5. what books have you read?

[mslk 10]

To answer your questions ...

 

1. how much money do you have ? (free money)

$10k

 

2. how much time do you have ?

intermittent time during the day (I have full-time job) and time on evenings and weekends

 

3. how much risk can you take? ie how much of the free money you can lose before feeling the pain.

$10k! :-)

 

4. what do your friends trade?

they don't, mostly value\buy-hold investors

 

5. what books have you read?

books on TA and trend trading ... but they don't give much advice on specific instruments

 

thanks,

mslk

[Tams 20]

To answer your questions ...

 

1. how much money do you have ? (free money)

$10k

 

2. how much time do you have ?

intermittent time during the day (I have full-time job) and time on evenings and weekends

 

3. how much risk can you take? ie how much of the free money you can lose before feeling the pain.

$10k! :-)

 

4. what do your friends trade?

they don't, mostly value\buy-hold investors

 

5. what books have you read?

books on TA and trend trading ... but they don't give much advice on specific instruments

 

thanks,

mslk

 

1. $10k is a good starting size.

 

2. don't trade the futures if you have a full time job... too distracting, you will ended up checking the market during the day. you will lose both your job and your capital

 

3. bad attitude... you will lose what you are prepared to lose.

 

4. trading/investing what your friends trade will help you get up and run faster and quicker (synergy factor).

remember, it does not matter what and how you trade... this is not your career. no matter what or how you trade, you will most likely ended up with the same profit/loss in the first few years. You can change your friends, or change what/how you trade/invest.

 

5. what you have read indicates your desire and inclination. ie you are not into options, or value trading...

[TheNegotiator 13]

Futures are a good starting point but perhaps forex would be suitable for your trend following methods. Lots of competition with forex brokers which is good too.