Anxious to Begin - Clueless Where or How

Discussion in 'Professional Trading' started by PaulistaTrader, Jul 21, 2008.

  1. Hey everyone, I am looking for some sound advice from experienced traders.

    Currently I am a student studying economics at a top university in the United Kingdom (I am 19, turning 20 this year). I am doing a year abroad to study economics in Brazil. I am still a full-time student and would like to become a part-time trader as my studies are of a greater priority.

    I currently have about $6,000 saved up that I would like to invest, mostly to gain experience for a future job. In the end, my goal is to work in the financial sector, at an investment bank. However, my knowledge of financial markets is very limited. (I only gained a real interest in finance a couple of months ago when I had an epiphany that finance was the best thing to do with an economics degree. ) I am currently reading an MBA textbook in finance, and will hopefully try to lead into financial economics.

    I have thought of two options. Use a simple program such as E*Trade and create a diverse portfolio, setting aside around $2k for high-risk/growth stocks. Or, try to find a way to invest this money in Brazil and specialize in Brazilian markets which seem to be the way forward considering the US/UK markets.

    So I have a few questions? Is this a good strategy? Are there any text-books/online sites you would recommend? Does my knowledge of economics/maths give me any advantage in the field?

    Thanks in advance,
  2. Do a search on "How to get started". This board has numerous threads on this subject. Also, the Newbie FAQ answers this question and is a must read.
  3. JOEY O

    JOEY O

    Just from experience... It is going to be hard to create a diversified portfolio with only 6 grand, especially on E-Trade. Without trading a large volume, the $20 round trip commissions eat your money alive.

    My suggestion would be to hold a couple positions that represent a large percentage of your workable equity. ETF's are a great way to diversify if you don't have that much equity to begin with. If you are set on Brazil, check out EWZ.

    Good luck trading.
  4. Thanks for the advice, I'm browsing the forums bit by bit and have created a Google Notebook document with most of the FAQS. As I said, I've only been looking at finance for a couple of months- and there's a lot of information to digest.

    Joey, thanks for the advice. I've added some links for EWZ and ETF to read later. At first glance, it does seem like a good option for my budget.