Comments on: 3. Market Selection http://www.freetradingsystems.org Design your own profitable trading system. Mon, 02 Jan 2012 11:45:43 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Vinoth http://www.freetradingsystems.org/3-market-selection/comment-page-1/#comment-10210 Vinoth Fri, 30 Sep 2011 17:01:38 +0000 http://www.freetradingsystems.org/blog/?page_id=27#comment-10210 Thanks David, This really helps us a lot. As a newbie i feel it is really tough for us to give the realistic numbers(point 4. Same for goal setting) here. I gave my answers for others. From your experience can you answer for point. This helps me to set my goal as well.(Previous chapter) 1.How much time do you have to spend trading?2 - 3 hours daily 2.How much capital do you have to work with? 3000 US dollars(1 Lakh INR) 3.How much risk are you comfortable with? 30% 4.What annual rate of return do you want? 5.How do you want to take your money from the market? Are you looking for cash flow (consistently taking profits out of the market) or capital growth (looking to grow your capital in the market over time, using the magic of compounding)? capital growth Thanks David,

This really helps us a lot.

As a newbie i feel it is really tough for us to give the realistic numbers(point 4. Same for goal setting) here. I gave my answers for others. From your experience can you answer for point. This helps me to set my goal as well.(Previous chapter)

1.How much time do you have to spend trading?2 – 3 hours daily
2.How much capital do you have to work with? 3000 US dollars(1 Lakh INR)
3.How much risk are you comfortable with? 30%
4.What annual rate of return do you want?
5.How do you want to take your money from the market? Are you looking for cash flow (consistently taking profits out of the market) or capital growth (looking to grow your capital in the market over time, using the magic of compounding)? capital growth

]]> By: NANCY http://www.freetradingsystems.org/3-market-selection/comment-page-1/#comment-7582 NANCY Tue, 31 May 2011 05:18:29 +0000 http://www.freetradingsystems.org/blog/?page_id=27#comment-7582 Hi David very interesting thank you for sharing it for free I appreciate it. Let me tell you my situation first, I am looking desperate for ABC information about how to start trading, I realized this will be a good business for me since I failed in my own business few months ago and I never worked for somebody else and I need to get in the track again and pay all my debt. Now I have been reading books to get started, by the way I live in Canada, I have been jumping from one information to another and I am very confused, the only thing that I am sure about is that I want to trade for an income at least for now because I am not working, but I just read that it will require more experience (which is not my case). I want to know how much do I need to get started, what I have to focus on in order to have a decent income, I want to become a master and I want to know how long I will need to to learn it before I start trading. Thank you in advance. Hi David very interesting thank you for sharing it for free I appreciate it.

Let me tell you my situation first, I am looking desperate for ABC information about how to start trading, I realized this will be a good business for me since I failed in my own business few months ago and I never worked for somebody else and I need to get in the track again and pay all my debt.

Now I have been reading books to get started, by the way I live in Canada, I have been jumping from one information to another and I am very confused, the only thing that I am sure about is that I want to trade for an income at least for now because I am not working, but I just read that it will require more experience (which is not my case).

I want to know how much do I need to get started, what I have to focus on in order to have a decent income, I want to become a master and I want to know how long I will need to to learn it before I start trading.

Thank you in advance.

]]> By: Fred http://www.freetradingsystems.org/3-market-selection/comment-page-1/#comment-7172 Fred Sat, 30 Apr 2011 20:59:40 +0000 http://www.freetradingsystems.org/blog/?page_id=27#comment-7172 I spoke on another page about my experience with Van Tharp's Home Study course. The course said the same thing about designing a course to fit one's personality. Ofcourse, if one wants help with that process, Van will sell yet another course on How to design a system that fits you!!! So, I have been going it alone and find it is VERY difficult to come up with a system which has a Long Term positive expectancy which I can trust. One of the greatest problems I have is sticking with something that works versus being open-minded about "improving" a system. If one must have discipline to follow rules, how does one deal with the possibility that the rules might need changing? I spoke on another page about my experience with Van Tharp’s Home Study course. The course said the same thing about designing a course to fit one’s personality. Ofcourse, if one wants help with that process, Van will sell yet another course on How to design a system that fits you!!!

