The video below takes place on Martin Luther King Day, one day before the market opens down Tuesday morning, January 22nd, 2008. The futures trader in the video went long 10 ER2 contracts (mini Russell 2000 index) the Friday before. Unfortunately, the market gapped down and took the poor guy for his life savings. The video is pretty disturbing to watch and contains a lot of profanity. If anything, it should teach us to expect the unexpected and also that the market is unforgiving.
The Traders Website
For the past week or so since I mentioned that I was thinking about getting into trading stocks again, I’ve been immersed in the subject. Initially it will take a little focus off of forex until I can balance the two. I realize I have a lot to learn about the stock market with its multiple exchanges, multiple industries and thousands of securities.
Right now might not be the best time to go long on any stocks considering the hit the market has taken but I also figure that it may be the best time to learn. I’ve heard too many times how people have successfully traded during the "good times" when the market is flying high (e.g. dot com) only to see them lose it all when the markets turn sour.
Like I said, there’s a lot to learn but I’m going to concentrate on reading and getting organized. I subscribed to the Kirk Report’s members only site because I’ve followed Kirk for years now and have always respected him. For only $50, there’s a lot of information that he provides that can benefit me. I’ve always been interested in his methodology and how he uses fundamental, technical analysis, and stock screening of off the beaten path stocks.
Although I’m getting more interested in the stock market, I will continue trading Forex. Becoming a successful forex trader will remain my primary objective. We’ll see how all of this goes. It’s hard enough finding enough time in the day to write on this blog.
I’ve been trading forex for about 2 1/2 years now. I’ve had some breaks in between but overall, it’s been a pretty steady run. While I’ve been trading forex, I haven’t strayed outside of this market other than investing in mutual funds or index funds. Last night I started thinking about getting more involved in other markets, specifically the stock market since I have previous experience. I’ve traded stocks in the past turning a small profit but I never got immersed in it.
Today I searched around for a stock market demo account but unlike forex, you’re not going to find any of your major stock brokers that offer them; at least I don’t know of any that do. I stumbled over a bunch of "fantasy" stock market websites, some free, some that cost a fee to join individual contests. Marketwatch has good stock coverage and offer a virtual stock exchange but I liked WallStreetSurvivor much better. Wall Street Survivor offers prizes and though they’re not easy winning since there are thousands of contestants, I liked that the website was a dedicated stock market fantasy game and free. They currently have a $50,000 contest that runs from January 1st until sometime in April, daily prizes, and weekly prizes. I’m pretty excited to get into the initial preparation phase of possibly trading in the stock market. When I traded stocks in the past, I didn’t use technical analysis, position sizing, or much of anything I use now so it will be interested to see how I can transition from trading forex. I’m certainly not taking the focus off of forex trading, just trying to expand my horizons….