Post by Admin on Jan 29, 2024 16:42:30 GMT -5
I started my generic trading system around 2000. See (fd1000.freeforums.net/thread/2/trading-generic-ideas).
But after 2012, I became a lot better...keep reading.
While working at my last company before I retired, I noticed that one of my co-workers trades a few times per day. She told me she has been doing well trading futures. I didn't believe her, but, she let me watch her making real-time trades, and most were good. She helped me contact the guy (let's call him the trader) who invented it and for $500 I got his articles + the software criteria. I had to open an account for future trading and install his software criteria. The min to open an account with that stand-alone company, and no connection to the trader, was $500.
The trader emailed me several fascinating articles. About half were about emotions and the psychology of trading. The other ones easily explained his system and how to implement his rules. The software T/A (tech analysis) criteria follow these rules when you trade.
In the next several weeks I had to use the software but only write my trades on paper and email the trader my actions until he thought I was ready.
The next step was to trade small amounts of $100 each time. The trader had 3 days a week an hour session with all of his traders and what we should have done.
Most didn't do well. The trader was a Russian guy with degrees in finance and psychology. He was abusive, sarcastic, and funny. Most were afraid of him but not me, after all, I know, lived and worked with many Russian immigrants in the country I came from.
A common response by the trader was.."you guys are so bad, I told my 9-year-old daughter what to do and she thinks it's a game and making so much money, be ashamed of yourself". Remember, all the sessions were around 11:30 AM about 90 minutes after the allowed time to trade, more details later.
My success was dismal. I was disappointed and agreed and lost $500. I started to call the trader directly and we had tough discussions he told me it was my fault.
One day, in one of these sessions, I challenged the trader to actually make live traders instead of his usual BS telling us what to do after the fact. He was angry, he called me later and refunded the $500 and asked me to never call him again.
Based on what I saw I developed my criteria, after all, anybody can change these T/A. tech analysis rules but that didn't work either and I lost another $500. The total loss was $1000.
I learned a lot from this guy and that brought me to my current system with a huge success.
What have I learned from the trader:
1) Trading is a lot more about emotions than anything else
2) He allows you to trade only once between 9:40 to 10:05. The market is volatile in the first 10 minutes, stay away. You are supposed to get out of the software until the next day. The idea is not to be hooked. Only if you have very high success rates you can trade twice.
3) You want to have a small gain using momentum and get out before it changes, never be greedy, small amounts = confidence.
4) If you want to make more, add more money, and never stay in the trade too long, again it's easier to make small gains and make more money by investing more.
5) Only trade wide range indexes with lots of liquidity which were E-MINI for SP500, QQQ, Russell 2000(SC). I tried all 3, but only the Russell 2000 was slow enough to make any money.
6) While trading, the software can show you how much money and the % you have in the trade and how much you making or losing. The trader forbids you to look at the amount of money only at the %. This tricks your brain and curbs your emotions.
7) The trader had too many rules, about 6-8, and you had to follow 3 screens for different periods (seconds, minutes, and hours). You had to follow the generic LT momo-uptrend, look at the mid-term uptrend, and trade based on the second chart. My brain could not function fast enough. My younger co-worker did much better.
8) The trader claimed that women are much better traders because they follow the system rules, take lower risks, and don't show off.
The above influenced and changed my generic system. I started to trade only 2-3 funds, instead of 5. After a few years, I could see, that bond OEFs trades had a lot more success. I learned to follow uptrends and take small gains in % but each trade was worth a lot of money when I invested a lot of money. I set up max losses which kept me from losing more than 3% in bond OEFs, in reality, I lost less than 1% because I got better.
That $1000 was a great lesson for how to improve and get better. I ditched the above daily future trading and never looked back.
But after 2012, I became a lot better...keep reading.
While working at my last company before I retired, I noticed that one of my co-workers trades a few times per day. She told me she has been doing well trading futures. I didn't believe her, but, she let me watch her making real-time trades, and most were good. She helped me contact the guy (let's call him the trader) who invented it and for $500 I got his articles + the software criteria. I had to open an account for future trading and install his software criteria. The min to open an account with that stand-alone company, and no connection to the trader, was $500.
The trader emailed me several fascinating articles. About half were about emotions and the psychology of trading. The other ones easily explained his system and how to implement his rules. The software T/A (tech analysis) criteria follow these rules when you trade.
In the next several weeks I had to use the software but only write my trades on paper and email the trader my actions until he thought I was ready.
The next step was to trade small amounts of $100 each time. The trader had 3 days a week an hour session with all of his traders and what we should have done.
Most didn't do well. The trader was a Russian guy with degrees in finance and psychology. He was abusive, sarcastic, and funny. Most were afraid of him but not me, after all, I know, lived and worked with many Russian immigrants in the country I came from.
A common response by the trader was.."you guys are so bad, I told my 9-year-old daughter what to do and she thinks it's a game and making so much money, be ashamed of yourself". Remember, all the sessions were around 11:30 AM about 90 minutes after the allowed time to trade, more details later.
My success was dismal. I was disappointed and agreed and lost $500. I started to call the trader directly and we had tough discussions he told me it was my fault.
One day, in one of these sessions, I challenged the trader to actually make live traders instead of his usual BS telling us what to do after the fact. He was angry, he called me later and refunded the $500 and asked me to never call him again.
Based on what I saw I developed my criteria, after all, anybody can change these T/A. tech analysis rules but that didn't work either and I lost another $500. The total loss was $1000.
I learned a lot from this guy and that brought me to my current system with a huge success.
What have I learned from the trader:
1) Trading is a lot more about emotions than anything else
2) He allows you to trade only once between 9:40 to 10:05. The market is volatile in the first 10 minutes, stay away. You are supposed to get out of the software until the next day. The idea is not to be hooked. Only if you have very high success rates you can trade twice.
3) You want to have a small gain using momentum and get out before it changes, never be greedy, small amounts = confidence.
4) If you want to make more, add more money, and never stay in the trade too long, again it's easier to make small gains and make more money by investing more.
5) Only trade wide range indexes with lots of liquidity which were E-MINI for SP500, QQQ, Russell 2000(SC). I tried all 3, but only the Russell 2000 was slow enough to make any money.
6) While trading, the software can show you how much money and the % you have in the trade and how much you making or losing. The trader forbids you to look at the amount of money only at the %. This tricks your brain and curbs your emotions.
7) The trader had too many rules, about 6-8, and you had to follow 3 screens for different periods (seconds, minutes, and hours). You had to follow the generic LT momo-uptrend, look at the mid-term uptrend, and trade based on the second chart. My brain could not function fast enough. My younger co-worker did much better.
8) The trader claimed that women are much better traders because they follow the system rules, take lower risks, and don't show off.
The above influenced and changed my generic system. I started to trade only 2-3 funds, instead of 5. After a few years, I could see, that bond OEFs trades had a lot more success. I learned to follow uptrends and take small gains in % but each trade was worth a lot of money when I invested a lot of money. I set up max losses which kept me from losing more than 3% in bond OEFs, in reality, I lost less than 1% because I got better.
That $1000 was a great lesson for how to improve and get better. I ditched the above daily future trading and never looked back.