Hello, I am new here on elitetrader and would love to learn more about stock trading. As I just started out I have tons of questions. I am 22 years old, previously been watching videos on Forex now just got into stock trading and found about elitetrader. Now I still dont really know where and how to start, so any guideline would be very helpful. I know at forex you can just download MT platform and trade from there. How can I do stock trading with so many companies out there? Like...on MT I could find only Forex no company stocks. In very confused as to wich way should I go, forex or stocks? Thanks for reading have a great day everyone.
1) Don't quit your day job to trade ... 2) Short term price movements are random and are driven by institutions ( hedge funds, bank trading desks, High Frequency trading, etc. ) which pulls your odds of success to 50 / 50 3) If you "need" to be a trader, develop your investor side also ( longer term holds ) 4) Open and annually fund a ROTH IRA. 5) One can use Exchange Traded funds "tactically" ( again long term mindset ) and garner decent compound returns with less "screen" time. These can include QQQ ( midcap growth), VBR ( small cap growth ) and assets will grow fastest in a ROTH IRA. QQQ holds and reflects the performance the best stocks in the world. Trying to build a portfolio of or trade individual stocks is futile against the QQQ. VBR reflects stocks of the highest decile stock universe ( small cap value ) that has continuously outperformed all other universes over the last 90 years. 6) use quantitative research ( objectively based, mathematically driven ) vs.technical analysis ( subjectively based, visually cued and subject to "reflexive" system disonance). 7) don't use leverage ( a ROTH doesn't allow it, so you're protected from "yourself" ) 8) don't be afraid to "sit on your hands" (stay in cash) for a day, week , month ( a longer term tactical process has one sitting on their hands for many months sometimes
You should be confused because it ain't easy. Statistically, over 90% of new entrants lose everything and fold shop in 6 months. Regardless, the basic premise applies too all financial products, be it stocks, options, futures or forex: Buy Low and Sell High. You can start by investing time into reading about the basics of trading. There's a ton of free resources about trading and investing on the web. Just google "trading basics". BTW the market is very volatile these days. Don't make the plunge until you know exactly what you're doing. Don't worry, the market won't go anywhere. It will still be there for you after 6 months (or even 6 years) of learning.
If you're into podcasts, check out the "Better System Trader" podcasts. Lots of interviews with professionals that give perspective. http://bettersystemtrader.com/ I'm more of an investor, trying to learn trading, and I find these very helpful. In my experience, systematic trading is more difficult than it seems - not because the system may not work, but because systems may be more difficult to stick with than I think they are. Keep things small until you work out the kinks and are comfortable with what you're doing. edit: btw, I only trade stocks. I know nothing about forex, but I do recall the stories of swiss franc movement that wiped people out last year. That's enough to keep me away. http://www.bloomberg.com/news/artic...trade-is-said-to-wipe-out-everest-s-main-fund
I would sugeest exploring www.interactive brokers.com. They trade both forex and stocks. Their platform is extremely customizable to your exact needs. Before you make your first trade you will spend about 6 months setting up your screen and trading in your paper account.
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% Mr hamptons; i like this stock mmpost. One elitetrader suggested learning with one share, most are not that wise.....NOT a prediction but one share QQQ is about $97.77. PS I like paper trading, also; but money will teach you things paper investing can NOT. Looks like we're in a bear market; i dont really exspect it to last 3 years like bear 2000,2001, 2002 did. But none of this is a prediction; wisdom is profitable to direct. A private library, +public library cards may help,+ helped me........................................................................................ IBD newspaper gives a free 10 day trial; learn 50 day-200 day moving average
I don't recommend Forex. It's not a well regulated industry. It's better to trade currency futures. I would recommend either you trade equities or futures. You will need to choose your direction first. If you want to work as a professional, go study your Series exams, pass them, and join a professional brokerage. If you go the nonprofessional retail route of investing, you will have to educate yourself. It can take years. If you like small caps, go with Tim Sykes. He's the expert in this. http://bit.ly/1OxxNuC If you want to day trade equities hard core, go with Nathan Michaud at Investors Underground http://bit.ly/1mRR7YH Both give you the fundamentals to trade anything. From there you can progress to other things like futures or whatever you like. You must find yourself and trade what you like. Good luck.