I've been trading for a few years. Got into stocks, did okay for awhile, then lost money and closed the account. Made a little bit through stocks to open an account to trade futures, did well, then blew everything. I'm only 18, going off to college next year, but I'd like to be able to trade there. I was thinking about going with a prop firm for the summer. Any ideas or suggestions on who to go with or what to do? Basically, I need to learn to trade not using my own money.
Trade forex to learn how markets move, you probably won't make money but u will learn and the only way to learn is by losing money. Just in forex you can open an accout with oanda for as little as $100. I am going to be a junior in college and that is what i have done. Two years later i have enough confidence and the ability to trade well.
Naz, I was trading forex futures for awhile. That is what I was making my money in, and actually I've been doing a demo with Oanda for awhile. My parents don't want me trading in college because they fear it will interfere with my studies. I just fear it will interfere with my social life. How do you trade in college without it getting in the way?
I think for someone relatively young, try to find a mentor. Be an intern at a small hedge fund, work for free, show your enthusiasm and persistence and get someone to take you under their wing. I think you'll be much better off in the long run with someone to guide you, instead of the possibility that you'll need to unlearn alot of bad habits every beginning independent trader accumulates along the way. One of the more attractive "perks" of trading is the idea of being your own boss, destiny in your own hands etc., but if I had to do it all over again, knowing what I know now, I probably wouldn't try to do it all on my own.
I work at the Chicago Board of Trade over the summers, and my dad is a trader there. However, floor trading is bound to die sometime, so I've never been big on starting a career in it. However, it's definitely something I'd like to do on my breaks during college just to learn the basics.
Floor trading is totally different from what I do. I've seen lots of traders who left the floor to trade electronically, but they failed. Sure, my dad knows the basics, and has been as helpful as possible, but his help only goes so far because of the differences between pit trading and electronic trading.
Yeah, I know about the differences, but what I really meant is that since your dad is in the industry he might be a better person to help you find who to go with and what to do.
I would suggest backtesting your own original trading ideas yourself in your spare time. Perhaps even partner with a computer science major when you go to school. Backtesting will save you time and money. Actually trading each new idea in real time is too costly in terms of time and money. Let the data give you an indication of whether or not its a good idea. Just like doing homework. In the following thread I lay out my advice for a struggling trader: http://www.elitetrader.com/vb/showthread.php?s=&postid=575761#post575761 Please read the entire thread. Lastly your age is a huge advantage. If you can exit college with a few profitable trading strategies you will feel like the king of the world. Hope good things come your way.