Happy New Near everybody!

The market went down before new year's eve.

I guess it is the effect of selling to make money in time for the holiday shopping.

The market went sideways early only to lose its momentum and tumble itself into the ravine.

The market made a smooth upwards move today.

There was a big drop recorded but the bulls are determined to counter the bears threat.

And the market went up till the close.

A buy in the open and sell in the close is the trade of the day.

A classic trade that does not usually happened in this volatile market.

Trade close for a loss of 13 points...I guess a long trade is on the way...

Will add one more contract for YM at 12173 for a short trade...

Will try to short again YM at 12160, let's see if it will work...with stop buy at 12180...

Planning for the Long Term

by: Bill Zimmer
Thursday, December 29th, 2011 at 10:24 am

Are you interested in trading, but don’t have the capital to trade like you think you should? Even a talented, seasoned trader needs at least $20,000 to trade successfully. If however, you are a relatively new trader, you should plan on spending a fair amount of additional capital merely learning how to trade. In addition, it’s not enough to have $20,000 in your trading account. It must be $20,000 that you are willing to lose. Not that you would be happy losing, but it would not affect your life style. Losses are commonplace in trading, especially when first starting out. If you trade with scared money (afraid to lose $), you will always trade in a panicked state, never at ease. When you feel on edge, you’ll tend to make numerous mistakes. In any business venture, lack of capital is the primary reason for failure. Do you have $20,000 to spare? If you don’t, it’s all right. You don’t have to give up trading. There’s a lot you can do to get ready.

Ideally, it would be nice to be well capitalized and be able to learn to trade the markets like a pro, but not everyone has a spare dollars required. If you are like most people, you need to scrimp and save to build up the capital you need, and there’s no guarantee that your investment will pay off. There is however, no reason to feel disappointed. You can make a solid long-term plan. Many traders have spent years saving up capital and learning how to trade in order to capitalize on the market conditions that allowed them to make a killing.

Many people pursue trading, but as many trading coaches have observed, less than 5% seem to make it. It takes time and practice to master the markets. Many people think they can become an overnight success. But it often takes years. The difference between the ones who make it and the ones who quit in despair is a strong commitment to the field and a reasonable plan for obtaining success.

In many professions, a person must pay his or her dues before earning the right to say he or she is a seasoned professional. In business, a person doesn’t become a manager immediately. A law school graduate doesn’t become an instant partner. A medical student isn’t allowed to perform a difficult operation solo. So why should it be any different in the trading profession? It takes years of practice to become a profitable trader, and if you are like most people, you have a job already. You can’t just quit your job and pursue trading full time. You have to fit learning how to trade into your current life. It’s much like going to night school to get a graduate degree. You have to put in time and effort to study the markets and learn how to trade. In the end, it will be worth the time and effort.

What might a plan look like? First, you will need to save up trading capital. Second, you need to study the markets in order to develop an intuitive feel for how the markets move and what forces move them. Third, you have to be willing to make practice trades. The purpose of these trades is not to make profits, but to build up your intuitive skills. Fourth, you might also plan on spending money on trading books, perhaps a trading coach, or on classes to learn how to trade.

Don’t worry about learning to trade overnight. It’s going to take longer than that. Work at your own pace. It may be a while before you develop the skills to learn to trade profitably. Persistence is the key. Trading is an inherently rewarding endeavor. You should learn how to love trading, and develop a passion for it.

Once you learn to trade for the shear love of the game, you’ll be ready to tackle the challenges the markets offer.