Your Questions About Successful Traders Make

Donna asks…

How do I become a Trader Trainee ?

Or get an entry level job which progresses to a trader in Singapore?

1) What educational qualifications?
2) What job title to look out for?
3) What would be its job duties?

John answers:

1. High school graduate, at least two years of college
2. Trainee- Trading
3. Your job duties will be to learn everything you need to know in order to become a successful trader

Nancy asks…

How to get into day trading for a living!?

If I know absolutely nothing about the markets or day trading… How would I go about becoming a successful day trader. One who works for himself, from home. ( I have read a few books which I don’t think is enough, but lets assume I didn’t even do that.)

John answers:

To be a trader you must first learn how to invest. You must know the products and the markets in which they trade and more importantly you must know the rules that govern those products and markets. So you must know what you’re doing, why you’re doing it, and how to do it. You should start by reading “Investing for Dummies” by Eric Tyson.

Here’s a list of books you should consider, at least read half of them
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
How to Trade in Stocks, Jesse Livermore
Millionaire Traders, Lein & Schlosberg
One Up on Wall Street by Peter Lynch
Reminiscences of a Stock Operator, Edwin Lefevre
The Disciplined Trader, Mark Douglas
Trader Vic-Methods of a Wall Street Master, Victor Sperandeo
Trader Vic II-Principles of Professional Speculation, Victor Sperandeo
Trading for a Living, by Alexander Elder
Trading in the Zone, Mark Douglas

And when you think you want to trade, try some paper trading to test your skills without spending you money http://simulatorinvestopedia.com/ http://www.moneyworks4me.com/
and/or http://www.tradingsimulation.com/

Before you enter your first order you need to address four major policies and have very strong discipline to follow them
1 – You need a written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. Always use stops either to protect you on the down side or to lock in profits on the up side. Never trade on emotions, when emotions get involved walk away. Don’t try to out-smart the market, you’ll loose but if you always take what the market is willing to give you, you’ll be successful. Other words, you don’t trade against the trend since the market is always right. And NEVER trade on emotions, once you let emotions in your trades you will loose
2 – A written money management program is essential. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested. Never go into a trade without knowing when and where you are going to get out of it. Never let a loss on a trade get greater than 8%-10%, always take you loss and walk away – don’t loose more than you need to and don’t be afraid to take the loss. Remember you never can get hurt taking a profit. Never average down, but you can average up.
3 – You must have sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you can trade and/or invest. Margin can be used but only with restraints, never let the account wall below 45% equity. Unless you fully understand margins you should not use it.
4 – A full and complete understanding of the rules & regulations of the industry. If your going to play in the game be sure you know the rules of the game and always follow them.

Unless you are willing to study and follow the above you will never make it as a trader. To be successful as a trader it takes work and constant study of the markets and the products traded in those markets, there is no easy way.

William asks…

How do I become a day trader with $2k?

For someone who knows very little about the stock market how should I get started? Should I just study the terms first? Every time I try to read an article I get lost in the lingo. Is there a video for dummies? I know I can’t really be a day trader with $2,000. But how would you go about quickly building your bankroll to $25,000? I’d rather take risks than waste time waiting on modest returns. Losing $2,000 won’t kill me, but learning the market might give me a new life!

John answers:

You don’t. In order to trade you will need more than $2,000
For some one who knows little about the stock market you will never make it as a trader.
Before you start you must know what you’re doing, why you’re doing it, how to do it and the rules that govern what you’re trying to do.
If you “get lost in the lingo” you have a lot more studying to do.
I don’t know why all the unknownings have the magic number of $25,000 but you don’t need that much to trade.

To be a trader you must first learn how to invest. You must know the products and the markets in which they trade, how security transactions are cleared and more importantly you must know the rules that govern those products and markets. So you must know what you’re doing, why you’re doing it, and how to do it. You should start by reading “Investing for Dummies” by Eric Tyson.

Here’s a list of books you should consider, at least read half of them
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
How to Trade in Stocks, Jesse Livermore
Millionaire Traders, Lein & Schlosberg
One Up on Wall Street by Peter Lynch
Reminiscences of a Stock Operator, Edwin Lefevre
The Disciplined Trader, Mark Douglas
Trader Vic-Methods of a Wall Street Master, Victor Sperandeo
Trader Vic II-Principles of Professional Speculation, Victor Sperandeo
Trading for a Living, by Alexander Elder
Trading in the Zone, Mark Douglas

And when you think you want to trade, try some paper trading to test your skills without spending you money http://simulatorinvestopedia.com/ http://www.moneyworks4me.com/
and/or http://www.tradingsimulation.com/

Before you enter your first order you need to address four major policies and have very strong discipline to follow them
1 – You need a written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. Always use stops either to protect you on the down side or to lock in profits on the up side. Never trade on emotions, when emotions get involved walk away. Don’t try to out-smart the market, you’ll loose but if you always take what the market is willing to give you, you’ll be successful. Other words, you don’t trade against the trend since the market is always right. And NEVER trade on emotions, once you let emotions in your trades you will loose
2 – A written money management program is essential. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested. Never go into a trade without knowing when and where you are going to get out of it. Never let a loss on a trade get greater than 8%-10%, always take you loss and walk away – don’t loose more than you need to and don’t be afraid to take the loss. Remember you never can get hurt taking a profit. Never average down, but you can average up.
3 – You must have sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you can trade and/or invest. Margin can be used but only with restraints, never let the account wall below 45% equity. Unless you fully understand margins you should not use it.
4 – A full and complete understanding of the rules & regulations of the industry. If your going to play in the game be sure you know the rules of the game and always follow them.

Unless you are willing to study and follow the above you will never make it as a trader. To be successful as a trader it takes work and constant study of the markets and the products traded in those markets, there is no easy way.

Daniel asks…

Do experienced index and futures day traders ever lose money on trades?

I’m talking about day traders who really know what they are doing. If they do have losing trades, what are the most common reasons for this?.

John answers:

Losses are part and parcel of Day Trading. All traders must be willing to accept a losing trade.

Successful traders have no problem closing a trade for a loss. This is one of the most common reasons people fail at day trading as they can not accept taking a loss on a trade.

Instead, they hang on to it and before they know it they have a big hole in their account.

Michael asks…

What would be the 3 best (backed) forex platforms be to start trading on?

Also; Please ad tips for a starting trader. I seem to find plenty of web based platforms only to have limited tutorials or manuals backing them. I am currently running a test account with Finexo.

Help will be much appreciated.

John answers:

If you are new to forex the best web resource by far is babypips.com. They tell everything you need to know, step by step of exactly how you can become a successful trader.

No I don’t work for them but I have found the site invaluable myself with my own trading.

Check them out and you will see what I mean.

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