Trading Help & Advice

[mohaalmo]

Hi everyone,

I'm writing this thread with some frustration, sadness, and dissepiments.

I want to to change my current satiation. I have been trading for four years now. I have made some money but lost a lot. I don't have a strategy or an understanding of the stocks market. However, I want to change. I need help with building a chart setup in TOS. I want to split my capital, a half will be used for day trading and another half for swing (I don't even understand it well). What indicators would help me for these two? What setup? Any advice or recommendations would help

thanks,

 

[Clark2001]

Hi everyone,

I'm writing this thread with some frustration, sadness, and dissepiments.

I want to to change my current satiation. I have been trading for four years now. I have made some money but lost a lot. I don't have a strategy or an understanding of the stocks market. However, I want to change. I need help with building a chart setup in TOS. I want to split my capital, a half will be used for day trading and another half for swing (I don't even understand it well). What indicators would help me for these two? What setup? Any advice or recommendations would help

thanks,

Hi my friend, you are certainly not alone in the journey of trading. I have also been at it for 4 years and have been profitable at times but have blown a few accounts.

Trading is a process of time and patience and sometimes it takes years to become profitable. In my journey I have played with many chart indicators but I will tell you no matter what you have on your chart the market will always root back to price action. Intuition will be your best indicator and the only we can be profitable is by first understanding ourselves and what works best.

Chart indicators are best used to help make a decision that works in tandem with a strategy, not by themselves. If you do not understand it, I would first recommend going back and trading on simulated account to help practice, this way your not risking any money at all.

I can’t tell you how to trade cause everyone is different but I would recommend looking up the methods: [Support and Resistance] and [Supply and Demand]. There a lot of resources on YouTube that can help but these are the two baseline methods that market will always revolve around.

Trading can be frustrating, especially when we’re not profitable but again this takes time. I’ve known some people that took 8 years to get it right so you are most definitely not alone. This is only my take on this subject but I hope others can also offer pieces of advice that can help you in your trading journey.

Be well and take care!

 

[Trader Raider]

I have made some money but lost a lot. I don't have a strategy or an understanding of the stocks market.

NOT FINANCIAL ADVICE

Perhaps it would be helpful for you to spend time in paper trading while you are learning more about price action and developing a strategy that works for you. If it frustrates you to imagine not making money during the learning phase, you can consider parking your funds in something like treasuries or high-interest savings. That would allow you to earn while you learn

One of the biggest mistakes I made was trying to trade everything under the sun. When I stopped that and decided to follow just one instrument and learn it well, a lot of things started falling into place. It became easier to understand what indicators were (and weren't!) telling me. Same with recognizing patterns, anticipating measured moves, etc. For me, anyway, a lot fell into place when I watched one instrument across several timeframes instead of looking at dozens of different instruments. Of course, your learning style may be different.

Best wishes and happy trading.

 

[c3rfc1]

Everyone goes through what you are experiencing. I strongly recommend:

• the Schwab free Coaching videos and live classes. https://www.youtube.com/@tradertalkswebcasts
• Another great source is ShadowTrader.net. This used be be a free source on the TOS platform, however after the acquisition by Schwab the service was dropped. I still use them, great staff. My favorite is Brad Agunas.

Keep it simple works for me. Learn to read the chart, price should be your trigger then confirm with no more than 2 indicators. Any more than two indicators you are looking at the same data through different lens.

Slow and steady my friend, may profits be with you always.

 

[Splinter]

Trading is a very personal endeavor. So many parameters, techniques and markets to choose from. My first big frustration was figuring which instrument to trade, then comes learning all the well known strategies and basic components of the market (price action/volume etc). Then comes developing a profitable strategy that works with your schedule and personality, which can take a long time. Sprinkle in figuring out what kind of risk you feel comfortable with then of course the whole psychological aspect. It truly is a hard journey. Never feel bad about yourself and what has happened in the past regarding your trading experience, its the learning process that all traders go through.

