How to Begin with Investing and Trading (Series): A Traders History

[LoveTehSun]

I thought he was going to say, "And, Larry set my head on fire."

[BruceybadUS]

For equity trading, this has been the most valuable book I’ve read.

[indicatorguys]

We have a great system to help people trade from home...

[VitalitySole]

Hot Commodities by Jim Rogers - for anyone searching for it

[HorseWaterDrink]

roofing is hard work , trading is difficult work

[Luiyi385]

Yes, that was the very first book I read a long time ago !

[Luiyi385]

@Luiyi385 The Ken Roberts one I mean.

[jessica5666]

Hey Dan. I have a question. Let's say I want to buy index funds, like Dow Jones, S&P 500. Where do I buy it online?

[AirelonTrading]

@jessica5666 Heyya Jessica ... different brokers allow you to purchase ETF's such as the SPY or the QQQQ or the DIA are the major US Indices ...

[CrookedJudges]

THE INTELLIGENT INVESTOR by Ben Graham

This was the book that Warren Buffett said changed his life.

[freeSCALPINGindicato]

i love ur trading vids, cheers

[gmosphere]

this is also what happens in vegas why isn't there a stock exchange in vegas the,come the trading floor would have an open bar and the atmosphere would be the same. lvse

[AirelonTrading]

@gmosphere Except the only wealth generation is for the owners of the casino. At the market, I can be the casino.

[eslake]

Suggesting New traders wait for months while researching.. without "getting their feet wet" is less realistic than expecting a $5k return on a 900pt investment.

But with $10 / $25 open Forex accounts, they can have both. There is no greater motivation to Learn Everything and Learn Fast than to see a $10 balance drop to $4 in a day, and thinking "If that had been $10k...."

[AirelonTrading]

@eslake Then all they think is ... "Well, it was only $6, that's all, I'm not that bad". It's an entire thought process that needs to change that I mention in my "Psychology and Emotional Discipline" playlist. It's not only about losing money. I know traders that have been in the game for 15 years, and lost well over $150,000. They still make the same mistakes over and over and over again.

[AirelonTrading]

@eslake I know traders that DID go through the process, the research for months on end. They now have their own $9 million hedge funds and are growing within just a few years and are doing well.. The time spent in research is well, well, well worth it.

[AirelonTrading]

@eslake If people refuse to listen to the precepts in these various playlists? Then I will be more than glad to continue taking money out of their account.

[eslake]

@AirelonTrading

As you point out tho, people will find their level of success or failure - contingent on their willingness to adhere to the disciplines needed to maintain a level of competence.

So, IMO, someone who throws away $10 to learn they simply don't have the discipline to succeede will be better off than someone who spends months in advance, then (knowing what they need to know) dropping a Real quantity of moneys into a failure for the same reasons. ;)

[82snowball]

invest don't trade

[AirelonTrading]

@82snowball I hear the same thing from traders. There is a big thing of "trade don't invest". I do both, which gives me a rather balanced approach. Last year (2009), my trading efforts were about 42.5% for the year, and my investing efforts were about 43%. This year, doing even better. Some years, I do worse.

I have a motto I've told subscribers for years. "There are good traders, and bad traders. There are good investors and bad investors"

[82snowball]

@AirelonTrading I have averaged just over 20% for the past 14years, Not trading just taking an investment approach. I do sell if the stock increases to more than what it's fair value would be in 2 years, But generally I just spend my time finding quality companies with good return on equity and buy them when thier at less than their fair value and hold them for as long as they continue producing profits, I only sell if they become over valued and I have a better opportunity to deploy capital.

[TheTheonenonly14]

The investments people make are confused by the finical difficult they are facing by living standards and money management people with skill will understand it but not me do you know why?

[ZerroRozario]

How to lose all money)))

[forexyard]

A thorough run through of the technical analysis needed to succeed in the forex market.

[AirelonTrading]

@forexyard Technical analysis is only about 10% of what it takes to be profitable in trading. In 14 years of doing this, I have never ... ever ... met a trader who is profitable using technical analysis alone. I use it. But as I said, for about 10% of my total work ...

[forexyard]

@AirelonTrading The fundamentals can't be ignored, but 10% seems a little light. Take for instance today, the stress tests can't be ignored and will be driving trading today.

[AirelonTrading]

@forexyard Basically, technical analysis can be taught in a day. Mabye two. As Don Miller has said, it's like learning poker. You can learn the hands, and what beats what and the basic rules in about a day.

Never met someone who learned the rules of poker in a day, and then could play with professionals ...

[forexyard]

@AirelonTrading Anyone can identify a trend line or a head and shoulders pattern. A day to learn, a lifetime to master

[AirelonTrading]

@forexyard Well ... I'm not sure about a lifetime. It gets to a point where trading can become pretty boring, once mastered. I'd say with a good coach or mentor, maybe 4 years.