So, I have been going it alone and find it is VERY difficult to come up with a system which has a Long Term positive expectancy which I can trust. One of the greatest problems I have is sticking with something that works versus being open-minded about “improving” a system. If one must have discipline to follow rules, how does one deal with the possibility that the rules might need changing?

]]> By: David Jenyns http://www.freetradingsystems.org/3-market-selection/comment-page-1/#comment-6094 David Jenyns Mon, 14 Mar 2011 04:37:44 +0000 http://www.freetradingsystems.org/blog/?page_id=27#comment-6094 Hey Andrea, Thanks for your honest, open comment. You situation is not unusual... in fact, most traders go through the same process as they're developing a trading system. Have you developed your trading plan yet? One of the first steps is to pick one market and find a style that suits you. Sadly, there's really not shortcut... stick with it, you're on the right track and the rewards are worth it. Your Trading Coach, Dave Hey Andrea,

Thanks for your honest, open comment. You situation is not unusual… in fact, most traders go through the same process as they’re developing a trading system.

Have you developed your trading plan yet? One of the first steps is to pick one market and find a style that suits you.

Sadly, there’s really not shortcut… stick with it, you’re on the right track and the rewards are worth it.

Your Trading Coach,
Dave

]]> By: Andrea http://www.freetradingsystems.org/3-market-selection/comment-page-1/#comment-6009 Andrea Tue, 08 Mar 2011 21:14:01 +0000 http://www.freetradingsystems.org/blog/?page_id=27#comment-6009 Hi David, I am a "quiet" trader, and I have already found that, given my limited risk tolerance, a good instrument to work with are ETFs. The problem is that there are so many markets to choose within, with ETFs... I started with gold, then jumped to stocks and inflation linked bonds, trying to follow some principles of intermarket analysis. I only lost few hundreds of Euros (I decide my stops and sizing to lose at maximum 150-200 Euros per trade), but I must recognize that I didn't really master any market. So, my first decision is to select only one market (may be a bond or stock market) which gave robust results with my simple trend following system; then go with it. Another problem that I found is that, even if at very beginning I thought that long-term trading was suitable for me, I understood that my risk tolerance wasn't enough strong to resist to short term losses. So, effectively, my trading is now a short term one. Finally, I have troubles with waiting for confirmation of a signal to increment my winning trades percentage, but this is another story of "not enough patience". To summarize, my impression is that I am too much wandering among markets and styles, and that I should learn to be more consistent. What do you think? Thank you. Hi David,
I am a “quiet” trader, and I have already found that, given my limited risk tolerance, a good instrument to work with are ETFs. The problem is that there are so many markets to choose within, with ETFs… I started with gold, then jumped to stocks and inflation linked bonds, trying to follow some principles of intermarket analysis. I only lost few hundreds of Euros (I decide my stops and sizing to lose at maximum 150-200 Euros per trade), but I must recognize that I didn’t really master any market. So, my first decision is to select only one market (may be a bond or stock market) which gave robust results with my simple trend following system; then go with it. Another problem that I found is that, even if at very beginning I thought that long-term trading was suitable for me, I understood that my risk tolerance wasn’t enough strong to resist to short term losses. So, effectively, my trading is now a short term one. Finally, I have troubles with waiting for confirmation of a signal to increment my winning trades percentage, but this is another story of “not enough patience”. To summarize, my impression is that I am too much wandering among markets and styles, and that I should learn to be more consistent. What do you think? Thank you.

