I have came to understand that it is good that there are swindlers out there who manage to divert investors into losing their money : we need as many bad traders as possible, and to keep these people into the market we need people willing to lose a fortune.
OK, any good books/articles that you would recommend to read for coming up a good strategy? Or you suggest any kind of good way? I can do programming and create trading program but my math/stats knowledge is nothing special so I don't come up with any outstanding strategy.
You are asking for three sets of books. Group A deals with information Group B deals with how your mind works. Group C deals with the programming. Since I am writing books on this I will post three attachments After I go to a computer now in repair (monsoon electrical failure took out the computer guts.) that will allow be to do acut an past on the three bibliographies you will require. Iright now our place has verious technicans and power people reconstructing things.
I only need "Group A deals with information" XD LOL. By the way, there are so many kind of information that can be processed, like price, volume, GDP, interest rate and so on...what should we process? And what time frame do you believe having much better chance to have good earning? Interday or Intraday? Hold for days, weeks, months!?
Thread TL & DL I say no degree other than you are smart enough to learn everything about finance yourself and understand how the industry works. But if you must, I'd say a finance degree helps because it provides you with the background and theory necessary for you to jump right in with less catching up. A person who is totally green or who studied something else at uni will have to learn all this by themselves, such as all the terminology, how to read financial statements etc. So a degree will give you this background right away. But it can also give you biases because clearly stock prices are driven by sentiment and momentum and money flow, more so than the fundamentals more often than not, hence why "the market can stay irrational longer than u can stay solvent". Stubborn people who short based on "fundamentals" often get steam rolled because of this. "oh but AAPL is so undervalued and XYZ stock is 200 P/E so I'm shorting" then next day XYZ gaps up another 20%... "man so overvalued so I'm doubling down!". I think in this modern age, a math or statistics degree will help too. You can approach trading with mathematical or statistical models to look for correlation and find trading strategies. These are much more advanced than mom and pop style buy and hold of what you know. This is rigorous statistically backed trading plans and what some of the top quant hedge funds use. Then I think a computer science or programming experience can help with algorithmic trading. But before you can do that you still need a trading plan. Just being able to program something isn't helpful at all if you don't have the trading plan. I don't think you really need advanced degrees except if the work or techniques you have used in those fields of study can be directly implemented in the trading plan. For example if you did machine learning work for your robotics research, you can probably apply that to your algo. Also, I've been around people with advanced degrees and one common thing I notice personality-wise is most of them are very confident in themselves (not in a good way) and are very linear thinking. I don't think these are particularly good traits of a human trader because it will often lead them to be stubborn too thinking they have everything figured out and they are the smartest in the room; and the last thing you need is to be stubborn in a losing trade. Unless they use this personality into developing an algorithm then that is helpful because an algo sticks to a trading plan and their skills are in programming a robust algo and their personality helps them get the job done (job being the programming or the statistical analysis). Mostly, I think the super successful traders like billionnaire futures trader John Arnold, etc, have a winning combination of knowledge of the industry, knack of the trade, lots of guts and lots of luck. You don't need fancy education for any of it when you do 1000 lot NG futures and a few minutes later you walk away with 1% gain on the notional that you sell after. They are immediately a lot richer just because they make the right trade.
it seems John Arnold was lucky enough to have access to huge amount of capital which is vital for trading .the fact is that (due to his biography) he did not changed his 5k $ account into billions.he traded billions to make billions .