Feedback in:
Hey Michael,
I just want to start off by saying I appreciate your podcast and your books of truth and honesty. My name is Gracie and I’ve been looking into trading but it has been a mess. I was looking for advice on how to start but all I could see were terrible YouTube gurus and scammers; everyone was just trying to sell something and I could not for the life of me understand how to even begin trading.
Some people were saying they had the “secret strategy,” others said their course “solved” all problems, and others said they knew what the markets were going to do weeks in advance which dumbfounded me. I thought to myself “How do they know that?” I thought I needed to learn every fact about every market if I wanted to trade, which seemed completely unattainable. That’s when my dad recommended looking at Ed Seykota, and somehow along the way I found your book “Trend Following” and it has been a life-saver. I feel like I actually have a foundation now to begin trading and I’m so grateful.
With all of that being said, I’ve been listening to your podcasts as well, and at the end you said to email you for the steps on how to begin trend following, so here I am! I also had some questions I wanted to ask where I needed a bit of clarity. Maybe they’re stupid questions, I don’t know, but I figured if I could ask anyone it would be you, so here it goes:
1.) If I have a [number] trading account to start with, is that enough? I don’t want to get stopped out of a position so early because my stop is going to be quite close due to proper risk management on an account of that size. I don’t have a ton of money currently, but I figured if I practice proper trend following techniques and rules then gradually over time I could be profitable if disciplined.
2.) How long should I keep a position if it’s going against me? I’ve heard that if it’s going against you for more than two weeks then cut it, but I also heard that in trend following you can be down money for a while but it’s important to stick with it because that’s just the flow of the markets and that the big profits are right around the corner. I just need a bit of clarity on this.
3.) I’m wondering how I find a 55 day high or a 2 week low? Do I manually count the days and go through the charts? Or do I use a simple moving average? I am a total rookie please forgive my ignorance.
4.) How volatile of a market should I trade? I’m willing to take risks but don’t have endless capital.
I know for sure in the future I will have more questions as my trading journey continues, so I hope you reply to this email to help me out. Again, I really appreciate the work you do to bring the truth about trading to us. I would be at the mercy of scammers and conmen if I hadn’t come across your book.
Looking forward to hearing from you,
Gracie D.
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