Stock Trading

[SFRL]

I want to start exploring Stock Trading. 

I found a Stock Trading simulator to practice some first. 

Does anyone have some basic advice? 

[LifeLine]

You can look up Timothy Sykes, he has a whole program that is actually very informative, you might be able to become a millionaire student. Is Penny Stocking though.

[SFRL]

29 minutes ago, LifeLine21 said:

You can look up Timothy Sykes, he has a whole program that is actually very informative, you might be able to become a millionaire student. Is Penny Stocking though.

Thanks I will look into it. 

[jse]

55 minutes ago, STC said:

I want to start exploring Stock Trading.

So, what attracts you to this difficult endeavor?

[SFRL]

30 minutes ago, jse said:

So, what attracts you to this difficult endeavor?

Making money 

[jse]

17 minutes ago, STC said:

Making money 

If that is your driving force, then you are guaranteed to fail.  To be successful in this industry, you need to be driven by the kind of focus and serious passion that put a man on the Moon.

Unfortunately trading is not a zero-sum game - you have to be in the top 10% in terms of performance just to break even  over the long term.  You also need to be 100% systematic in order to replicate your system(s) backtesting and work out your risk exposure, and you also need the conviction and nerves of steel to follow through.  In order to be in the top 1% (and average a measly 10-20%pa at reasonable risk levels), you need to put an incredible amount of time and effort into never-ending R&D.  And you need serious capital - forget the bs about 100%+ pa returns with little or no starting $.

I've been trading for almost 20 years, have developed countless trading systems and backtesting platforms for almost 500 clients, and currently trading major futures (forget penny stocks).  I put in an avg 80 hrs/week into systematic (AI) R&D, and I'm currently in the long and expensive process of setting up a Caymans-based fund.  If I knew from the beginning how difficult and time-consuming this profession turned out to be, I would've definitely invested all my time and effort into something far easier and more productive.

[SFRL]

3 hours ago, jse said:

If that is your driving force, then you are guaranteed to fail.  To be successful in this industry, you need to be driven by the kind of focus and serious passion that put a man on the Moon.

Unfortunately trading is not a zero-sum game - you have to be in the top 10% in terms of performance just to break even  over the long term.  You also need to be 100% systematic in order to replicate your system(s) backtesting and work out your risk exposure, and you also need the conviction and nerves of steel to follow through.  In order to be in the top 1% (and average a measly 10-20%pa at reasonable risk levels), you need to put an incredible amount of time and effort into never-ending R&D.  And you need serious capital - forget the bs about 100%+ pa returns with little or no starting $.

I've been trading for almost 20 years, have developed countless trading systems and backtesting platforms for almost 500 clients, and currently trading major futures (forget penny stocks).  I put in an avg 80 hrs/week into systematic (AI) R&D, and I'm currently in the long and expensive process of setting up a Caymans-based fund.  If I knew from the beginning how difficult and time-consuming this profession turned out to be, I would've definitely invested all my time and effort into something far easier and more productive.

Thanks for your reaction. 

I don't see it being difficult as a reason not to try. Nothing ever happens in the comfort zone.

I have heard the same thing in my career; people would not have taken up the profession if they knew how much time and effort goes into it. I have heard people claim the same thing about other careers. But I don't complain.  

What I am interested in to know more about is that systematic approach you are talking about and those terminologies you use. 

[mostly harmless]

Timothy Sykes is a fraud. 

Trading stocks requires a minimum of 100,000 $ if you want to live from it. 

Forex trading is more simple to start with smaller capital. But it is the same with the amount you need to live of it. But stocks often have per order cost and require order sizes so that you can only apply risk management if your total capital is big enough. An alternative to trade stocks with smaller accounts are CFD. http://www.investopedia.com/articles/stocks/09/trade-a-cfd.asp (there are annoying pop-ups on that page, sorry)

It is a difficult profession. You need to understand your psychology and develop discipline. 

 

It is critical that you select a broker who does not work against you. One that seems to stand out positively is https://www.jfdbrokers.com I cannot vouch for them, I am not a client of JFD because I don't have the money or time to trade at all at the moment. If I would trade, I would most likely trade with JFD.

