First step first | stockbee


First step first

If you are new to this site or trading start by setting up one method first. Become good at it.
Even before you start on one method, first get the basic tools in place. You need scanning software, broker, right amount of capital , right kind of process to be in control of your trading.
If you are going to be doing basic scans like 4% , $ breakout, Low Threshold breakout, Anticipation , TI65, MDT, DT then you need a software capable of doing it.
I use Telecahrt for my scans, but there are many other options in the market. Whichever software you select you should understand it and be able to run and write scans on it yourself. If you can not do that you will struggle . You can not all the time depend on others to create scans for you.
If you are going to trade stocks based on fundamentals, then you need software or databases that will allow you to find accurate and timely fundamental information. I use Marketsmith for finding growth stocks. Again once you have software like say Marketsmith you need to understand how to scan for the kind of stocks you are looking for.
Brokers is next step to think about. Active traders use certain brokers for a reason. Most of the brokers used by active traders have interfaces which allow you to trade fast. I use multiple brokers currently ( Interactive Brokers, Fidelity, TD Ameritrade, Merrill Lynch). If you are going to do lot of shorting you need broker who can find shorts for you.
Once you have good broker you need to understand different types of orders and how to use them effectively. For Anticipation method you need to understand how to use Buy Stop Limit orders. You need to understand how to create stop orders and move them.
Next important decisions you need to think about is margin and how much you are going to use it. I use portfolio margin , that gives me significantly higher buying power. But there is risk associated with using portfolio margin and one needs to be ware of that.
Once you have tools in place you need to work on streamlined process flow. Each of the setup I trade I have developed a very efficient process flow and day in and day out , i follow that. Unless you have a process flow and you work on it to streamline it , you will find trading difficult.
If you work on all these basic things first then you will find it easier to add more setups to your trading mix.
If you want to make millions trading work on these basic things first.

No comments: