What are realistic goals for an 18-year old swing/position trader?

Discussion in 'Professional Trading' started by TraderGreg, Jun 7, 2008.

  1. Thank you for your replies. I have spent my time doing a variety of things, mainly getting information a mile wide and several inches deep in the market. I have read all the tutorials except the ones on real estate on investopedia.com, and the rest on thismatter.com that the book didn't cover.

    I have exhausted the library, reading the introductory books, a Warren Buffet Book, Lessons from the legends of wall street, and several others before. I knew from the start I wanted to be a trader, but I had a tip off from another trader to get a feel for everything in the market, and I wanted to start with investing.

    Then, I read the Toni Turner book on short term trading, Nison's Candlestick Charting Techniques, a book on charting patterns (by Wiler I believe?), a book about options, one on futures, a few more here and there.

    I am reading Mastering the Trade right now (about halfway through), and have the encyclopedia of technical indicators on its way from amazon.

    I have spent a great deal of time working out kinks, like the custodial accounts, age of majority, brokers, and ways to earn money for my trading account and/or living expenses so I can concentrate on trading while I'm in college.

    I have decided to start with TradeKing (Zecco has been terrible in processing my account application - well over a month - so I just canceled it and decided to go with a better-named and company-backed broker). Then, once I have enough set aside I think I may program a trading system, although I need a set way to make more money before I can invest in the $100 fee and the higher commissions.

    I've also had problems with my finances. I expected to have a clean $1500, but gas prices and car problems have knocked it down severely. I want $3500 for college, and currently have $3600. I expected to make $1500 this summer, but my boss has knocked down my hours to only about 10 a week (worst businessman I've ever met, I practically manage that place myself). So, I'm stuck with the constant problems both finding money and spending my time studying the markets.

    I have also tried paper trading simple candlesticks, support/res, RSI, etc., but I'm barely coming out even. It doesn't help that I've decided to do it on the 20 most traded stocks (advice from Jesse Livermore, measured in $$ volume), but I've found myself to be forcing trades. I also know I have a lot of learning left ahead of me, and only two months until college begins. As a result, I have no idea which direction to go in, and I'm just kind of trudging along by reading the last of books I need to read, creating an investing website, finding ways to make money, and trying not to waste any time. Any advice will do! Thanks.

    Setups are something I'm going to begin studying. I set aside about 150 studies in my journal (like measuring the performance of hammers and hanging mans and plenty of others), but there is so much information it's hard to get through them. As a result, I think I may need to focus on the most objective ones, and develop new trading setups and analyze them. I can't even find resources to measure my ideas. I've applied to stockwire for backtesting, but that was over three weeks ago. I don't know what to do!
     
    #11     Jun 17, 2008
  2. Focus on learning from people like Livermore and Richard Wyckoff, price and volume. Market Profile also works well. A big warning these are not easy quick buck methods. They take a lot of time and practice to learn.

    The problem with all of those indicators like RSI, MACD, etc are they are all derivatives of price. As an experienced and successful trader told me can't use Variable A, past price, to predict variable A future price.

    Focus on proper money management. Make sure your trade set ups show positive expectancy.

    This a marathon not a sprint. It will probably take you years to make money. Do you have the patience for that? As Holy Grail mentioned don't bother risking a dime until you can't consistently make funny money. The market ain't going nowhere.

    Remember this, good trading is very boring, you sit back and wait for asymmetrical opportunities.

    Lastly spend your time on learning about you, your strengths and weaknesses. Trading psychology will make or break you.

    What's realistic? Try not to lose money. First you lose, then you lose small, then you break even, then if you get better make a little bit more consecutively. Good luck

    Post Edit: Look up Holy Grail's thread on PnF it's a solid method too and it's free to learn.
     
    #12     Jun 17, 2008
  3. jtnet

    jtnet

    marketing your method and selling it is more lucrative, just ask timmy

     
    #13     Jun 17, 2008
  4. Trader psychology and management are not problems for me. I am a natural manager, and make great decisions. The only downside is in sacrifice I only process small amounts of info at a time, so I'm a bit of a slow learner. As for psychology, I see no problem there either. I like eating foods I dislike, force myself to take schedules that bother me (for working out and stuff), and shot even par after fasting for two days (for no reason other then to teach myself determination and focus). I see neither of those to be problems, but I am open-minded and always improving myself

    I will analyze setups for the next few months after I finish reading and develop a few.
     
    #14     Jun 17, 2008
  5. The best goals for an 18 year old are to get a hot girlfriend and do well in school. Sorry I couldn't resist.

     
    #15     Jun 18, 2008
  6. good swing or intraday trader can make 10-20% per month.

    Regards

    Baldur
     
    #16     Jun 18, 2008
  7. LT701

    LT701

    the one thing you have to get in your head is that nobody will ever be able to answer that but you

    this is NOT a gig with a salary, an hourly wage or and average earnings - you're off that map
     
    #17     Jun 18, 2008
  8. I know those will be my priorities. But I think I'm doing quite well outside trading. I've kept a 4.0 throughout high school without practically lifting a finger, I have enough for my first year and am developing an investing website which I hope (long shot but I think I can do it) can cover my private expenses throughout college (only about 3 grand a year I need really). As for number three, I'm not doing all that badly so far.

    However, I know it is hard for me to juggle all these concerns. I figure I have 15 hours of classes per week in college, another 15 studying, and I have enough not to need a job during the school year. I have no other avid hobbies anymore (market took the place of golf for the most part), so I can hit 10 hours a week of market/trading during college, while still leaving time for weekend partying and girls. This can be studying or learning, and, if I have enough proven setups, I can just plug the orders and a few stops and let it ride.

    As for this summer, I'm accepting no less than 4 hours per day in the market, with the remaining time going to my website or these forums.

    I would appreciate any experiences anyone else had while trading in college and/or just beginning to trade in general. Thanks for your help!

     
    #18     Jun 18, 2008
  9. YoungOne

    YoungOne

    Before you even consider going live. First try to be consistent in simulator trading. At least a few months. Reading all those books won't do you half as much good as just staring at the market day in and day out. Dump the indicators. All you need is price and volume. You will most likely lose your 1500 and prob more. As far as your monetary goals, make it to not blow up. If you make anything first year, you are very lucky. Best of luck to you.
     
    #19     Jun 18, 2008
  10. I will simulate trading and be very cautious, of course. I will set strict guidelines on losses so that, once they are hit, I will stop trading live and maybe go back to testing my setups on dozens of stocks/options/futures back in a paper account.

    My current problem is with backtesting, however. I can't find a good program that is in my price range, which admittedly is also not that high. I've tried stockwiz but I haven't gotten any replies from my subscription sign-ups, forum posts, nor customer service emails. As a result, I have no access to backtesting. Where can I do this? Thanks!
     
    #20     Jun 22, 2008