Wall Street - Developing Professional Traders
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    Wall Street - Developing Professional Traders

    Quote Originally Posted by ;
    You can be free. You can live and work anywhere on the planet. You can be independent from routine and not respond to anyone. This is the life of a prosperous trader. Many aspire for the but few succeed. A amateur looks at a quote screen and sees millions of dollars sparkle in front of his face. He reaches for the cash -and loses. He reaches again -and loses more. Traders lose because the game is out, or hard of ignorance, or lack of area .Many traders say they want to be powerful but keep making trades -moving for the short term thrills of gambling in the markets. People deceive themselves and play games with themselves. Lying to other people is bad enough, but lying is hopeless.
    Dr Alexander Elder, Trading For A Living

    What we need to expect to be is a Professional Trader. This thread(not me) sets out to turn as many as are prepared here from amateurs to professional traders. Learning to trade takes work, energy, time, and cash. Few individuals increase to the level of professionals that can support themselves .

    Professionals are really serious about what they're doing. They satisfy their goals outside the markets, while amateurs act them out in the marketplace.

    The Master Strategy:

    Our very own Wall Street right here on FF. Actual professional traders; people that are looked upon traders! That's the master program. I am setting out to create an elite group of traders that can actually trade professionally here on FF.

    I am not a professional trader, far from it. I am getting there, thats what I should say. We intend to create a tight knit group of traders with this aspiration and get there.

    Just like it is easier to remain sober in AA, this group will help keep in mind our emotions and subject and also help us become better traders one day at a time.

    All members (loosely using the word, not that there's anything or subscription ) will need to recognize they aren't perfect. They'll need to be prepared to keep learning (we shall all teach each other).

    The Main Goal is to have traders produce excellent track records with draw below 10% per month and earning money consistently year after year. My personal goal is 15%-30% per month (25 percent is your sweet spot)

    This can be reached by following the wisdom set from the publiion, Trading For a Living byDr Elder Alexander. The entire idea of the thread comes from the publiion. Hugely quoted.

    You'll be required to:
    Post analysis of your commerce before entry
    State your risk on the trade (No more than 3% per trade)
    State your stop loss
    State your perspective of trend direction

    To apply discipline, we'll look to subject traders that (will be decided by members):
    Have no egy
    React to prices emotionally
    Have no stops
    Use martingale platform (not permitted on ribbon )
    Trade against trend
    Permit losses operate
    Cut profits brief

    why is it that we love trading?

    Why did we become traders? Trading appears deceptively simple. It appears to offers an opportunity to make a lot of cash. Trading is a fascinating intellectual pursuit: poker, blackjack, and a crossword rolled in one. A trader keeps strange hours and puts his capital at risk. Many traders are loners who have a leap and abandon the certainty of the present.

    One prominent trading advisor wrote that the delight of trading was higher than that of sex or flying jet aircraft.

    For me, it is a passion.

    The markets are filled with rags to riches to rags stories. However, in here we want a real rags to riches story, or something close. The hallmark of a successful trader is the capacity to collect equity. This will take place automatically to people who follow the rules of the thread.

    A Good Trader

    The idea is that many years later on, all active members of the thread will be good traders. However, that is a trader?
    Good traders are generally hardworking and shrewd men. They are open to new ideas. The goal of a trader, paradoxically, is not to generate income. His goal is to exchange. If he trades right, cash follows as an afterthought. Successful traders keep honing their abilities. Attempting to achieve their personal best is much more important to them than earning money.

    The one field where grown-ups let their dre soar is trading. But an effective trader is a realist. He understands his limitations and abilities.

    A real pro devotes all his power to practicing his craft that the best he can - to not counting cash. This is our goal here on Wall Street, to bettering our craft

    We ought to concentrate on quality- on loing trades that make sense and using a cash management program that puts us in management, focusing on loing very good entry points and averting gambles. The money will follow as an afterthought. You might count it well after there is a trade over.


    We are winners to some extent. In reality, we should each get into the habit of saying it out loud, such as at AA meetings Morning. My name is, and I am a loser. I have it in me to do serious damage to my account. We ought to learn to do this every morning when we had .

    Losers buy, sell, or miss trades thanks to their own fantastic ideas. When their trades are on, they act like children that are afraid to pass a cemetery as they are afraid of ghosts or look under their bed at night.

