Becoming an experienced trader

How much it requires becoming an experienced trader?

Md Mizanur Rahman

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Is there any condition to end up an experienced trader in a quick session?

Give your opinion.

Marian Median

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ABOUT FOREX FORUM:

Forex Forum’s offers universal access to financial market intelligence and keep them up to date regarding Interactive Trading, Automated Trading, Commodities, Stocks and Indexes, Binary Options Brokers, etc. In an ideal world, every trader has permission to all market-moving information at the same time, the top Professional Forex traders from around the world united at Forex Forum to endow latest market intelligence. To make an ideal decision, traders need information that’s exact, true, consistent, insightful, and accessible. At Forex Forum you can explore meaning-full, reliable and actionable discussions followed by the professional trader’s advice.

What is the suggested approach for an experienced programmer to become an Algo trader, assuming that he is experienced in doing manual trading?

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This is what i have done

1. Language selected C#, Winforms
2. subscribed for live market data
3. found a stock broker who has support for executing trades through their api’s
4. since the data is raw, i have to take care of creating candles data at runtime and calculating indicator values too. since the candle creation and indicators are all calculated from my end i have more control over when to take trade(after candle completion or breaching price value) and can analyse each candle on complete.
5. i don’t have a server hence using local server WAMP.
6. since each and every tick data is important, internet connection must be intact all the time with the power backup. Just in case i have an wireless hotspot as well.
7. integrated my software with telegram api, so that the software automatically send periodic updates and i can also issue commands from my mobile using InlineKeyboardMarkup. Here is a screenshot of how it looks

7. added support for back test system as well

8. Integrated a probability based betting system

This is how my software looks

9. 8AM software launches itself through Windows task scheduler.

10. 8:30AM auto login to broker terminal.

11. download and load margins data from brokers terminal

12. Download and load instruments from broker terminal

13. 9AM start capturing pre market data

14. 9:15AM start capturing candles data and start screening scrips for strategies

15. Takes trade automatically when conditions are met.

16. since working only on equities now the system will close all the trades at 3PM.

15. 17:20PM Close software by itself, tracking currencies data hence need to track ticks till 5PM.

16. 17:30PM launch again through windows scheduler for filtering scrips for next day through integrated back test system.

17. DONE FOR THE DAY… again launcher starts next day 8AM

There are more details in between each step. For the entire setup to go LIVE it took me 9 months to program everything from scratch.

By the way each strategy i develop will have by default three modes inherit from its base

1. Paper trade – only entry and exit are recorded without any actual trade

2. Pilot scale(the name may be misleading) it takes only one quantity per trade. Mostly useful for live testing the scalping techniques which involves very narrow SL and targets. Since i always enter at market price and exit, there is a chance strategy developed may not give desired results at live market due to slippage.

3. LIVE – with proper fund allocation, position size and risk management including the integrated probability based betting system.

How to Become a Trader – Guide to Reach the Pros

There are a lot of misconceptions about online trading especially in depicting the real job of a pro trader. This time we will show what it takes to become a professional trader, what are the different paths you can experiment with.

What type of trader you want to be?

First, let’s make it clear what the trader is. Trader as a category, is so broad, that it is almost meaningless. Basically, you can differentiate two types of trader: retail trader and institutional trader.

Before we jump in, let’s see some example of professional traders:

Retail trader

Describing the group of retail traders is like analyzing the animals of a zoo. But in the end, there are only two types of retail traders. The ones that get fed up with losing, and the ones that carry on and eventually become successful. The bright side of the story is that from being successful, you can build your own brand and influence others like Tim Sykes (later on him). Also, retail traders can earn money from social trading – our eToro review will introduce you to this topic – or from collecting subscribers to webinars and special mentoring.

Institutional trader

Institutional trader as a category refers to the employee executing trades at the big investment bank, brokerage firm, or other companies. You will get fix salary and hopefully a hefty bonus at the end of the year.

However, this job requires that you can work under huge pressure and take the risk. You will risk your firm’s money. But guess what happens if you don’t get the market pulse for a couple of weeks or simply just lay back for a while until the next trading opportunity arrives? You are fired.

This handy table highlights the pros and cons of the retail and institutional traders.