[forexyard]

@AirelonTrading This may be the first time that I've heard someone call trading boring. I think you've set a precident!

[AirelonTrading]

@forexyard Hehehe ... a lot of professionals like myself feel that way though. Matt "Miss Trade" Davio interviewed me some time ago, and we went over that very topic. After a while, it's just the same thing over, and over and over again.

[Hot4Chess]

Who ultimately pays for interest Federal Reserve pays to banks to keep money idle ?

Fed is concerned about deflation but why they encourage money to just sit their idly. Does not that discourage investment ?

And where Fed gets money to pay such enormous interest on trillions of dollars just sitting there?

[sybrentc]

@Hot4Chess The savings are used by the bank for giving out loans. The interest rate on savings comes from the loan interest rate.

[TheSilverWatch]

In Monty Python's *Holy Grail* it is said that *Camelot is a Silly place*,...I think the Stock Market is a *Silly Place*,....been there done that. Cheers

[TheSilverWatch]

Buy Physical Gold and Silver Bullion !....run away from the Stock Market!

[AirelonTrading]

@TheSilverWatch I own gold and silver bullion.

But to say ... "Run away from the stock market" is silly. Just silly. Especially when long term buy and hold investors can make money when the stock market falls.

[Hot4Chess]

Greenspan wrote in an opinion piece posted on the Wall Street Journal’s website. “Long-term rate increases can emerge with unexpected suddenness,” such as the 4 percentage point surge over four months in 1979-80, he said.

[AirelonTrading]

@Hot4Chess Just my personal opinion, but Greenspan quotes are to be taken with a grain of salt. The guy publicly admitted to trying to obfuscate his speech in public statements ( watch?v=9JHctWztRww )

It can, and will happen at some point. But the question when it comes to any moves in the capital markets - is "when" - the timing. If you shorted the Q's in 1999, you went to the poor house. If you shorted the Q's in 2001, you were an instant millionare. Same trade, different timing. :^)

[Hot4Chess]

@AirelonTrading

fascinating video

what is he trying to achieve though by fear mongering into more trouble . Seems like those comments capable to cause more trouble . what is his interest ?

[Hot4Chess]

any clue when will long term interest rates rise in US ?

[AirelonTrading]

@Hot4Chess Good question. It's a trade that "looks obvious", but I've been watching traders get their faces ripped off trying to implement it.

We're actually about to enter a very bullish (cheaper rates) seasonal time for interest rates too (July through August / September)

[Hot4Chess]

You sound like a smart guy and know what you are talking about . I tied to get an answer from so many blogs and Internet sites like money talk yahoo answers and many others

They remove my question without explanation

Can you tell me why they are so scared of it ? Considering my question is very simple and non discriminative

well here it goes : what would happen to value of stocks in case of country's default

is that scary question ?

[AirelonTrading]

@Hot4Chess No, not really. Depends on the stock, which exchange it's listen on, what it's base currency is. With other countries in default and the current US Dollar carry trade still on ... there might be some short term scary in U.S. equities before the carry trade pushes the U.S. stocks higher. Especially if that countries bond market plummets (Interest rates skyrocket) and there is a cold move to that countries currency in order to earn a yield

[Hot4Chess]

@AirelonTrading

well that was not that scary , was it . LOL yahoo answers and money talk removed it again

they are either dumb or fearful , probably both

it is hilarious

[Eshareholder1]

Nice job Dan, keep 'em coming! We're opening a new financial community at E-Share Holder this week, please come check it out!

[moniequa]

how to invest successfully: don't start and use your money for something else home and gold and other tangible assets.

[TheSophist2007]

day traders r nuts, how can you predict anything....

[AirelonTrading]

@TheSophist2007 Who says I predict anything? Predicting is for newbies. I'm known for saying when I'm asked where the market is going: "I don't know, and I don't care"

Only newbs think you have to 'predict' the market.

[galendracos]

Hey Dan, it's good to hear the war stories man...good judgement comes from experience....and experience comes from bad judgement, lol. Some brokers offer the ability to make mock trades with play money...do you think there is any value in that?

[AirelonTrading]

Absolutely. In fact, I think I have a video on that later on in this series, regarding "paper trading" or "demo trading". I think ThinkorSwim has the best platform for demo-trading ... at least of the platforms I've seen.

[dalesalsa]

No beautiful women....?  :-(

[dalesalsa]

@dalesalsa

Holly crap Dan! 15 thousand ! on Books! 

Wow... I thought I was crazy pushing close to $1000! Damn...

I decided early on that the ones that were going to be any useful at all were the ones that did not have hype and/or came from Dr. Van K. Tharp. Then I also got myself a mentor and he me very much!