    Many losers believe that they are successful if they could exchange a larger account. All winners receive knocked from the sport by a series of losses. There is A loser not undercapitalized - . A loser can ruin a account almost as fast as a little one. He overtrades, along with his cash direction is sloppy. He takes risks that are too big, whatever the magnitude of the account. However good his egy is, a series of poor trades is guaranteed to put him out of business.

    A loser knows why he or she loses. When he knew, he'd have done something about it and become a winner. He keeps trading at a fog-

    It hurts to see a loser at the mirror.

    A loser can't cut his losses fast. Most winners go bankrupt seeking to trade their way. Money management can prevent you. This is un okay.


    the aim of this thread would be to deal with the plogical part of gambling. Therefore, EAs aren't allowed here. Machines and systems can help but not replace humans.

    Market isn't your Mom

    The market isn't your mom. It doesnt understand you and it doesnt care that you are.

    Your trades have to be based on clearly defined rules. You need to analyse your feelings as possible trade, to make sure that your decisions are sound. In order that no string of losses can kick you from the 20, you need to structure your cash direction.

    Trading is a really difficult game. A trader who wants to be prosperous in the long run needs to be very serious about what he does. He can't manage to trade due to a plogical agenda or to be nave.

    No Betting

    The end product of a member of the thread will be a Professional trader, not a Professional Gambler.
    Gambling means gambling on games of chance or skill. The sign of gambling is the inability to resist the urge. Cease trading if you feel the results are poor and that you are trading. This will give you a chance to reevaluate your trading. If the impulse to trade is so strong that you cannot steer clear of the action for a month, and then it is time to see the regional chapter of Gamblers Anonymous or get started utilizing the principles of Alcoholics Anonymous.

    Failure is Curable

    The reason why we dont stop losing is that; it hurts to look within yourself for the reason for your failure. However, when we did, we'd understand that failure is a disorder.

    You'd understand that your failure or success depends on your ability to use your intellect instead of act out your own emotions.

    To do this, start keeping a diary-a listing of all your trades, with motives for entering and exiting them. Start looking for patterns of success and failure. People who do not learn in the past are condemned to repeat it.

    Your feelings have an immediate effect on your account equity. You compete against the sharpest minds on earth, when you exchange. Should you let the market make you feel you may lose money. The market does not know you exist. You can certainly do nothing to influence it. You can only control your behaviour. You won't ever be able to control the market but you can learn to control yourself.

    A professional trader uses his mind and remains calm. Just amateurs become excited or sad . Responses are a luxury that you could not afford in the markets.

    Trading is a heady experience and can be very addictive. You act rather than using your own intellect. What's the distinction between a trader seeking to get back in the market and a fighter kicking on a tree stump? Suffering from anger, anxiety, or elation destroys your chance of success

    Safety Net and Mentorship

    Trading is significantly much more dangerous than most human endeavours. The markets offer opportunities to self-destruct with no safety net.
    You need to know about your inclination to sabotage yourself: Stop blaming your losses on bad fortune or on others and take responsibility for those results.

    This thread will be the ultimate Security for traders here. The thread's members will watch out for each other, will probably be kind and considerate to one another and will adjust each other.

    If you see your buddy overtrading, risking too much, correct them in a kind way. If they are breaking their own rules, tell them.

    Let's mentor each other, PM each other and talk about trading matters.

    When we finally hit rock bottom, the pain seems intolerable. This pain penetrates denial. I hope this pain isnt the reason. I hope you're here because you realize the requirement to be a trader.

    1. Be on the market for a very long haul- which is, you want to be a trader even 20 years from today.
    2. Learn as much as possible. Read and listen to experts, but maintain a degree of healthy scepticism about everything. Ask questions, and do not accept experts at their word.
    3. Do not get greedy and hurry to trade - take time to understand. The markets will be there with good opportunities in the months and years ahead.
    4. Develop a way of analysing the market- . Markets have dimensions -utilize several methods to confirm transactions. Everything then and on data in the markets, using actual cash. Markets keep changing-you need different tools for trading bull and bear markets and transitional periods as well as a way of telling the difference
    5. Grow a cash management plan. Your first goal has to be your target; your goal and survival, which makes high profits. Most traders place the third target first and therefore are unaware that goals 1 and 2 exist
    6. Be aware that a trader is your weakest link in any trading platform
    7. Winners think, feel, and behave differently than losers. You strip away your illusions must look on your own, and alter your old methods of acting, thinking, and being. Change is hard, but if you want to be a professional trader, you need to work on changing your character.