+ Freedom of applying own trading strategy

+ Can trade any market

– Risk own capital

– High rate of failure

+ Fix salary plus bonus

+ Working with experienced traders

+ Support of analyst department

– Restricted to filling out orders

– High competition, difficult to get in

– Risk of fat finger deals

Seeing these major differences between institutional and retail trading you might ask rightfully? Ok, which one should I be? Looking a bit deeper may help you, so let’s go ahead.

During my own trading career, I started as a retail trader and failed a couple of times. I didn’t give up and finally, I ended up on the institutional side being able to invest other people’s money under regulated circumstances. As you can see the two categories are not excluding each other, so don’t think in an either-or way.

How to start trading?

Regardless of you want to become a retail or institutional trader, there is a path you have to go through. The first and one of the most important step is learning the basics. After you gained some knowledge, you have to test yourself in real. The last and probably not the easiest step is to trade with reasonable money.

Learn the basics

Here is some everyday trader lingo, let’s test how much you get it.

The risks surrounding the euro area growth outlook are considered to be broadly balanced. On the one hand, the current positive cyclical momentum increases the chances of a stronger than expected economic upswing. On the other hand, downside risks relating to predominantly global factors continue to exist. – Mario Draghi, ECB Press Conference

The euro is softening, and the RSI and MACDs warned of more downside risk ahead of next week’s FOMC meeting. The euro has slipped below its 20-day moving average (

$1.1190) for the first time since April 18. It has retraced more than 61.8% of the last leg up that began at the end of May from $1.1110. That retracement objective was $1.1180. A break of the $1.1100 area could quickly see $1.1050.- Seekingalpha.com

Both texts sounded Chinese? Time to learn the basics!

Every trader can reach temporary success but being profitable in the long run requires a lot of knowledge and experience. The good news is that you can quickly collect the basics from free educational sites and the brokers’ educational sites.

My top picks for free educational sites:

My top picks for broker’s educational sites:

Test yourself in real with demo and real account

Paper trading aka demo practice is a must, should be an intense period of learning. Generally, I recommend two things to do.

Be foolish: trade like a real gambler, forget about money management rules, stop-loss orders, position sizing, etc. You will see how easy and quick you can lose money.

Be serious: practice with the amount that you will deposit to your real account. Forget the $100.000 sum if you will only deposit $1000 to your live account.

Besides the demo account, trading on a real account is also very important. You will behave differently when you trade with your real money and in real nature. During your trades, there are some points you should take into account: stay informed, create your strategy, and analyze your performance.

Many people ask how long can it take until you become a pro? I can only share the same wisdom with you that I have heard on professional trader Birger Schafermeier’ seminar. He cited Malcolm Gladwell’s famous 10.000 hours observation on achieving mastery in different activities. Now let’s count. If you have full devotion and trade forty hours a week, it will bring you to pro level in 250 weeks, theoretically. That’s almost five years. The point is that even after several years of fighting with the markets there are ways of stepping up on the ladder.

Trade with reasonable money

There is one more inescapable element of becoming a pro trader. And yes, it is money. We all know the “how to make a million, start with a billion anecdote”. Well, while millions are not indispensably needed, certainly pocket money won’t break the ground.

There is a lot of retail trader replacing the needed capital with leverage and thus trade continuously under extreme risk. The end result? A good old margin call from the broker, or falling into apathy from not being able to progress.

So what can a sharp-witted, talented chap do if he has no chance to risk at least $50-100k as trading capital? Our hero can use other’s capital. As mentioned earlier prop trading firms are risking their owner’s money and basically they let traders, who are full-time employees, to chase the markets and earn the profit using short-term strategies, applying day trading strategies.

We at Brokerchooser love to find treasure and we don’t keep it secret. Without further ado here is a list of prop trading firms that will definitely propel a trading career.

Finding open positions won’t be difficult but getting in is challenging. Usually, excellent numerical and analytical skills are required and a degree in Mathematics, Engineering or Finance is not a disadvantage either.

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Choose the right broker

You have just read that one step to becoming a pro is getting experience in real circumstances. Ok, but at which broker you can do that?

Among the reviewed brokers, we have picked up these three brokers: t BrokerchooseIf you don’t have a broker or would like to find a better one, have a look at Brokerchooser’s top 3 selection for novice traders

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