Adios!

[AirelonTrading]

@dalesalsa I was determined!! :)

[TheSophist2007]

@AirelonTrading if your not predicting what are you doing? you cannot know everything , so you must be making some kind of probablilistic gamble or hunch on what is happening in a market in order to make a position in the market?

you must be makeing a future prediction that the price is going to go up, or likely to go up on some premise.

isn't that the whole point of investing

[AirelonTrading]

@TheSophist2007 No ... it's not.

It's reacting to the current market pressures, and seeing where the market has already begun to lean, before the actual move occurs. You have pressures that begin to build in a market, before it makes it's move. Pressures such as accumulation in buying pressure. Distribution in selling pressure. Seasonality pressure. All of these forces build and lean into the market before the market makes its moves

Professional traders react. They don't predict.

[000password000]

he looks like a retard.

[soVun]

guaranteed he is a richer retard than you're a poor retard.

[AirelonTrading]

Do this.

Google "airelon economic spin network" and listen to the podcast.

If after listening to that podcast you can even begin to keep up and even understand what I'm talking about? If by "retard" - you mean an IQ of 173? Then yes, I guess you're right and I'm a retard.

Then, if you want to possibly begin to understand how to make money, you can write me, address me as either "Sir" or "Mr. Shy", and then, perhaps, I would consider unblocking you kid.

[Raybanmonster]

My mentors

Larry Williams

Victor Sporandeo

Oscar Carboni

Linda Rashke

Once you get this trading bug it grips you with all your heart and soul, cant wait to go in full time now, should be next couple of months as my IT Entrpreneurship winds down to make way for a new life. Good luck people You cannot come into trading half heartedly coz you need balls of steel to carry you through the losing streak

[AirelonTrading]

Great way to put it .... and very true

[dalesalsa]

@AirelonTrading

Dan,

I think I heard you say in one of your vids that there is a way for someone to "AUDIT" your trading account like if they don't believe you are making money trading.

Some of my family and friends just find it hard to believe that someone can make money trading so I was thinking if there is a company or group of accountants that can do 3rd party independent review/audit of the trading activity so that they believe. Is there something like that or am I smoking crack?! lol

[AirelonTrading]

No, you're not smoking crack at all. Absolutely there is. Any CPA should offer services to have your accounts audited.

[dalesalsa]

Thanks Airelon

Peace

[Raybanmonster]

Great vid.

Im into trading for three years. ONLY NOW do I believe after losing all that time several tens of thousands of pounds do I now believe Im just about able to stick to my plan and stop over trading. Its such a difficult thing to do. the battle is with yourself let lose in a huge playground & without doubt EVERYONE losses money. The typical cost is about 20-60K cost. Larry Williams strategy is perfect for me! hes the one I best match with, stopped me overtrading! Enter wisely peeps

[kimokb11]

thx dude

[AirelonTrading]

You're more than welcome

[5210to444]

Minus the joint venture it's pretty much my story, only mines a step lower - I thought that being on top of the world of warcraft auction house markets would give me the understanding of price action I needed to trade real money. Too bad you can only get so far only knowing what supply/resistance is, managed throw out 4-5k so far for a 12 month incredibly expensive/humbling educating experience making every DO NOT mistake in the book. Wish I'd watched your video first haha

[Chance411]

New Market Wizards (1986)

Market Wizards (2002)

Stock Market Wizards (2006)

All written by Jack D Schwager.

The best books I've read on trading.

Required reading if you are interested in the markets.

[dalesalsa]

@Chance411

Yea but also:

Super Trader by Van K. Tharp

Trade your Way to Financial Freedom

The Definitive Guide to Position Sizing

All written by Van K. Tharp

Later!

[HigherPlanes]

I wont invest in stocks in bonds, too risky for me. I prefer investing in precious metals and land, things with an actual underlined value. What are your thoughts on precious metal investing?

[AirelonTrading]

It's a viable way of trading, but not investing (since there is no cash flow generation from wealth creation principles). But as with all trades, it has to have defined entrance and exits.

[noelp24]

brilliant!!!!!!!

[woshinwb]

what made u make all these vids

[AirelonTrading]

Basically, I always swore to myself that if I ever figured out trading, and how to do it? Then I would share that information.

I also made an entire video on that subject at:

watch?v=DA_jmIc6qAc

[RockyAlvarez1]

Great

[clovermintblue]

thanks for sharing your story. interesting and fun to hear...that is after we know where you are now.

[george4title]

Awesome Job!

[davincij15]

This was a good video. Thanks

[ohio1998]

Please get your investment fund away from BofA! GD banks are crap. Hopefully your staying warm. It's a freezing 60 degrees here in Florida.