My advice would be to get a basic understanding of price action and volume. Look into how the two relate to one another. "Volume Spread Analysis" can be very helpful. Also the Volume Profile can be interesting as well. (both of them searchable on this forum)

I'm on board with the above posters in that indicators are just telling you what your seeing through price action and volume. I do find use in indicators in that they provide a different perspective. I recommend investigating the different types of leading and lagging indicators (trend, momentum, volume etc). There is great info on this forum on creating a mix of indicators of different types that can give you a clearer view of what price is doing. Check out the "Explore" button on the top of the page.

Also I've found concentrating on very few instruments has been a big help. Its important to really watch and see how the instrument moves throughout the day. What repeatable patterns develop. What strategy works with this instrument. Is this instrument liquid enough that I can get in and out quickly and easily with minor slippage? Can I see things clearer with traditional candles or heikin ashi or Renko/Range bars? Take the time to experiment and see what makes you feel most comfortable and confident as your developing your strategy.

When you come up with what you think is a viable strategy then test it... a lot. Test it through choppy days when there's not a lot of momentum. Test it on FOMC days and through other big news. Do mock trades when the parameters of your strategy have been met and see how it pans out. Are you stopping out early all the time?... make tweaks and test it some more.

I hope this helps a bit... like I said this a tough journey and everyone's journey is different. What's great is that we have this supportive community to fall back on.

 

[mohaalmo]

Hi my friend, you are certainly not alone in the journey of trading. I have also been at it for 4 years and have been profitable at times but have blown a few accounts.

Trading is a process of time and patience and sometimes it takes years to become profitable. In my journey I have played with many chart indicators but I will tell you no matter what you have on your chart the market will always root back to price action. Intuition will be your best indicator and the only we can be profitable is by first understanding ourselves and what works best.

Chart indicators are best used to help make a decision that works in tandem with a strategy, not by themselves. If you do not understand it, I would first recommend going back and trading on simulated account to help practice, this way your not risking any money at all.

I can’t tell you how to trade cause everyone is different but I would recommend looking up the methods: [Support and Resistance] and [Supply and Demand]. There a lot of resources on YouTube that can help but these are the two baseline methods that market will always revolve around.

Trading can be frustrating, especially when we’re not profitable but again this takes time. I’ve known some people that took 8 years to get it right so you are most definitely not alone. This is only my take on this subject but I hope others can also offer pieces of advice that can help you in your trading journey.

Be well and take care!

thank you so much! I appreciate your input

 

[mohaalmo]

NOT FINANCIAL ADVICE

Perhaps it would be helpful for you to spend time in paper trading while you are learning more about price action and developing a strategy that works for you. If it frustrates you to imagine not making money during the learning phase, you can consider parking your funds in something like treasuries or high-interest savings. That would allow you to earn while you learn

One of the biggest mistakes I made was trying to trade everything under the sun. When I stopped that and decided to follow just one instrument and learn it well, a lot of things started falling into place. It became easier to understand what indicators were (and weren't!) telling me. Same with recognizing patterns, anticipating measured moves, etc. For me, anyway, a lot fell into place when I watched one instrument across several timeframes instead of looking at dozens of different instruments. Of course, your learning style may be different.

Best wishes and happy trading.

thank you so much! I need to start step by step and test strategies

 

[mohaalmo]

Everyone goes through what you are experiencing. I strongly recommend:

• the Schwab free Coaching videos and live classes. https://www.youtube.com/@tradertalkswebcasts
• Another great source is ShadowTrader.net. This used be be a free source on the TOS platform, however after the acquisition by Schwab the service was dropped. I still use them, great staff. My favorite is Brad Agunas.

Keep it simple works for me. Learn to read the chart, price should be your trigger then confirm with no more than 2 indicators. Any more than two indicators you are looking at the same data through different lens.

