I am a database programmer / data analyst with a business degree and a grad dip in Internet systems development.
I have worked in many dot com’s over the last 10 years. During the second half of my IT career I worked in application support at a sports betting exchange and in Business Intelligence and Datawarehousing at a leading online poker site.
I became interested in day trading a few years ago. I am learning to trade the financial markets, primarily using Market Profile on the S&P500 stock index. This blog is going to function as a kind of journal of what I have been learning. I will keep track of the interesting information I have come across in a way that is easy to access and easy to share.
A bit more background: I left a stressful job in August 2010 and had some more time to examine the movement in currencies and commodities on a full time daily basis. I worked again for a number of months but was more interested in the stock market than my dull IT job. I found myself at the end of a contract during summer 2011 and began doing this on a full time daily basis since June 2011.
Working at a leading poker firm I met a lot of talented people and some of the best poker players there are. People were betting on all sorts of things and always talking about edges like poker tracker, percentage plays, variance, value bets. We played poker with former World Series of Poker winners. I learned the importance of bankroll management and tight aggressive play. If there were some initial similarities to look out for they would be as follows: you do not sit down at a 50 dollar sit n go (as some people do) without having played a few hundred hands at the play money and a few thousand hands at the 5 dollar table. In a multi table tournament you begin by playing only top hands from good table position. You limit your risk and maximise your reward. You build a bigger stack and can afford a bit more leeway and can bully and dominiate other players. You do not get carried away after a big win or freeze into a bad hand.
Texas hold’em starting hand guide:
Update Feb 2015: I spent some of the last two years trading. I had 2 days a week for around a year during 2013/2014. It was much better having an income but the pressure to make money was still there.
In this time I have had to work very hard on discipline: this means being awake and ready for when the markets are going to present opportunity, to take breaks, to identify edges and to execute upon them.
The most important thing is having a plan. Without that you have no business trading. This takes time in the evenings and the weekends. I carried out database studies and many of these are on this blog or on twitter.
I have refined my approach and it doesn’t change much now, it comes from looking at Monthly,Weekly,Daily Range+Volume, Daily Delta cycles (accumulation /distribution). Large Block Delta, MOC delta direction, EOD delta #. Volume+ATR (for Range expansion), COT data (very underrated but worth reading the 2 main books about).
The reasons I share this stuff are for my own reference as a journal. I learned some of the best things I know for free so I want to pass that forward in the spirit in which it was given. I am happy to let people know my approach and understand what I think you need to know to make money from trading. Trading is not a get rick quick type of thing. It involves hard work, long long days, losing more than you are used to when starting out, losing all the time and knowing when you accept it you have made progress. You will learn about fear, greed, frustration and you will doubt yourself many times. You will undergo a lot of introspection about why you react the way you do. You adapt because you must go on.
You ultimately need to do it for long enough that you don’t get excited by small wins and don’t get phased by small losses, all the while building your understanding of the market phases. You need to identify and execute on the setups you identify that work. You need to increase risk tolerance and do all of this without destroying other things in your life. You have to read about a lot of things if you are going to have a go at doing it yourself. Above all you have to love it, you have to be good at it in some form. If you persevere you must be willing to adapt. You need an analytical but creative mindset, being able to program in some way is also useful. There are many ways to trade but some are more suitable for some people.
Note: I don’t get revenue from the advertising. It is there to make my wordpress free.
Please read https://atoast2trading.wordpress.com/twitter/.
Updated Dec 2015.
I am in university for two evenings a week studying statistics.