    The Market

    Essential Points:
    Buying by bulls pushes markets upward, selling by bears pushes markets down, and undecided traders make everything happen faster by creating a sense of urgency in buyers and sellers.

    Prices jump when people of traders become emotional about a fashion. An trader attempts to enter the market during quiet times and take profits during wild times.

    Many traders are confounded why markets always appear to reverse immediately after they dump their losing position. Because crowd members have been gripped by the exact same everybody dumps at the exact same moment, this happens. When the fit of selling has finished, the market has nowhere to go but up.
    Optimism returns to the marketplace, and the crowd feels greedy and moves on a new buying binge.

    You need to base your transactions on a carefully prepared trading plan, not jump in reaction to price fluctuations. It is worth it to write down your plan. You need to know exactly under what conditions. Do not make decisions on the spur of the minute, once you're vulnerable to being sucked into the audience

    you need to find yourself and detect changes in your emotional state as possible trade. Write down your reasons for entering a transaction and also the rules of it. You must not alter your plan at the same time you've got an open position.

    This is a trend after thread. We feel that you should never buck the trend. We respect this crowd's potency.

    Money Management

    This will be our main objective. All traders will need to practice sound cash management egies. Here are a few tips:

    The primary objective of money management is to ensure survival. You need to prevent risks that can put you. The next goal is to earn a steady rate of recurrence, and the aim is to generate returns that are high - but survival comes first.

    Do not risk Involved entire wad is the very first rule of trading.

    An amateur trying to get rich quick is similar to a monkey out on a narrow branch. Once the branch breaks under his weight, he reaches a ripe fruit but crashes.

    Main Objective: Trade to establish the best track record, together with continuous gains and Tiny drawdowns.

    If you gamble a quarter of your account on every transaction, your ruin is ensured. You will be wiped out with a brief losing streak, which happens with trading systems that are . Even in the event that you wager a tenth of your account on a transaction, you won't survive. A professional cannot afford to lose more than a very small proportion of his equity onto a single trade

    Extensive testing has shown that the maximum amount a trader could lose on a single trade without damaging his long-term prospects is 2 percent of his equity. This limit includes slippage and commissions

    Many amateurs shake their minds whenever they hear that. Many have little accounts and the two percent rule throws a monkey wrench into the dre of profits.

    Most successful professionals, on the other hand, consider the two percent limit also large. They don't allow themselves to risk more than 1
    percent or 1.5 percent of their equity on any single transaction.

    The two percent rule places a solid floor below the amount of harm the market can do to your account. Even a series of five or six transactions that are losing won't hamper your chances. In any situation, if you're trading to produce the track record, you won't wish to show over a 6 percent or 8% monthly loss. When you hit that limit, cease trading.

    Utilize this cash management rules: Never shut; not meet a margin call; in case you must lighten up, liquidate your worst place; the very first mistake is the lowest priced.

    Protective stops

    Always put your stop the moment you enter a transaction.

    When you're long, you may maintain your stops in position or raise them but not lower them. When you're short, you lower them or may maintain your stops but not raise them. Cutting at extra slack to a trade is a loser's game. If a trade isn't working out, it demones your analysis was


    The point is trade with an edge. If you have whether fundamental or technical, then post your trades here. We won't allow exited trades. This way, you do not get to post just your own winners.

    We invite you to post all of your transactions. Dont be afraid about shedding, that's what we're attempting to get out of you.

    Write a good description of your analysis.

    A trendy, intelligent analysis does you more good than gloating about profits or wallowing in regrets.

    Start maintaining a prior and after laptop. At any time you enter a place, print out the current charts. (Article here) Glue them onto the left page of your note-book and jot down your most important reasons for buying or buying. Write down your plan for handling the transaction.

    After you exit, publish the charts again( again, here) and paste them on the right page of your laptop. Write down your reasons for list and exiting what you did right or wrong. You will have a pictorial record of your transactions and ideas.

    This laptop (the thread) can help you understand from the past and detect blind spots on your own thinking. Learn from history and profit from your own experiences.

    Please Introduce yourself in your initial post, and your goals here

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