New To Stock Trading and Overwhelmed.

[dwolcott 10]

My name is Dan and I am new to the trading realm. I actually received my degree in finance so I have a little knowledge of markets but in the classroom they really didn't help dispel the the overwhelming anxieties of actually getting into the market (investing or trading) I have decided to start trading as opposed to putting a whole lot of time investing due to the fact that I am interested at amassing some wealth quicker for now. My biggest problem is with the 3600 + stocks listed on just the NYSE alone I have a hard time finding stocks to follow. I have read a few beginner trading books they give you plenty of advise on what to look for once you find stocks but they really don't delve into the best way to find those stocks. Right now I watch market movers but I kind of feel its to late once they become market movers. Any advice and or mentorship will be greatly appreciated.

[mslk 10]

i would suggest limiting the scope of your research into something manageable. its very easy to get overwhelmed with all the info out there. think about this, if you watch trades on trading floors (on tv, on the web, or even in person), you'll see that they tend to trade the same stocks or instruments daily. they don't necessarily search for something new everyday.. as an example, find 10 symbols and do all the fundamental and technical research on them all. then pick two 'peers' for each stock based on sector and industry groups. line up all major variables - things like price-to-book, price\earnings, etc; do a layover chart and see how their picks stack up against the peers. then add the market indexes (djia, sp500, etc) to the layover and see how they fare against the entire market.

 

this should help you determine which symbols you want to trade - without getting overwhelmed. i only trade 12 or so stocks\options

 

good luck!

- mslk

[Tradewinds 12]

My name is Dan and I am new to the trading realm.

 

There are successful traders who didn't become successful until 2 or more years into trading. I've heard enough stories to believe that it takes at least a couple of years. How much time are you putting into trading? Full time?

 

You are doing exactly what every new trader does. It's not bad, it just seems to be part of the journey. I guess it's important to quickly learn what doesn't work. You don't want to be 2 years into some method and figure out it's not for you.

 

When I first got an account I was putting 12 mini charts on my screen, and trying to watch scrolling news feeds, and trying to make sense of all the information, and I realized that I just can't operate that way. Maybe other people can, but I couldn't, and I have no desire to. I would pick ONE thing to trade, and practice trade it until you can make money very consistently. That's just my opinion.

[NYCkopp 10]

Lots of us are new ... if you're dedicated, every day you'll learn more and more. In one week, I went from knowing nothing to knowing a lot. These forums are a great resource as well as the rest of the internet. You won't learn it all overnight but if you keep going at it, it'll come.

 

Stick to investments to stuff you're knowledgeable in. That seems to be a given with everyone around here. The more you know about a company or market, the more successful you can be in making decisions.

 

Good luck in your journey!

[mike21 10]

Hi Dan,

 

From your post I'm not really sure what type of trading you plan on doing. Intra-day, swing, position?

 

I day-trade stocks, so my comments are based on my style of trading. I'm a technical trader and don't care about fundamentals. From my experience most technical stock day-traders only trade stocks that are 'in play.' e.g. - earnings, guidance, upgrades/downgrades, news, etc. My watchlist is typically about 30 stocks or more and changes daily. 30 stocks may sound like a lot but I can scroll through my list in seconds. Right now it's earnings season so, for me, it's hard to keep my list that small.

 

First you need a stock screener. FINVIZ.com is probably the best free stock screener. Also most brokers have a screener. Screen for the types of stocks you want to trade and go from there. I typically look for stocks over $20 that average over 1m shares a day. You can find an earnings calendar at Briefing.com and other sites.

 

This should get you started.

 

~Mike

[SIUYA 11]

due to the fact that I am interested at amassing some wealth quicker for now.

 

first get that out of the head or it it mess you up regardless of how good your system is. A lot of this is mental - preparation and then revision, and with that goal in your head it wont help. (We all understand what you mean.....but it wont help mentally)

 

My biggest problem is with the 3600 + stocks listed on just the NYSE alone I have a hard time finding stocks to follow.

 

Do as others say....narrow it down first

 

I have read a few beginner trading books they give you plenty of advise on what to look for once you find stocks but they really don't delve into the best way to find those stocks. Right now I watch market movers but I kind of feel its to late once they become market movers. Any advice and or mentorship will be greatly appreciated.

 

And the crux of your problem is this.....if you really have a plan to trade, and you have really thought about how you expect to make money from an underlying philosophy of the markets and how they work and how you can make money from them, then you should then know which stocks best suit that plan

If you have something that is so robust that diversification will work, then trade it as a portfolio. Then you have issues of selection, elimination of stocks, screening and the various techinical and data issues associated with that

My point is...not to dissuade you is that the horse seems before the cart.

Otherwise...cross your fingers you get a mentor, then cross your fingers they are good, and then expect to wait to be paid, etc; etc;....

Good luck on the start of your journey.

[dwolcott 10]

Thank you all for the responses and the wishes for my journey. I appreciate it and look forward to putting it to practice.

[MadMarketScientist 11]

The A Look at a Stock Trader's Day thread is a look at how a stock trader structures his day. I wanted to highlight this part:

1) I trade S & P 500 stocks only, except for an occassional IBD 100 stock.

 

2) I monitor the 10-12 biggest gainers and losers on a percentage basis. I use the biggest gainers for long candidates and biggest losers for short candidates.

 

3) I select trades based upon support/resistance, chart patterns etc.

 

4) All trades are based on decisions made watching the 5 minute chart.

 

5) I use no indicators other than I do from time to time place a 20 EMA on the 5 minute chart. I will sometimes use pullbacks to the 20 EMA to buy/sell short.

 

So I am usually watching just 20 stocks, though I have the whole SP500 list on my screen. I simply scroll down through the top 10-12 gainers, and then I click on the %change column, and the watchlist reverses so that the biggest losers are now at the topof the list. I scroll down through the top 10-12 biggest losers. That is how I narrow the universe of stocks down.

 

When I am scrolling through the 10-24 stocks that comprise the biggest winners/losers of the moment, I am looking for potential breakouts from consolidations, flags/pennants, etc. As an example, I re-attached the CME chart from today. I was a buyer in the area highlighted within the green ellispse. As I always say, nothing fancy.

 

Also, you will see that I included my watchlist in the screenshot.

 

Best Wishes,

 

Thales

 

thx

MMS