Can anyone teach me trading?

Discussion in 'Hook Up' started by Mediterranean_star, Sep 3, 2021.

  1. cesfx


    A newbie scalping Nasdaq? Wow... First post asking for help but you are scalping Nasdaq. Why do you need help? Are you losing money, or just bored?

    If I was a professional trader swinging millions and pulling a yearly 6,7 fig, I would consider selling my time for 12k as cheap, an act of generosity from my kind giving soul, with a symbolic fee to filter headaches and not very committed and respectful customers. I could do it for free some someone I like.

    Not saying this is always the case, but if one needs a mentor and like to pay for one, does anything like "free" or "affordable" sound interesting?
    #31     Sep 4, 2021
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  2. There's only One reason an expert, magical, trader would give away, or sell away, his trading secrets, knowledge and experience...because it is more Profitable to do so, rather then continue the grind privately.

    If someone Truly had know-how on how to make, for example, 20 million a year in the market....Do you think he would sell this kindness, generosity and knowledge for a $399 or $3,999 course fee, or VIP Subscription service?

    Always. Follow. The. Money.

    Look at Renaissance Technologies, Jim Simons,...a computer algo hedge fund. They average a 66% return per year...for the past 30 years. They are very private. Do they advertise their knowledge to everyone in the public and competitors for free or for a relatively measly fee,
    The only people who start services, education, courses, subscriptions...are nothing but 2-bit Salesmen.
    Last edited: Sep 4, 2021
    #32     Sep 4, 2021
  3. taowave


    Well said...
    The naysayers are the same guys who wont pay up for a good motorcycle Helmut..

    "You have a 10 dollar head,buy a 10 dollar helmut"


    #33     Sep 4, 2021
  4. .

    Hi Mediterranean,

    Most books related to trading are not really very helpful for new traders trying to develop their own approach, but some of them are. I've pasted below a comment I made a while back about books that I believe do have a lot of value.

    Good luck to you,

    "I have read many books. Some were good primarily because they were very interesting/ entertaining (e.g., Pit Bull, Winner Take All, Liar's Poker, Schwager's Market Wizard books, Confessions of a Street Addict, Running Money, Trend Following, Reminiscences of a Stock Operator, Evidence-Based Technical Analysis, Hedgehogging, Fooled By Randomness and several others).

    There were only a few that I thought were extremely practical, so much so that I would recommend them to a new trader. The most immediately useful ones that I wish I had been able to read when I started out are probably Weissman's Trade Like a Casino, Elder's How I Trade For a Living[edit: actually called Trading for a Living], Chande's Beyond Technical Analysis (2nd ed.), Tharp's Trade Your Way to Financial Freedom, and possibly the psychology and performance-related books of Mark Douglas and Brett Steenbarger. I don't agree with everything written in these books, but I believe that they have a lot of good, practical advice that makes them among the best that I have seen."
    #34     Sep 4, 2021
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  5. taowave


    Ridiculous post...

    Google Mark Ritchie,one of the founders of CRT.He started the largest option market making firm in the world and was bought out by Nations Bank...Ritchie Jr,ponied up and studied with Minervini. He has nothing but great things to say about Mark...

    I get that you wouldn't pay that much for "mentoring",but what do you think a great discretionary trader should charge for his time????

    Top personal trainers/Bjj teachers get over 300 per hour. 12k all in is not that much..

    As for Simmons,that's a silly comparison. He's a quant not discretionary trader.

    #35     Sep 4, 2021
  6. I've been able to come up with some decent automated strategies based on Minervini's ideas, just buying off technicals. So I can confirm there's already a solid edge there, and I'd believe there's a much bigger one with his decades of market experience and taking into account fundamentals like earnings, etc. The price point for his service is a bit steep though since he's a discretionary trader, so it's obviously super hard to replicate anywhere near his kind of performance. From a business owner point of view, it'd be ok to sell some of this knowledge to make even more money because most people won't be able to do it anyway. Yes, big difference between quant and discretionary trader. You definitely wouldn't sell a fully systematic strategy you personally trade that could actually print money, but keep it to yourself.
    Last edited: Sep 4, 2021
    #36     Sep 4, 2021
  7. I'm personally skeptical of Minervini as a person, though less so of his strategy. The basic underpinning of his strategy is security selection and momentum that is very popular among long/short hedge funds. Most of the other stuff he talks about adds little to no value and takes away from the underlying (beta returns) of the strategy.

    For all of you newbie traders out there, including OP, who are non-expert/non-professional, the best advice I can give you is to:
    1. Find a small group of stocks (10-25) that you think will outperform over the market cycle
    2. Understand what conditions make them (in aggregate) outperform vs. spx through various time periods (quarterly and annually)
    3. Cover the stocks religiously (have daily alerts, watch liquidity, read 13-fs, conduct fundamental analysis, etc.)
    4. Apply a trend following strategy broadly (long winners short losers) and a mean reverting strategy (buy the dips) narrowly
    5. Keep your eyes on information that impacts #2 (could be macro, like interest rate moves or market conditions)
    6. Use tight risk management on mean reverting trades, and looser risk management on trend following trades (unless the conditions for a regime change in #2 occur, in which case, make everything tight)

    Additional tips:
    • A great place to start for #1 is to focus on 1-2 industry groups that you have a natural interest in, such as enterprise software or automobiles.
    • Get Xenith from Metastock (it's a paired down version of Refinitiv Eikon, which is a data terminal like Bloomberg -- the retail version is only 99-150/mo!!! This is the only money you need to spend for data lol)
    • Don't worry too much about "old school" technical analysis (e.g. candle stick patterns on a chart) -- learn about "new school" technical analysis (quantitative analysis) such as equity factors (value, momentum, quality, size, volatility, etc.)
    • Don't trade "price action" -- you can respond to "price action" on a stock you cover, but only if you have a view
    • Don't worry about "institutions" and "market makers" -- literally everything anyone tells you about those two types of market actors is fake lol -- instead, if you want to know what the mood of market participants are, read equity research from the big banks or see what big investors have to say about the market (e.g. if you hear blackrock saying stocks are expensive, you can guess that they are advising their clients to reduce exposure to equities, which can mean an incremental decrease in bid volume)
    • Review your trading weekly and quarterly
    Best of luck
    Last edited: Sep 4, 2021
    #37     Sep 4, 2021
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  8. taowave


    If you read Momentum Masters by Schwager,you will see that he and the others are pretty in line with your way of thinking...Zanger is more of a pure MOMO guy and less in line with fundamentals..

    Loosely defined,they are Trend followers,high Momo guys with really good position sizing risk management skills.

    #38     Sep 4, 2021
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  9. good point (and added momentum), though i'm hesitant to call them "momo" guys because they are trading momentum on a defined list of securities vs. systematically. IMO that makes them more exposed to the equity factors (which can experience persistence time series momentum) in their coverage universe than to pure momentum (like a CTA of momentum fund). The smarter guys study the sources of their alpha and tailor their trading strategy to it. The not so smart guys (but still successful) use blunt tools like rsi or technical patterns, but IMO using a basic mean reverting approach (the benchmark for any coverage based trading) with tight risk management would outperform.
    #39     Sep 4, 2021
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  10. sandy_s


    You are a newbie to trading and you are scalping nasdaq? Sounds like you are new to sky diving and you want to jump without a parachute.

    In your position, I would try to learn some basic things about trading, trader’s psychology, market movement, etc...

    This field is a life long easy path...but very rewarding for those who ask and think for themselves
    #40     Sep 4, 2021
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