AboutMark Hodge Expertise Questions related to technical analysis, strategies, risk, trading plans, trading psychology and money management. Experience in trading all markets and timeframes with expertise in futures (e-minis, currency futures, commodities, European Markets-DAX) and equity options. Unfortunately I am not allowed to offer any specific trading advice (i.e. should I go long the DAX today).
Experience I have been involved in the industry since 1995 working for Morgan Stanley Dean Witter and American Express Financial Advisors before becoming a full time trader. As Head Education Coach with Rockwell Trading I have coached hundreds of students around the world to achieve their trading goals with simple strategies, a sound trading plan and proper money management for the leveraged markets.
Organizations Currently serving as Rockwell Trading's Head Education Coach www.rockwelltrading.com and moderator for Rockwell's Student Trading Room where we follow opportunities in the minis, interest rates, currency and grain markets daily.
Education/Credentials Formerly licensed as a financial advisor with Series 6, 7, and 63 licenses. B.A. in Organizational Communications with a Business Minor from California State University, Sacramento.
Past/Present Clients I have worked with institutional traders, brokers, proprietary trading firms and private traders but respect their anonymity.
One of the few distinguished World Cup Advisors www.worldcupadvisors.com
My name is Curtis. I’ve recently (4/09) started day trading, almost on a lark. I’ve had some success and am motivated to learn how to do it right. It started in 2001 during the last recession. I heard a news report that Qwest (Q) had dropped to $1 per share. I thought “…what’s the chance that Qwest stock is going to go back up?...” I felt the likelihood was very high. I didn’t buy, but watched the stock. Sure enough… in just a few months, it was back up over $3 per share. I vowed when the next recession came, I would try my hand. So, when I learned that Ford was refusing federal $ and claimed to have enough cash to weather the storm, I watched it. I bought when it was @ $1.85 (mid April) and sold when it hit $5. I’ve bought others too and overall have done well (tripled my money). But now the market is struggling and so are my stocks. It’s given me pause to say to myself that I’m really just guessing and I need to learn how to do this right. My [long-winded] question is: Where can a below-average, middle-age guy go to learn how to do this? What resources can you recommend to the laymen to study to learn how-to? Thanks a lot.
Answer Hi Curtis,
Welcome to the world of day trading! It sounds like you have seen success making picks on a hunch, which could be tied to some fundamental information that you are "aware" of but not recognizing. With the switch to active trading hunches can be dangerous, and I believe that learning technical analysis is going to be the easiest way to go as a short term trader.
There are literally hundreds of trading methods and strategies, but the first step is create a trading plan and narrow things down to:
1) Market(s) you will trade
2) Timeframe you will trade
3) Methods you will use to trade
The next step is to TEST your timeframe and method on the markets you will trade. Do some backtesting, watch the markets live and LEARN from these experiences. It's tempting to want to jump right into the markets but without a solid plan that has been tested, you're swimming with the sharks and likely to get bit.
I'd recommend that you begin by reading The Complete Guide to Day Trading by Markus Heitkoetter. This is a GREAT start and fortunately for you, you can download a free version here:
If you'd prefer to buy a physical copy, you can get one on Amazon.com
We've actually recently introduced a Home Study Course too that covers chart patterns, setups, indicators, a day trading strategy, trading psychology and the components to a trading plan and how to approach the trading day. The Home Study Course is so new it isn't even being offered on our website (yet). Although I'm obviously biased, it sounds like it is a GREAT option for you(very reasonably priced), and a one stop shop to help you build the foundation you need as a day trader.
Feel free to start with the free e-book, but if you're interested email Mandy at support@rockwelltrading.com and ask her about the Study Course. There are SO many directions to go as a trader (way beyond the scope of this post) and we get the same question you presented daily. This is exactly why we created the course. If you're not quite ready for the course, you can sign-up for our recorded webinars for free by going to http://www.rockwelltrading.com/rockwell-webinars
Good luck with your trading endeavors! If you have any specific questions, let me know.
Mark
