Forex for Beginners courses : Basic Training5
Part 5
Part 5
Other Important Issues
In addition to the points just raised, a number of important issues warrant attention from all aspiring
futures traders, regardless of their eventual orientation, system, or trading methodology.
Trade Alone or With a Partner?
There are pros and cons to each alternative. If you trade alone, there will be no one to help you with
your work (unless you hire employees) and there will be no one who can trade for you in your
absence. Furthermore, there will be no one with whom you can discuss various markets, indicators,
techniques and trades.
To those individuals who need this type of assistance, a partner or well-trained assistant might be
desirable. However, before you make such decisions consider the potential negatives of having a
partner.
Too Many Cooks Spoil the Broth
Futures trading is a ‘loner’s game’. Sometimes a partner or partners will get in your way. You
may be influenced to avoid some trades you should have made and to make some trades you
should have avoided.
Who’s Responsible?
It is always good to know that you alone have the responsibility for profits and losses. If you
have a partner or partners, it may be difficult to know who is responsible for each decision.
Lacking such knowledge will slow the teaming process and may, in fact, stall it entirely.
Sharing the Profits
Do you really want to share your profits with partners? Granted, they may also share in your
losses, but since you may end up with more losses if you have partners, the benefits may prove
nil.
Do you Want to Share Your Research?
Many of us consider our research proprietary. We work long, hard hours to develop trading
systems and methods and we may not want to share these with a partner regardless of what he
or she may bring into the relationship.
Slower Decision Time
As you know, decisions in the futures markets must be made quickly. Many times the
presence of a trading partner may slow down the decision-making process and, hence,
severely limit the speed with which you can execute orders. This, as you can well imagine,
can frequently have negative results.
Trade for the Short Term, Long Term or Immediate Term?
I could teach several courses just addressing this subject. There are so many variables to
consider, not the least of which are your personality and temperament.
Factors You Should Consider in Making this Decision
• Trading System
While some trading systems are more ideally suited to short-term trading, others are
better suited to long-term trading.
• Time Availability
Only you know how much time you have available. To trade for the short term or
intraday you will need to make a major time commitment.
If you have another job and you can’t make this commitment, don’t even try! Be
realistic and determine what you can do with the time you have available. This may
automatically make your decision for you.
• Commissions
Are you paying sufficiently low commission’s to permit short-term trading with a
positive bottom line?
• Personality
Can you take the pressure of short-term trading? Are you more in tune with long-term
trading, its less demanding pace and the patience required?
• Health
Believe it or not, health is a consideration. If your health is at stake, then by all means
don’t push your luck. Trade with that period of time in mind, which will best be suited
to any health concerns. Answering this question honestly will help make many deci-
sions for you without considering any of the other aspects.
• Data
Many individuals are under the false impression that they can day trade the market
without a steady source of tick-by-tick data. Don’t fool yourself.
To day trade you need up-to-date, tick-by-tick, accurate and reliable data. If you can’t
afford it, if you don’t know how to use it, then don’t kid yourself. Day trading is not for
you.
In addition to the above, there are other factors which are specific to your individual situation that
must be considered before a final decision is made about the type of trading you wish to do.
This is an important decision. Do not take it lightly.
Part 5 End
In addition to the points just raised, a number of important issues warrant attention from all aspiring
futures traders, regardless of their eventual orientation, system, or trading methodology.
Trade Alone or With a Partner?
There are pros and cons to each alternative. If you trade alone, there will be no one to help you with
your work (unless you hire employees) and there will be no one who can trade for you in your
absence. Furthermore, there will be no one with whom you can discuss various markets, indicators,
techniques and trades.
To those individuals who need this type of assistance, a partner or well-trained assistant might be
desirable. However, before you make such decisions consider the potential negatives of having a
partner.
Too Many Cooks Spoil the Broth
Futures trading is a ‘loner’s game’. Sometimes a partner or partners will get in your way. You
may be influenced to avoid some trades you should have made and to make some trades you
should have avoided.
Who’s Responsible?
It is always good to know that you alone have the responsibility for profits and losses. If you
have a partner or partners, it may be difficult to know who is responsible for each decision.
Lacking such knowledge will slow the teaming process and may, in fact, stall it entirely.
Sharing the Profits
Do you really want to share your profits with partners? Granted, they may also share in your
losses, but since you may end up with more losses if you have partners, the benefits may prove
nil.
Do you Want to Share Your Research?
Many of us consider our research proprietary. We work long, hard hours to develop trading
systems and methods and we may not want to share these with a partner regardless of what he
or she may bring into the relationship.
Slower Decision Time
As you know, decisions in the futures markets must be made quickly. Many times the
presence of a trading partner may slow down the decision-making process and, hence,
severely limit the speed with which you can execute orders. This, as you can well imagine,
can frequently have negative results.
Trade for the Short Term, Long Term or Immediate Term?
I could teach several courses just addressing this subject. There are so many variables to
consider, not the least of which are your personality and temperament.
Factors You Should Consider in Making this Decision
• Trading System
While some trading systems are more ideally suited to short-term trading, others are
better suited to long-term trading.
• Time Availability
Only you know how much time you have available. To trade for the short term or
intraday you will need to make a major time commitment.
If you have another job and you can’t make this commitment, don’t even try! Be
realistic and determine what you can do with the time you have available. This may
automatically make your decision for you.
• Commissions
Are you paying sufficiently low commission’s to permit short-term trading with a
positive bottom line?
• Personality
Can you take the pressure of short-term trading? Are you more in tune with long-term
trading, its less demanding pace and the patience required?
• Health
Believe it or not, health is a consideration. If your health is at stake, then by all means
don’t push your luck. Trade with that period of time in mind, which will best be suited
to any health concerns. Answering this question honestly will help make many deci-
sions for you without considering any of the other aspects.
• Data
Many individuals are under the false impression that they can day trade the market
without a steady source of tick-by-tick data. Don’t fool yourself.
To day trade you need up-to-date, tick-by-tick, accurate and reliable data. If you can’t
afford it, if you don’t know how to use it, then don’t kid yourself. Day trading is not for
you.
In addition to the above, there are other factors which are specific to your individual situation that
must be considered before a final decision is made about the type of trading you wish to do.
This is an important decision. Do not take it lightly.
Part 5 End
