Have $25K.......Best way to begin learning to trade it

Discussion in 'Professional Trading' started by jason586, May 8, 2007.



  1. You seem like a driven overacheiver !! Id say thats a great start to have in pursuing Trading.

    Iam not a betting man but I would suspect you will be successful in trading.

    Just be patient and know it will NOT come overnight. And learn thru trial and error as well as learning from other more experienced Traders.

    Learn to let your winners run and be quick to cut your duds.

    It only takes being right about 30% of the time if you have good money risk management. Thats no joke
     
    #71     May 10, 2007
  2. stoked

    stoked

    do you have any personal experience with scott trade? ima newbie and opened a account with ib. no problems but if theres a broker that you found had more benefits - like charts or research - for trading stocks and futures?
    fwiw im in school and am not trying to make a living out of this at least yet. im just getting started and like to stay on top of the market and business news.
     
    #72     May 11, 2007
  3. You cant trade futures with Scottrade, and their commissions are higher than IB's.

    However I think the their charts on the ELITE platform are superior to any other platform i've seen.

    The research section for Scott is amazing and its all been re-done. As far as research on IB...i cant comment.
     
    #73     May 11, 2007
  4. SDticks

    SDticks

    I don't know where you're located, but you're best bet is to get a job at an actual proprietary trading firm. Not these pro firms that require a deposit. An actual prop firm where you trade firm capital, get a profit split, and are an employee. Most are located in Chicago and deal with futures. There are a few in other locations. Not easy to get into. You can use your 25k for moving expenses and living expenses because the salary at these firms is very little to non-existant, but you don't need any capital. If you really want to learn how to trade this is your best shot at it.

    Next best bet is to go open an account at some pro firm that will offer you some guidance. These are the so called "prop firms" of elitetrader. They are not prop firms, but retail firms that let you leverage your capital. Ones that offer good guidance are hard to find as most of the strategies taught at these places have the goal of generating commissions, since that's how they make money. There are however some good ones out there, so I hear. Depending on where you're located, you may have to go somewhere for a short-term stay, to get "trained." Then you return to your home and trade remote at most of these places. Most of these firms concentrate on trading stocks.

    Other than those two options, you're limited to figuring everything out on your own. It's the hardest approach. You probably will not find a mentor who you can pay to show you how to make money. Most likely such mentor cannot trade and will just feed you bullshit.

    If you really want to trade you need to make sacrifices. Which usually take the form of not taking a paycheck home for a long time, which you already know and unless in a location with a good trading firm around, it means moving. Good luck.
     
    #74     May 11, 2007
  5. Thanks - I am a bit extreme when I pursue something or becoming something which can drive my wife crazy. But after 5 years of marriage she is beginning to get used to it. She just has to feel more important than my current project which I am still continually learning to do as well.

    Alright, more research to do.
     
    #75     May 11, 2007
  6. Been reading all the educational info at http://hardrightedge.com - thanks again!

    Will start working through http://www.lbrgroup.com/index.asp next.
     
    #76     May 12, 2007
  7. Have you tested any demos yet?..

    They're free, and some even use live data on the demos, but most data is delayed.

    Dont worry about how easy/hard it is to make money on these demos but rather how easy they are to use.

    One of the things I look for is how visually appealing the charts are, and how much I can customize them to my needs.

    ALSO check out www.briefing.com , and www.trade-ideas.com . Briefing has a 14 day trial, but make sure you cancel it IF you dont like it because it will automaticlly start billing you. I use the platinum edition, and its been a big help.

    cm
     
    #77     May 13, 2007
  8. Update: I moved the money ($24,000) into some no-load mutual funds at fidelity on May 17. Account currently sits at $26,300.

    FSEAX - 19% (two months)
    FLATX - 14% (two months)
    FEMKX - 14% (two months)
    FLVCX - 04% (last 30+ days)

    FECAX - 1.5% (first 30 days, then moved to FLVCX)
    FIUIX - (1.5%) (first 30 days, then moved to FLVCX)
    FSUTX - (4.5%) (first 30 days, then moved to FLVCX)

    Also, we found out about some money my wife's grandmother had left her that was sitting in JPM, WB, VZ, IDA, and money market at Schwab that was bought between 1998-2000. I cashed it out which is another $19,500 to do something with.
    I am considering either putting it in the following no-load fundsnetwork funds at fidelity which are even more aggressive:

    DXZLX - 122% (last 12 month performance)
    DPCRX - 96%
    UUPIX - 82%
    DXCLX - 55%

    or

    trading the YM similar to http://www.elitetrader.com/vb/showthread.php?s=&threadid=96913 - but striving for only 2% a week.
     
    #78     Jul 23, 2007