So, people on many forums in general will tell you to passively invest by buying Vanguard index funds and letting them sit for 40 years so you can have a few hundred thousand for when you retire. That's fine and all, and I do that too, but I want to know how many of y'all do this every day as your bread and butter. How many of you guys have a significant amount of capital (at least 100,000) that you actively manage. How many of y'all buy and sell individual stocks? How many of you guys perform fundamental analysis and use statistics tools to help you buy and sell? How did those of you who do this for a living get to that point? Do you work for a bank, or do you do all of your trading at home? How did you get into it? How old are you? Did you go to school for it?
Since this is your thread, I think it's only fair that you answer all of the above questions yourself before asking anyone else to do it.
Well, you're right I quit my job, started a company, failed, and then decided to be a full time trader and investor. I've been pursuing this as a career from home, self-employed, for around a year. I've managed to lose at least $40,000 so far... And let me tell you... It wrecks your confidence. But I am staying after it. I've experimented with day trading, swing trading, timing the market, position trading, but and hold, the Buffett approach and reading 10-Ks. But I might lack the discipline to be successful. Time will tell. You do learn something from every experiment. I do like to read and think and so basic math. I do think that's all there is to it. I like this career because, though it is financially risky, it's physically safe.
I think the simple fact that you are trying everything at once and jumping around is the main reason for lack of true success. Most traders here will tell you their success came from finding the approach that best suits them and pushing through it to get better and better. Imagine saying you want to make the Olympics as a newbie and tried skiing, swimming, gymnastics, track and field and bobsledding but still have not made a team... Stocks, options, futures...day trading, swing trading, long-term holdings, etc... cannot drink from a fire hydrant at full blast and not expect to be blow out.
Pick a couple things that seem promising and try to understand all the details around those. Specializing is better than diversifying until you get strategies that clearly work.
option coach is correct, identify an area that speaks to you and go after it with all you've got. If at some point you develop a high level of proficiency at that, you can expand your skill set if you like. It took me years to become consistently profitable as a day trader and there is nothing unusual about my path. Most traders put real money on the line before they are ready. The market doesn't care that you want to make money but it will give it up....when and if you are ready. I went to B school but that was irrelevant to what I do. I trade from home and wouldn't change a thing.
+1 I have a GBP400K trading account (would be more than that, but I take all profits above the HWM away from it) and a significant chunk of money in 'buy and hold' investments (so I do the vanguard thing as well). I buy and sell stocks, but not as part of my trading account. I'm UK based, and trading individual stocks is expensive without using derivatives. I have 3 chunks of money- a fully automated futures trading account some individual stocks a diversified portfolio of ETF's Purely technical (moving averages and similar, none of this 'price action' nonsense. I use fundamental analysis on the buy and hold side. see http://qoppac.blogspot.co.uk/p/about-me.html I can't be bothered to type it all in. at home 41. Is this for some kind of survey? Not sure how one goes to school to learn how to trade. GAT
I am 23, I have been around since 4 years, I consider it to be my bread and butter. However, I don't have lots of capital (5K) and few rewards. Actually I don't consider that my career took off, but soon or later, it will. I played with futures, but from my point of view, there ain't enough opportunities. So I am currently learnin' to play with options, on stocks. I trade only the statistical distribution of the market. IMO, There ain't fundamental nor intrinsic value. I'll get to that point learning from my and others mistakes. At 30, I'll earn a decent interest from my accumulated capital. Retire young and always say F*ck you money. I don't know how I got into it, But that's where I'll end. Autodidact. School won't teach you how to deal with uncertainty. They'll only ask you for what they know the answer. You'll always be able to look for the solution. Somewhere ... On those Textbooks stuffs... Cheer, Ps: Feel free to lapidate me. Sorry if it doesn't fulfill the expectations. Or just let it goes with the wind, just like you paid attention to your last breath.
I started/bought/sold individual stocks during quarterly earnings in 2009 -- was more like gambling. I also bought AIG, Fannie Freddie Macs, Banks, etc...they were all crazy back then. I made all the typical rookie mistakes back then. My account was up 30% at its peak, before losing about 40% just as fast. I trade solely options now though...they make stock returns look like child's play. I'm so grateful for the housing crisis/2008 market bubble. -- I wouldn't have discovered or be in this world today...if it wasn't for all the big headlines during those days that spiked my interest in the market ...everyday you would see news headlines of major stocks rising/falling 10%+ Fundamental analysis in a trading forum sounds hilarious, it's not really applicable. I trade from home. I went to an average college, finished averagely. Like others have said above, you should find what you're good at -- and just trade that. Pick something that makes sense to you...that fits your style/personality/risk level,etc etc.