My youtube page:
Jigsaw Trading order flow software – highly recommended
Jigsaw youtube page:
Platforms and data feeds which support Jigsaw:
http://www.ninjatrader.com – available through the NinjaTrader brokerage
http://www.tradovate.com – a new brokerage which charges a monthly fee instead of commissions
https://www.multicharts.com – available free through AMP Futures
Additional order flow software/add-ons/educational material:
http://www.pricesquawk.com – This site is run by Graham Glover. He is a former student of mine who has developed several helpful order flow tools. He recently published a free manual on his site which describes prop shop trading exercises. It can be found on this page of his site: http://www.pricesquawk.com/prop-shop-trading-exercises/
http://www.tradingcourses.com – This is Guy Bower’s new site. Guy headed the recruiting department at Propex for quite some time and has recently launched his own site. I’ve read some of his material and we’ve had several discussions about trading and prop firms. He definitely gets the big picture. He has a lot of experience with DOM trading and he, like myself, understands the inner workings of prop firms.
Proprietary trading firms:
https://www.topsteptrader.com – I recently met with Conor Meegan (VP of TopStep business development) at a NinjaTrader conference in Denver, Colorado. He and Michael Patak (CEO of TopStep) were both there and were somewhat bombarded by other NinjaTrader partners throughout the day. Conor was able to break away and talk to me for a few minutes about their program and what they were planning for the future. After speaking with him, I can say that I recommend the company to anyone who is looking to get funded. Both he and Michael have spent time in the real world of trading and I believe he said Michael once traded in the Dow pit. It was obvious that they “get it”.
What sold me is that he told me they realized some of their initial combine parameters were actually counter-productive and encouraging bad habits. So they changed the parameters. There was once a time limit to reach the goal and now there is not. In addition, they have lowered their commission rates for their traders which is something most prop companies never ever want to do. They seem to be genuinely interested in finding and funding traders who have real potential and they are offering a deal which is very conducive to long-term trading success.
Now…most of my customers know how I feel about sim trading. I have a blog post which covers my ideas on the topic. I typically do not recommend that people sim trade for very long and I do believe that even the guys who pass the TopStep combine will come to find that live trading is much different. However, the combine process is their way of sorting through hundreds if not thousands of applicants and the parameters they now have set do encourage good habits. They are also offering real funding to people they’ve never met in person. They have to have some way to minimize risk and weed out the field.
If a traditional proprietary trading firm goes through an extensive interview process, hires six traders who are supposed to be the best of the applicants and then puts those traders on a desk in their office, the firm should absolutely not have those six traders on a sim for months on end. That is a different scenario. The new hires are losing opportunities to make money at real jobs and also paying expenses from what is usually a very small salary or draw. Or no pay at all. The traders are also usually required to trade every day even if the action is not conducive to making good reads. It is a different dynamic. If the managers of those firms are keeping their traders on a simulator for months, the managers are sabotaging themselves, imho.
TopStep is different because a person can trade from home, still work a normal job if needs be, trade only when he feels the action is conducive to making good reads and then basically have a free shot at making money. TopStep is obviously making money from the combines but they are also funding a substantial amount of people (way more than I would have guessed) and there is a support network in place. I would suggest you do not subscribe to a combine unless you have come close to hitting their objectives on a free simulator but if you are confident in your abilities, looking for funding and have the discipline and skill set to achieve the goals they’ve set, it is a very legitimate opportunity.
http://www.propex.net.au – I’ve spoken with several traders who have been hired by Propex and the company is legitimate. It’s one of the few remaining firms which doesn’t require its traders to have a college degree in programming or statistics.
http://www.genesistrading.com.au/ – Apparently Aliom and Epoch merged into Genesis. They have offices in Melbourne and Sydney.
http://www.positive.ie/ – I just discovered this firm. It was recommended by a trader I know who is based in Europe. I don’t know much about them but I like their writing style and it would appear they know a little something about the markets. If you look at that photos, you will notice a substantial amount of ladders on the traders’ screens. They have offices in Ireland and Croatia.
There is a more extensive list of prop firms in my basic course and more tips and advice on how to land a job as well as the pros and cons of working for a firm.
Good trading videos/documentaries:
The first three are dated but still provide excellent insight into how the game is played at the core level.
Floored: Into the Pit
Bulls and Bears
Charlie DiFrancesca – Treasury pit trader giving a good seminar
The Wall Street Code – HFT and algos
Money & Speed: Inside the Black Box
97% Owned – Not trading specific but I think every adult in the world should watch this video. It explains exactly how the monetary system works and why banks own the planet. There is some good insight into currency trading as well.
The Pit – It was recently streaming on Netflix. A documentary about floor traders in the coffee pit before it went electronic. It’s still a good documentary because it gives great insight into the realities of trying to trade for a living. It also has some laugh out loud moments.
Paul Rotter (The Flipper)
Pit trader gets wired
I think books about trading make a lot more sense once you understand how the game is played and get a feel for the big picture. The reason people do not make any money after reading most trading books is because most trading books do not break things down to the basics. The basics being…buy low…sell high…get in front of large orders that move the market…find large orders to lean on in case you need to exit quickly…etc. I’ve literally read over a hundred books on trading, investing, economics, and the like and these are the ones I always come back to when people ask for recommendations. Once you realize what all these traders were trying to explain, you can begin to focus on figuring out how that information now translates to screen based trading. Books can provide good information but these days video tutorials are a requisite in order to explain how these ideas come to life in real-time.
Market Wizards and Market Wizards 2
West of Wall Street
Reminiscences of a Stock Operator
Electronic Day Traders’ Secrets – No secrets here but all the traders interviewed were the real deal. A friend of mine with connections was able to sit next to Jim Shaw for two days. Very few people knew of him and yet he was one of the largest individual traders in the world at that time.
Trade Your Way to Financial Freedom – It will not show you how to do that but this book provided me with my first real insight into understanding risk to reward strategies and position sizing.
Anything recent which offers insight into high frequency trading and algorithms.