Am I suited to investing?

Hi guys and girls,

Ever since I can remember I have known that I am different. I never really quite fit in at school with everyone else. Their belief systems and my belief system didn't quite match up.

My parents officially splitting up was the catalyst behind me starting to question life itself. Questions that often would begin with "why".

I started experiencing an out of touch with reality kind of thing. I felt depressed, suicidal and even went through self-harm.

All this happened throughout high school. I really only started to get better when I left high school.

I did a few courses at TAFE, never completed one properly, I'd either withdraw or fail just one subject (subconciously perhaps maybe I was afraid of success).

Anyway, this January I started working in my first real job in electrical engineering, basically I don't think I am suited to the 9 to 5 daily office grind. I'm 21 and my doctors have finally decided that I have bipolar disorder.

The Myers Brigg personality test indicated that I am an ENFP (idealist champion) type person. To be honest, I don't believe I have bipolar, but that I'm just a person who is much more intuitive, sensitive and inquisitive than most.

Anyway, my perception of trading is that it's very much a game of psychological warfare against your own mind.

My skills:
- good saver (I save on average $200 a week into an account that does not get touched)
- willing to learn and a quick learner
- humble
- asks good questions
- makes decisions quickly but also can modify them if new information is available

My weaknesses:
- is somewhat hesitant to 'pull the trigger'
- sometimes makes an analysis of the situation too quickly

I am someone who thinks a lot, and can be a bit fiery towards issues that are close to my heart. I have read a lot of self help psychology books, never finishing one completely, rather I read to get the information required. This may also be a weakness, as it's hard to get a general understanding with only bits and pieces.

I'd like some of your thoughts on whether it's possible for me to be a good trader. By good I mean consistently generate at least $5000 net a week. I would like to position trade or intraday trade the options or futures markets.

I'm willing to learn and apply your suggestions as to what can make me a better person as well as a better trader/investor.

Share your ?

How long have you thought about being a trader ?

You would need a bankroll of more than $200,000 to consistently make 5xgs a week without risking your capital and even then there are no guarantees.

It took me seven years to realise daytrading was not for me. You have to live with the screen. Miraculously I did not lose, had some shocking individual losses but some spectacular lucky wins to even it all out. My accountant freaked. But in my second last year of it gained 80%. Since going to fundamental investing I can now sleep at night and forget the computer as I wish.

But to just jump in, have a very big think. There are many very good traders here on ASF so soak it all up for a year or two and see.

Tech A and julia enter the room shaking their heads

Pancakes are good but greasy ones? I have my doubts. Heaven help us. I`d start with a good psychologist first, it would be money well spent.

Where do people get the idea that trading shares/futures/fx/cfd/options etc will generate thousands of dollars of profit consistently, with no risk and a minimal outlay of capital? If it was this easy we will all be billionaires.

Huitzii said:

Tech A and julia enter the room shaking their heads

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Pixel follows hot on Elvis' heels, both leaving the building in a dead heat.

Your original question was "Am I suited to investing", But then in your post you only talked about trading. There is a big difference between the two, before you start you should learn the difference.

I recommend reading a book called the intelligent investor by Benjiman Graham, And also watching every warren buffett speech, interveiw and documentary you can find on youtube.

Explode is right Trading is a mugs game. focus on investing rather than speculating.

explod said:

How long have you thought about being a trader ?

You would need a bankroll of more than $200,000 to consistently make 5xgs a week without risking your capital and even then there are no guarantees.

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Explod, $5000 p.w. is $260,000 p.a. You reckon a capital base of a bit more than $200,000 is going to generate that much? From a beginner?

greasy_pancakes said:

Anyway, my perception of trading is that it's very much a game of psychological warfare against your own mind.

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Your thread title asks if you are suited to investing.
Now you refer to trading..
Do you see these two terms as being interchangeable?

You don't provide any idea of your intended capital base from which you plan to generate the $5000 p.w. What percentage return do you anticipate being able to achieve?

Tysonboss1 said:

Explode is right Trading is a mugs game. focus on investing rather than speculating.

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This is an interesting comment.

I am too new to trading/investing to have a valid opinion on this.

Why do you think that Tyson?

Do others here agree?

Twiddle said:

This is an interesting comment.

I am too new to trading/investing to have a valid opinion on this.

Why do you think that Tyson?

Do others here agree?

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No. Don't worry about Tyson he is just being a troll

However, I do think it's very easy to get that impression - trading does seem to attract more than it's fair share of mugs, so you could therefore interpret it as a mug's game!

professor_frink said:

No. Don't worry about Tyson he is just being a troll

However, I do think it's very easy to get that impression - trading does seem to attract more than it's fair share of mugs, so you could therefore interpret it as a mug's game!

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I am actually a bit offended that you have called me a troll, I don't feel that my post was trollish. I simply suggested that their was a big difference between trading and investing and he should learn the difference because it is a very important thing to know.

Tysonboss1 said:

I am actually a bit offended that you have called me a troll, I don't feel that my post was trollish. I simply suggested that their was a big difference between trading and investing and he should learn the difference because it is a very important thing to know.

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For the record this was what I was commenting on:

Tysonboss1 said:

Trading is a mugs game. focus on investing rather than speculating.

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Maybe think a little about what you say if you don't want to be criticised in the future

greasy_pancakes said:

I'd like some of your thoughts on whether it's possible for me to be a good trader. By good I mean consistently generate at least $5000 net a week. I would like to position trade or intraday trade the options or futures markets.

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Crikey! Simply asking such a question raises concerns.

Twiddle said:

Why do you think that Tyson?

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Because Trading is much more akin to gambling than it is to Investing. Traders make money through share price speculation, they hope to make money by second guessing the market and make assumptions on what the share price will be hours or days later, this is pure speculation.

Investing is the opposite of trading, an investor looks to the asset itself to generate the return over time where traders look to other traders hoping some one will come along and pay a higher price in the short term.

http://www.youtube.com/watch?v=LH03WyBpgjU&NR=1

Watch this video from the 1 minute mark, warren does a much better job of explaining it than i do.

Tysonboss1 said:

Explode is right Trading is a mugs game. focus on investing rather than speculating.

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Aren't investors just long term traders who are too proud to use a stop loss

jersey10 said:

Aren't investors just long term traders who are too proud to use a stop loss

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Spot on.

jersey10 said:

Aren't investors just long term traders who are too proud to use a stop loss

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Nope, Not all .

I hold MTS , have done for years , First buy was around the $2.40 mark, i have added to this over the years on varios market dips etc . it proovides a nice income stream via divvies and is a solid growth company which i dare say i will add to again when or if the opportunity arrives ...

again i say not all