You can find info on forex trading at fxstreet.com and babypips.com and a forum at forexfactory.com 

If you'd be willing to spend on trading systems and (more important) education, then 2ndskiesforex.com would be an option. It is run by Chris Capre who is very passionate about trading. I have bought a course and have therefore access to the course forum. It is very very active. There are many other people there. If you're serious about trading and willing to spend a few hundred $ then you can learn something there. It will probably save you a lot of money.

Here's a recorded webinar with Chris Capre 

Feel free to ask if you would like to have a few more links to specific questions.

 

 

 

Edited February 1, 2017 by mostly harmless

[Principium Nexus]

You might consider looking into crypto currency like bitcoin. Start only with a small amount and learn what trades are psychological and fundamentally. Put lots and lots of time in technical analysis, buy low and sell high

EDIT: Start with max 20 dollars and see how far you come in the next 3 months. Just trade as if it were 2000 dollars

Candlestick patterns, Fibonacci retracements, proper understanding when the market is overbought and underbought (Stoch RSI) are very important to make good entries and sell at the right points. There are some educational videos on youtube about this stuff but it's really the basics to even earn something without "gambling". Timeframe and interval are also important always look what the bigger picture is doing and than zoom in on smaller timeframes. The 23.6% retracement is the best entry with lowest risk.

Also make sure there is enough liquidity and volume if you trade cryptocurrency otherwise you will have to wait long for your sell/buy order to complete and the price will not be very volatile and significant.

You will need this:  http://seekingalpha.com/article/198381-four-looks-at-the-psychology-of-market-cycles

Edited February 2, 2017 by Principium Nexus

[Consept]

Im not usually negative when people want to do something and in this case id still say try for yourself, but... Trading in stocks is very time and money consuming esp with something like day trading. If youre looking for long term investment its not that bad but in terms of trying to make a regular income it is hard, you do have to be in the top 10% and it can take years to do that with a lot of losses in that time. 

There are better options out there to make money online if you look around google. Also in terms of giving value to the world it doesnt fulfill you at all. If i did it i would invest in someone who knew what they were doing to advise or even join a fund. 

Not saying it to doubt you or anything but i would really look at all the options before you spend time on this. 

[Nahm]

@jse I have had a very different experience. I looked up companies that were making the parts for tablets and cell phones. I chose 11 companies. I've average 17% return for years. Zero maintained even. And just a thought for you, add insurance. Get your P&C and L&H licenses, get an agreement from an independent insurance agent, or start your own. With your 500 clients, a 50% close rate which is conservative since you're just multilining existing clients, in a year you should be able to write 500 auto, 250 fire, and 200 life policies. (Average household 2 cars, 1 fire, 1 or 2 life). This would give you a residual / reoccurring revenue of about 150,000. And then you have referral opportunities from many product angles. Reinvest that capitol into rental houses / apartments. In a few years you won't have to work anymore. 

[jse]

Thanks, @Phil - the only insurance that is of interest for me at this stage, is based on non-duality/awareness matters.  

[Nahm]

@jse nice one man!

[Key Elements]

Did anyone invest from the inside? 

[jse]

6 hours ago, John Flores said:

...and don't trust anybody unless they have many years of experience and tell you things in whispers.

  (Psst... Invest in yourself, a simple life)

[Hsinav]

On 2017-01-26 at 7:53 PM, STC said:

Does anyone have some basic advice? 

I would say it is easier to make money becoming a good online-poker player, pretty much the same psychology behind it but just easier. The effort you put in if you are serious about it will probably pay of sooner.

[Nahm]

@John Flores Isn't there a sort of paradigm at play with the philosophy of be happy no matter what? Takes a while to build momentum where it switches from choosing or reminding yourself or practicing being happy no matter what,   - To it being your default state of mind. Once it is the default, progress in all directions happens easily without resistance. Not being mindful of being happy regardless of circumstances is holding resistant thought, which slows all progress. Being happy leads to being happy. Probably the most amazing thing I have seen or experienced is that reality itself is and always was filtered by me. There is nothing objective 'out there'.

[InfinitePotential]

"The Little Book That Beats the Market" gives a perfect investing strategy for someone who doesn't want to put too much effort into it but still get very good returns.  Best bang for your buck.  You could spend a ton of effort looking into current events and trying to predict future trends to MAYBE do a bit better than the book's strategy would have you do, or you can put almost no effort into it and get great returns via the strategy.