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Trading and Stocks are good to learn to make money?

Discussion in 'Business & Tax Advice' started by msuper28, Sep 4, 2014.

  1. msuper28

    msuper28 Power Member

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    Hey guys, I'd like start learning trading and stocks, but are they very good to learn to make some money in today economics? I've read many books about maths, warren buffet books, entrepreneurs books in last months.. I'm currently a computer engineering student but I see I really like investments, finance, marketing etc
    I tought I could go on basic MBA degree after I finish computer engineering, but I think I can learn more about finance and stocks myself
     
    Last edited: Sep 4, 2014
  2. wizard04

    wizard04 Elite Member

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    They are also good at loosing money.
    Stocks are not easy as you think they are. People with PhD have hard time predicting the how they will grow or fall.
     
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  3. msuper28

    msuper28 Power Member

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    Yep, I know. So do you mean people with MBA too aren't good at trading? Warren buffet did only practice in stocks he didn't get any degree..
     
  4. wizard04

    wizard04 Elite Member

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    I don't say it is impossible, like there are talents in every job/sport there are talents in stock market also.
    I am trying to say stock trading is addictive and you can lose lot of money in a seconds, stocks and casinos are the same thing.
     
  5. msuper28

    msuper28 Power Member

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    This is why I'm working atm with IM and computer programming. I know these kind of jobs can be stressful but they are for long term income and safer. Trading is for low term income and can be addictive if you want money fast. I'd like to study some things people study at MBA programs just to know better how finance and business works.
     
  6. wizard04

    wizard04 Elite Member

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    Good luck OP, I do think you'll do good...just don't get in to it for the quick $$.
     
  7. everythingred

    everythingred Jr. VIP Jr. VIP Premium Member

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    You're statistically going to lose money as a day-trader. Investing in companies for long-term growth is the way to go but you won't see huge profits in a short time, it's for the long haul down the road. Read more Warren Buffet books and save your money for now. Open an account on Investopedia and start a game and invest extremely strictly, not speculatively in order to gain experience. Lastly, I'd recommend for the market to come down, it's a speculative market and most stocks are overpriced so there isn't much room for them to grow.
     
  8. JamesPat

    JamesPat Registered Member

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    I don't think when it comes to retail stock trading .. institutional education can give you much of an edge. Ofcourse .. the right education matters .. but not just an mba or phd.

    The most important thing is a traders mindset .. it takes many years to developed one if you don't already have it. If you are good at mathematical & statistical modeling along with programming .. then try statistical arbitrage or statarb. Otherise when learning trading the old bar to bar way .. don't think your mba certificate will make you money.

    Just a few mins ago .. ecb cut bid rate 0.10% and Euro is freefalling across the board. Nobody saw that coming .. only experience will save you on there situations .. not a certificate.
     
    Last edited: Sep 4, 2014
  9. Nut-Nights

    Nut-Nights Jr. VIP Jr. VIP

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    Buying stocks withour or less knowledge is like killing yourself with rod.
     
  10. NoirHat

    NoirHat Regular Member

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    people spend SOOOO much time trying to the best in the world at analyzing and predicting the direction of a trade.
    When the important part is learning money management, risk management and how to deal with fear and greed.

    good trading rules for entries and exits are everywhere
     
  11. Magic5

    Magic5 BANNED BANNED

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    Its a high risk game with stocks anything can and does happen you have to be super switched on to make good decisions.
     
  12. msuper28

    msuper28 Power Member

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    Thanks for replies, all good advices, I always remember this rule from Warren Buffet:

    Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.
     
  13. Tytus

    Tytus Regular Member

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    You have advantage of being a programmer. There are few trading software which allow you to test your strategies.
    I wouldn't play without tasting it at first.
    I've played futures contracts (daytrading) and I lost.
    After that I was study this subject.
    Now I have knowledge and no moeny to invest ;).
    Although if I would start again I would play with futures contracts (swing trading), forex (day trading).
    Stock market is too slow. If you really want to play stock market than ETF would be much better options (look for Connors book).
    If you decide on futures trading (swing trading) I would recommend Connors&Raschke book,
    and everything you can find from Connors.
    If you would like to play forex (day trading) than I would use fibonacci method.
    I don't remember names but can look for you if you would like to know from hwo you should learn.
    Stay away from options until you will have results with above investments.
    There are many strategies at a tons of garbage. But to know what's good you have to taste in bad to ;).
    A MUST is to get and to go through EVERYTHING from Van Tharp. This guy will save your ass.
    It can be boring but once you understand it you will no regret that you spend so much time study it.
    I wouldn't go to any school to learn it. Everything you need is online.
    As I mentioned earlier you should test your strategies.
    There are some software which you can use.
    MQL4 is language for MetaTrader. I think that the software is expensive and language is quite difficult to learn.
    Better option (better because the price and learning curve) is Amibroke ($200)-language AFL. You can try free version.
    I don't remember what you'll get in payed one but free one allows you to analyze everything you want.
    As for platform I've heard from traders that for "small" players Interactive brokers is the best platform.
    I think you can integrate Amibroker to it. The only issue is that you need at least $10 000. So for beginners may be to much.
    Better option would be to start with other platforms.
    If playing with other platform don't play daytrading because they have a big spread.

    If you need some more info on specific subject let me know.
     
    Last edited: Sep 4, 2014
  14. wizard04

    wizard04 Elite Member

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    This is not a fight club, there are lot of rules bro.
     
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  15. I-marketer

    I-marketer Power Member

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    Trading and investing are two different things. From your post, I'm not sure if you know the difference, but you should if you read books.
    Investing is what Buffett does. Trading is what you see in movies (wall street, boiler room) and is good for dummies. Most people think it brings "quick" cash. But the opposite is true.
    Keep reading, OP - I recommend "The most important thing" (just search it on amazon). And Buffett's letters to shareholders. Always read books from pro investors. Not academics or traders.
     
  16. msuper28

    msuper28 Power Member

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    Thanks man, If I'd make more money with IM, I'd spend for investing in companies like warren buffet do (long term), trading is for dummies you're right but I think higher risk..
     
  17. eggplantparm

    eggplantparm Newbie

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    I wouldn't rely on stocks for fast income unless you want to spend some serious time reading, learning and doing tons of trial and error. Being a day trader that actually makes money is not simple.

    Instead, I would suggest using it as part of your retirement portfolio through mutual funds and index funds. As I still have 29 years till my target retirement I allocate around 50% of my retirement savings to growth mutual/index funds(half high risk funds and half low risk funds) and then 25% into precious metals and 25% into a liquid account/cash.

    If you are intent on pursuing stocks as your income then i would start off by readingbook called The Intelligent Investor by Benjamin Graham. It's an old book but it provides invaluable information and is still suggested as reading material by most professionals.
     
    Last edited: Sep 7, 2014
  18. wallstreetque

    wallstreetque Newbie

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    You have to know what you are doing. I trade full time. the key is to learn from someone who is already do it. I day trade, futures and forex. I make money whether the market is going up, down, or sideways.
     
  19. Nicheblogger

    Nicheblogger Regular Member

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    Stocks are a great way to make money. I used to trade full time with no degree or training other than reading about it on forums. It can be very stressful if you get too much money into it, but it sure can be fun. The best way to get going is to start playing around with very small trades and gradually spend a little more. I was always into trading sub pennies and microcaps because I like to make money fast, but the risk is much higher.
     
  20. IAlwaysWin

    IAlwaysWin Junior Member

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    Great way to make an extra living either full time or part time.