Am I asking for too much?

A quick bio of my current situation:

Im a 23 year old student in spain currently finishing my degree in marketing management.

I am really interested in the markets and follow the main futures, stocks and warrants in spain.

My goal is to [eventually] be able to trade effectively and profitably with a consistent average return of 200 euros a day.

I dont mind if I have to study a new course, buy some good reading material, or joing a proper investment bank to learn the trade.

My question is: is my goal too unrealistic? Is earning 4K a month too much to ask? If not, what steps would you recommend a struggling young guy to eventually get there.

I have tried swing trading stocks and warrants, but my overall results are definitely a net loss.

I dunno whether I should jump into the markets again, or maybe I need more knowledge on how the system works.

I currently have EUR 7K in savings. Dunno how I can put this little amount to use in order to obtain my final goal.

Thanx for any input and/or advice from all you senior traders.

Chirag

 

Your goal should never be monetary when you start, your goal should be to effectively learn how to trade the market of your choosing. Once you learn, the money will come, but it will take a good amount of time to learn the game. Dont fall into the trap of "I am shooting for 200 a day" or whatever, this is a recipe for failure.

 

According to you then,

what would you recommend a novice to do in order to start "learning the game"?

 

the game?

you sound like an experienced old pro.

 

I was just quoting Steve's words.

 

Read a thread called Spyder Futures .... posted on Journals section.

Your goal should not be 200 EUR per day on average. If you learn how to trade, your ceiling will become the liquidity of the particular market that you trade, that is the max size it can handle. This could be 5k-50k USD per day. 1 out of 100 reaches this level.

Regards,
redduke

 

Depends what you want to trade. Once you pick an instrument (ie stocks, futs, fx etc), you then have to decide on a time frame. Personally I do intraday only at this point.
Once you decide on both of those, then I suggest watching the market trade from open to close, day in and day out for months. Over time, you'll see patterns and correlations. I would also recommend jotting down your thoughts about what you are seeing. After some time of strictly observing, you start to trade very small (100 shares or 1 lot in futs) in only the situations you know best and the rest of the time you continue to watch and learn.

Unfortunately, there is no quick or easy way. No book will give you the answers you need, it all comes down to experience and learning from things you observe.

 

ok. I understand.

What would you recommend a novice to pick: a particular STOCK or a FUTURE of a certain index?

I know that its a very subjective question, but IYO what would you recommend I start with?

 

I started with stocks but I'm not saying everyone should. It was just the logical choice at the time for me (this was 2003). Now I am trading futures. Futures has a lot more upside potential but a lot easier to lose and lose fast. So for a novice, it may be tougher.

Honestly, it wont really matter in the long run which you choose if you approach either one (futs or stocks) with patience, humility and an open mind. There is a lot of potential in both mkts and they both will require a lot of effort from you to learn.

 

have to learn the markets, to trade them successfully. trade a instrument that fits your personality. its a long journey .