Dear All, I've been trading full-time for a few months now, and I like it. I dove in with decades of tech experience, which is serving me well. I've been able to profit by carefully evaluating and picking tech winners; however, the minute I leave my happy little tech world, I get crushed. The problem is that I don't have much formal education in the business, and find myself lost in many financial and economic discussions. What does a P/E ratio mean? How is the VIX linked to the S&P? What are swaps? How do futures work? What's the difference among stocks, bonds, and commodities? Why does everyone have a strong opinion about Forex? How is margin calculated? I have so many questions. I really want to learn the fundamentals. Whether it's financial analysis, computer programming, or my tennis game, I appreciate fundamentals. I need to get smarter. Where do I start to learn the basics of this business? Where's a good starting point to learn the fundamentals? My own ideas are: 1. Books. A friend recommended "Paul Wilmott Introduces Quantitative Finance." Any others? 2. YouTube. Search around and take what's there. 3. Lynda.com. They offer some online courses, and for $25 per month, the price is nice. 4. Formal (Classroom) education. I am fortunate enough to live near NYC, and have taken professional development courses there. Perhaps a course like this? https://www.sps.nyu.edu/professional-pathways/courses/FINA1-CE9000-introduction-to-the-markets.html Any "forward guidance" would be appreciated. Thank you for your help. Sincerely, Keith
Do you know how to read charts like back of your hand? I have automation and it often buys and sell short symbols I don't have a clue of what they are nor do I really care, they have filter of what is allowable as far as volume, dividends if buying, optionable, beyond that, I use zero fundamentals. Am very surprised you have tech experience and don't know how to use Google? Formal education is for getting degrees, traders don't need this, I never did. It more like water cooler discussion. Unless they going to teach strategies, you be wasting $25.
If you're looking for a good grounding in business, check out "The Ten-Day MBA" by Steven Silbiger. I have the first and fourth editions. Steven is an excellent author, and laid it out for even the average person to understand, and at times very entertaining. The best chapters to read for what you want to accomplish: accounting, quantitative analysis, finance and economics. Good luck!
recently saw a guy walking in a t-shirt with a sign on it: "I do not use Google - my wife knows everything !"
in our business it does matter where one starts , what matters - where one finishes here is a book for you - you will know everything what is there to know about fundamentals (also as a trader you do not need it) when you will finish it (if you will finish it)
Thank you for your helpful and supportive advice. With this, I respectfully disagree. If I'm going to trade, I want to be a "student of the game," and learn everything there is to learn about finance, economics, trading... and whatever else this field has to offer. This comment I do not understand.
@kmiklas: My friend, you just dove into a world of complexity, a gamut of information and fierce competition. My first advice would be: Take your time and do not expect to learn everything within a year or so! Like just21 said, just google and read....for hours, days and months. You WILL be overwhelmed by what is out there so don't get frustrated. Second advice would be: Skip all the formal education bullshit like MBA's or the classroom education you mentioned. It won't serve you with regards to your ventures. Third piece of advice: Stick with the asset class and sector you are comfortable with and work from there. Bottom up, instead of top down. You are a techie, so stick to tech stocks first since you are familiar with the lingo and the factors that influence this sector. Then work towards other asset classes from this starting point. Also, I'm not quite sure if it makes sense nowadays to go the quantitative route since this field is so crowded by the big guys and they have just more resources than you. Go find your niche somewhere else. Some guys do it with charts, some guys read tape, others trade pairs and spreads, perhaps you can find something there. Always remember, this business belongs to the inovators and independent thinkers, so don't expect to get anything valuable from anybody. Nevertheless: Options, Futures and other Derivatives by Hull should not miss on anyones desk, even if you read it just in order to know how the other guys price those things.
Lord, please grant me patience... NOW! Yes, I feel like I just jumped into the middle of the Atlantic Ocean. Here I would disagree, if for no other reason than the contacts that I will make. Fully agree. That's exactly what I'm doing: sticking with the "Information Technology" equities in the S&P, and the "Technology" stocks in the Nasdaq, NYSE, and Amex. What would be a good logical next step? True, true. I was taken to the cleaners a few months back on this. I like fundamentals. Really digging into the essence of a company. I've had some nice hits from that; I have good vision and discernment. ..excepting the the valuable information that you just gave me in this thread. Yes, it's on my bookshelf. One of the NYU Professors recommended it.