23 y/o with several options

Discussion in 'Professional Trading' started by poi_boi_23, Jul 16, 2009.

  1. Hello everyone,
    I'm at a point in my life where I have several options that could shape my future, but I wanted some advice. First off, I'm currently in school and about to graduate (1 Year) with a bachelor's in Finance. I'll be getting an internship within the next 6 months which will likely transpire into a full-time offer. Secondly, my mother has set me up pretty well, she owns 2 homes and wants to buy a 3rd, and within the next month I'll have the title on the newest home transferred to my name. She also has given me 50k to start trading in an effort for me to pursue my desire of swing trading with possibly some daytrading. I've done sim trading for over a year on and off, and have always been profitable, but I'm looking for a clear cut system on swing trading. For a person in my situation, what's the best broker? Ideally I'd like to be a swing trader, with maybe some daytrading here and there.

    Here's my options:

    1) Graduate and take my full time job. Be happy that I already have a house and just build up my wealth with money in mutual funds.

    2) Graduate and take my full-time job. Pursue swing trading heavily and after 5 years become profitable enough to quit my job.

    3)Graduate and take my full-time job. Become a real estate investor on the side. Swing trade on the side as well.
  2. Kind of a redundant question, don't you think?

    Of course option 2 is the most plausible unless you honestly think real estate will appreciate significantly over the next 5 years.

    Swing trading and day trading both rely on market experience and analysis. Trading with real money presents challenges that will be difficult to overcome unless you have a) proper guidance and/or b) excellent self-analysis and work ethic.

    Option a) will be easier for you to obtain pending that (given good grades and good interview skills) you get a job at a hedge fund or trading firm.

    Option b) requires discipline, effort, commitment and then some. Are you up to that level of sacrifice *combined* with working a full time job?

    5 years is a good timeframe if you choose to start on your own, however, do not throw 50k at the endeavour. Create a plan where you 1) don't overtrade, 2) no leverage, and 3) tiny tiny tiny position sizes. Given you do this and learn properly you should have some of that 50k left after 3 years.

    The truth is it will take you a while to develop a good system. You'll have to formulate a variety of concepts and learn how to backtest properly. This takes time. Do not buy or use someone else's system, take the time to do it yourself. If you don't have the time, invest the 50k with either a good trader or a decent hedge fund.

    Brokers: any with a low per share cost (IB is cheap).

    Software: any that allows you to backtest (Tradestation, WealthLab, Amibroker, etc).