Where should I start???

Discussion in 'Trading' started by Sharp, Jul 8, 2002.

  1. Sharp


    Hello everyone.

    I guess I am the newest member to Elite Trader. I have been reading the post for a couple of days now so I decided to sign up and ask my question. Here goes.

    I am very new to the trading arena, but not the stock market. I have been a financial planer for the last year. (Series 6 not 7) I just became sick of cold calling people all day long to try and make money by selling them on the fact that I know what to do with there money. In my opinion no one should use financial planners (only an opinion). Anyway with my refusal to cold call I found myself unable to meet my monthly quota for new accounts. For this reason I was, let’s just say temporarily let go.(Who Cares!)

    I have been reading many books about trading and what I have found is that even with my knowledge of the stock market I have no idea of how to trade stocks. I have been learning so many new things it blows my mind.

    I want to start trading. Right now I will do it full time until I go back to work in a couple months. I would eventually like to trade full time, but I know that I have a long way to go before I reach that point.

    My question is where do you think I should start? Let me say this, I have $5,000 I am going to put in a trading account. I know that this is not much but it is all I have for right now. I could margin that amount to 10,000 dollars but then I would be limited to trading only 3 times per week. Or I could just trade my cash and trade as much as I want, (remember I am not working).

    I want some open opinions. What should I trade? Stocks? I am really not sure if $5,000 is enough to trade stocks even though that is my area of strength. Options? Really not my strong area but I can learn fast. I know a guy who trades options and does very well. I don’t know him well enough to have him help me out. Futures? I have heard this might be the way to go because of my account value but I really do not have much futures knowledge, may be some could help me out.

    I mean this $5,000 dollars is just some play money and I want to use it to trade. What should I do to get started? I only ask these questions because I have read many books and I feel that none of them get to the point about how much money is needed to trade. I mean I have heard $25,000, $50,000, and much higher. But all I have is $5,000. Does this mean I should not even try to trade? Now you know how much money I have so you could probably give me some great ideas. Anything helps. I want to try and be successful like everyone else on Elite Trader.:D :D :D Tell me the good and the bad. I am ready to listen and learn.

    Thank in advance, Sharp

    P.S. You guys who trade for a living ROCK! I wish I could be like you.
  2. your whole goal should be to last long enough to learn the game.(in this market probably a year).forget about making money.
    open an account at ib and trade tiny until you know how the game is played.
  3. Sharp


    I have a question about IB. Around a year and a half ago I had an account with Datek. I only had $700 in the account. I know, Ha,Ha,Ha. (I had no clue what I was doing but it was fun. I lost the all the money in about 2 weeks.) Anyway, with that account I traded as much as I wanted. 6, 7, 8, 9, 10 times per day. Once I closed a position out the money was available in my account to trade again.

    I was reading on IB website and they have a thing that stats with cash account you have to wait three days for the trade to clear before the funds will be available to trade with again. Is this for real? If that was the case how could I trade with IB? I would either have to margin my account and only trade 3 times per week. Or trade my cash and only be able to trade once per week. Is this really how it works at IB? Anyone only trade a cash account at IB? If so does it really take three days for the trade to settle and put your money back in your account?
  4. those rules apply to all brokers now.thank your government.you will have to start trading longer term at night while you work during the day to get enough money to trade with.
  5. chisox

    chisox Guest

    my options mentor once said.....throw it against the wall and see how it feels...hang in there and use good sense! good luck


    I would say stocks. Margin your account to 10 large and try to swing trade with a 1-3 day time frame.
  7. i'll never forget the wise words a grizzled wheat farmer told me, back in my commodity broker days:

    "tradin's a lot like farmin'...gotta know what the hale yer doin."
  8. TAguru5



    You are likely to get a lot of different responses, and I thought I'd offer you my story since I'm living proof.

    I started trading this past June with $6,800. Even though I've read many books on the stock market and was at one time a broker, I was in the same boat as you in that I didn't know how to actually trade the stuff I once peddled. Unfortunately, I still don't, but I feel like I'm improving everday.

    I realize a lot of folks won't agree with this, but my advise to you would be to find a site that not only makes specific recs but also teaches you how to do it on your on. There are many out there. I personally use momentumstockplays.com which is geared 100% towards technical analysis.

    Rather or not you can make a go of it is entirely dependent of what your needs are. Me, I don't need much. Since I placed my first trade the beginning of June, I've turned $6,800 into $10,300 so far...small potatoes but not bad in my opinion. I also use Datek
  9. Sharp


    How many trades do you make using that site? Per day, per week, whatever.
  10. Magna

    Magna Administrator

    Not bad indeed, more like exceptional. That's better than a 50% profit in about a month....and on Datek no less. Hell, you should be teaching everyone else! :eek:
    #10     Jul 8, 2002