Slow and steady my friend, may profits be with you always.

thank you so much! I will check them

 

[mohaalmo]

Trading is a very personal endeavor. So many parameters, techniques and markets to choose from. My first big frustration was figuring which instrument to trade, then comes learning all the well known strategies and basic components of the market (price action/volume etc). Then comes developing a profitable strategy that works with your schedule and personality, which can take a long time. Sprinkle in figuring out what kind of risk you feel comfortable with then of course the whole psychological aspect. It truly is a hard journey. Never feel bad about yourself and what has happened in the past regarding your trading experience, its the learning process that all traders go through.

My advice would be to get a basic understanding of price action and volume. Look into how the two relate to one another. "Volume Spread Analysis" can be very helpful. Also the Volume Profile can be interesting as well. (both of them searchable on this forum)

I'm on board with the above posters in that indicators are just telling you what your seeing through price action and volume. I do find use in indicators in that they provide a different perspective. I recommend investigating the different types of leading and lagging indicators (trend, momentum, volume etc). There is great info on this forum on creating a mix of indicators of different types that can give you a clearer view of what price is doing. Check out the "Explore" button on the top of the page.

Also I've found concentrating on very few instruments has been a big help. Its important to really watch and see how the instrument moves throughout the day. What repeatable patterns develop. What strategy works with this instrument. Is this instrument liquid enough that I can get in and out quickly and easily with minor slippage? Can I see things clearer with traditional candles or heikin ashi or Renko/Range bars? Take the time to experiment and see what makes you feel most comfortable and confident as your developing your strategy.

When you come up with what you think is a viable strategy then test it... a lot. Test it through choppy days when there's not a lot of momentum. Test it on FOMC days and through other big news. Do mock trades when the parameters of your strategy have been met and see how it pans out. Are you stopping out early all the time?... make tweaks and test it some more.

I hope this helps a bit... like I said this a tough journey and everyone's journey is different. What's great is that we have this supportive community to fall back on.

thank you so much! I appreciate your input.

 

[apdusp]

You got good advice from other people in this community which you should consider. What I can add is that indicators are just tools that you can use to help achieve your plan. Nothing more than that.

What you really need is to establish a clear rule-based plan that you would ask a dumb robot to execute for you:

• How much time are you willing to dedicate to trading.
• How long are you willing to be in the trade?
• When to trade
• What to trade
• What is the amount you are willing to risk losing, and still sleep like a baby.
• What is your expected profit within the period defined in item 2
• Plan the exit of the position for each possible outcome, based in some eventual combination of:
• Profit
• Loss
• Time
• Indicators
• Amount of coffee drunk
• Etc
• Plan for a portfolio configuration that would be responsible for generating the results you are looking for.
• Establish a journal in which you register your planning, thoughts, and facts daily. You will review at least once per week, monthly, quarterly, and yearly. That is the best way to have personal feedback on your own trading activities.

In any case, the most important focus you should have is RISK Management above all the rest, and once you have the plan established, execute it just as a dumb robot would. As someone wisely once said, there’s a time to plan (use your brain) and there’s a time to execute (just do it!), just as with Dr Jekyll and Mr Hyde split personality. NEVER forget that s..t happens with 100% probability, and you should have a plan for that too.



The first practical and most important step you need to take is EDUCATE yourself before committing real money. No exceptions here. There are tons of sources to learn from, some paid which you might consider a cheap investment and a lot of free YouTube videos as well as from other sources, including your broker’s, and last but not least, read good books on the subject of interest. Focus on quality over quantity!



The second practical step, while you are still learning is to paper trade, applying your plan rules, till you find you are satisfactory consistent in your management (I didn’t say profits). Trading with paper money trading is not the same as with real money for various reasons, execution for one though the most relevant is the lack of emotions, the human factor.



The third step is, AFTER that consistency, start with real money, in small amounts and only increase gradually as you get more confident in your trading.