]]> By: Dean http://www.freetradingsystems.org/3-market-selection/comment-page-1/#comment-4932 Dean Thu, 16 Dec 2010 08:21:34 +0000 http://www.freetradingsystems.org/blog/?page_id=27#comment-4932 Hi David, I think an important aspect that needs to be addressed is currency exchange rates even if someone only trades stocks/options/futures or CFD\'s in other markets other than their native and doesn\'t trade forex at all I made a profitable trade on commodities index once only to see it be a loss once it was converted back into Aussie dollars. I even question Jim Rogers on CNBC asking how he manages the currency fluctuations because all his commodity investments are in US dollars. Unfortunately his answer was disappointing however I understood his outlook is far far longer term than most of us,,and he no doubt manages it through hedging etc But my point is, if one is going to buy US assets, such as US stocks and they appreciate by say 20%, yet the AUD/USD rate was to appreciate by the same amount over the same time, you\'ll make nothing, except for your broker! Cheers Dean Hi David,
I think an important aspect that needs to be addressed is currency exchange rates even if someone only trades stocks/options/futures or CFD\’s in other markets other than their native and doesn\’t trade forex at all

I made a profitable trade on commodities index once only to see it be a loss once it was converted back into Aussie dollars. I even question Jim Rogers on CNBC asking how he manages the currency fluctuations because all his commodity investments are in US dollars. Unfortunately his answer was disappointing however I understood his outlook is far far longer term than most of us,,and he no doubt manages it through hedging etc

But my point is, if one is going to buy US assets, such as US stocks and they appreciate by say 20%, yet the AUD/USD rate was to appreciate by the same amount over the same time, you\’ll make nothing, except for your broker!

Cheers
Dean

]]> By: David Jenyns http://www.freetradingsystems.org/3-market-selection/comment-page-1/#comment-4668 David Jenyns Mon, 22 Nov 2010 05:20:48 +0000 http://www.freetradingsystems.org/blog/?page_id=27#comment-4668 Hey Gustav, Check out Chapter #5 http://www.freetradingsystems.org/5-perfect-entry/ That should be what you're after. Your Trading Coach, Dave Hey Gustav,

Check out Chapter #5

http://www.freetradingsystems.org/5-perfect-entry/

That should be what you’re after.

Your Trading Coach,
Dave

]]> By: Gustav http://www.freetradingsystems.org/3-market-selection/comment-page-1/#comment-4663 Gustav Sun, 21 Nov 2010 19:24:09 +0000 http://www.freetradingsystems.org/blog/?page_id=27#comment-4663 Which system do you recommend.Please I am interested Which system do you recommend.Please I am interested

]]> By: David Jenyns http://www.freetradingsystems.org/3-market-selection/comment-page-1/#comment-4373 David Jenyns Sun, 17 Oct 2010 22:12:44 +0000 http://www.freetradingsystems.org/blog/?page_id=27#comment-4373 Hi Myles, Please note all CFD's by nature are market makers. If a provider is creating the market, they are market makers. In answer to your question, perhaps you can just ask them... are they creating the market or do they simply give access to the market. Hope that helps, your trading coach, David Jenyns Hi Myles,

Please note all CFD’s by nature are market makers. If a provider is creating the market, they are market makers. In answer to your question, perhaps you can just ask them… are they creating the market or do they simply give access to the market.

Hope that helps, your trading coach,

David Jenyns

]]> By: Myles http://www.freetradingsystems.org/3-market-selection/comment-page-1/#comment-4200 Myles Sun, 03 Oct 2010 20:16:22 +0000 http://www.freetradingsystems.org/blog/?page_id=27#comment-4200 Hi David, I am looking at setting up another cheaper trading account that is of lower cost to my bank based online trading account. I am trying to stay away from the market makers and go for direct to market. I plan to use CFD's for shorts and stocks for long. My questions is- How do I know that the provider I go with will be a true direct market access and not a market maker. Hi David, I am looking at setting up another cheaper trading account that is of lower cost to my bank based online trading account. I am trying to stay away from the market makers and go for direct to market. I plan to use CFD’s for shorts and stocks for long. My questions is- How do I know that the provider I go with will be a true direct market access and not a market maker.

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