Advice for beginner
Firstl things first my names Dylan, Im 18 years old and im keen on investing in the financial markets. My plans to go to uni to study finance and financial economics, then hopefully get into prop trading. Ive read quite a few books on trading, have a basic understanding of technical analysis and i plan on using the depth of market display during intraday and daily trades (i know this can be done for futures, not sure on equities?)
In terms of online brokers, so far im thinking of using bell-direct or cmc markets. i may need to use leverage to buy stocks and futures as ill only have $2000 or around there, when I plan to start trading, however this can be very risky, what are your thoughts?
Ive started doing paper trades and so far so good. I plan to invest in a few companies, buying & selling every few days for short term gains, but i might not have to money to make it worth while doing daily trades when the costs are taken into consideration, so im also looking at medium-long term investments (1 year+) as well. ill also like to maybe hedge my portfolio using the asx200 or the e-mini S&P, however this will require a decent amount of capital, thoughts?
basically my goal in entering the financial markets is to gradually diversify my portfolio and to make decent capital gains in the next few years to give me a chance at getting into prop trading and to also further my great interest in the markets.
thanks in advance and I look forward to learning and eventually contributing to the ASF!
Firstl things first my names Dylan, Im 18 years old and im keen on investing in the financial markets. My plans to go to uni to study finance and financial economics, then hopefully get into prop trading. Ive read quite a few books on trading, have a basic understanding of technical analysis and i plan on using the depth of market display during intraday and daily trades (i know this can be done for futures, not sure on equities?)
In terms of online brokers, so far im thinking of using bell-direct or cmc markets. i may need to use leverage to buy stocks and futures as ill only have $2000 or around there, when I plan to start trading, however this can be very risky, what are your thoughts?
Ive started doing paper trades and so far so good. I plan to invest in a few companies, buying & selling every few days for short term gains, but i might not have to money to make it worth while doing daily trades when the costs are taken into consideration, so im also looking at medium-long term investments (1 year+) as well. ill also like to maybe hedge my portfolio using the asx200 or the e-mini S&P, however this will require a decent amount of capital, thoughts?
basically my goal in entering the financial markets is to gradually diversify my portfolio and to make decent capital gains in the next few years to give me a chance at getting into prop trading and to also further my great interest in the markets.
thanks in advance and I look forward to learning and eventually contributing to the ASF!
CanOz
Home runs feel good, but base hits pay bills!
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Re: advice for beginner
Well 2000 AUD is peanuts, really. That might last you a month trading CFDs...
Why not spend that money on a copy of Amibroker ($250), learning how to code and writing a few systems so you're learning about R:R, Drawdowns etc., before risking any money in the markets...
CanOz
Well 2000 AUD is peanuts, really. That might last you a month trading CFDs...
Why not spend that money on a copy of Amibroker ($250), learning how to code and writing a few systems so you're learning about R:R, Drawdowns etc., before risking any money in the markets...
CanOz
Sean K
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Re: advice for beginner
Welcome db94.
Sounds like you've already got some decent plans and basic understanding of trading and/or investing.
Are you sure you're 18?
All the best.
kennas
Welcome db94.
Sounds like you've already got some decent plans and basic understanding of trading and/or investing.
Are you sure you're 18?
All the best.
kennas
Garpal Gumnut
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Re: advice for beginner
All the best db94.
Go back on old ASF posts under the various headings/threads.
Particularly around volatile times.
There are behavioural elements to bull and bear markets/events.
gg
All the best db94.
Go back on old ASF posts under the various headings/threads.
Particularly around volatile times.
There are behavioural elements to bull and bear markets/events.
gg
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Re: Advice for beginner
Remember that leverage magnifies the losses just as much as the gains.
Protecting your capital, especially since you will not have the income to grow it too quickly for a few more years, is something you should really focus on.
best thing to do is practice and trial anything you plan to do on the market. A missed opportunity is generally easier to overcome than a real bad trade.
Congrats are looking towards your future at such a young age. At 18 i had my head too firmly into what ever sci fi book was closest
Remember that leverage magnifies the losses just as much as the gains.
Protecting your capital, especially since you will not have the income to grow it too quickly for a few more years, is something you should really focus on.
best thing to do is practice and trial anything you plan to do on the market. A missed opportunity is generally easier to overcome than a real bad trade.
Congrats are looking towards your future at such a young age. At 18 i had my head too firmly into what ever sci fi book was closest
Re: Advice for beginner
Just had a look at this an it looks great thanks. Will try the free trial an see how I go
I'm certainly 18, what makes you doubt my age lol?
Thanks for the advice will definitely read over it
Thanks for the advice. I've always been very interested in trading since a young age but only since about a week ago I really stuck into some books. Normally I laze around watch movis and maybe go to the gym
Well 2000 AUD is peanuts, really. That might last you a month trading CFDs...
Why not spend that money on a copy of Amibroker ($250), learning how to code and writing a few systems so you're learning about R:R, Drawdowns etc., before risking any money in the markets...
CanOz
Just had a look at this an it looks great thanks. Will try the free trial an see how I go
I'm certainly 18, what makes you doubt my age lol?
Thanks for the advice will definitely read over it
Remember that leverage magnifies the losses just as much as the gains.
Protecting your capital, especially since you will not have the income to grow it too quickly for a few more years, is something you should really focus on.
best thing to do is practice and trial anything you plan to do on the market. A missed opportunity is generally easier to overcome than a real bad trade.
Congrats are looking towards your future at such a young age. At 18 i had my head too firmly into what ever sci fi book was closest
Thanks for the advice. I've always been very interested in trading since a young age but only since about a week ago I really stuck into some books. Normally I laze around watch movis and maybe go to the gym
skc
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Re: Advice for beginner
Get your priorities right. You have $2k. Say you earn 100x on that it's only $200k.
Study hard at uni and get a job at an investment bank as a trader and you can make $millions - with other people's money.
It's a much better bet (assuming you want it bad enough).
Get your priorities right. You have $2k. Say you earn 100x on that it's only $200k.
Study hard at uni and get a job at an investment bank as a trader and you can make $millions - with other people's money.
It's a much better bet (assuming you want it bad enough).
skc
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Re: Advice for beginner
I bet you there are more investment bank traders out there who make $1m+ than there are prop traders.
(Although we have no way to verify this bet... so it's a thought exercise only)
I bet you there are more investment bank traders out there who make $1m+ than there are prop traders.
(Although we have no way to verify this bet... so it's a thought exercise only
)
CanOz
Home runs feel good, but base hits pay bills!
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Re: Advice for beginner
I guess the easy days are over, is what i meant. The banking industry has been and still is cutting allot of jobs.
McLovin was highlighting this on another thread somewhere too...
CanOz
I bet you there are more investment bank traders out there who make $1m+ than there are prop traders.
(Although we have no way to verify this bet... so it's a thought exercise only
I guess the easy days are over, is what i meant. The banking industry has been and still is cutting allot of jobs.
McLovin was highlighting this on another thread somewhere too...
CanOz
Re: Advice for beginner
Thought exercise:
10 year US Treasury tick value of US $15.625 trading 100 lot is obviously $1562.5 per tick (with negligible commissions being prop) that means one would have to capture a wopping 3 ticks in a days trading to clear the 4k mark (Before profit split) and 3 ticks is not a difficult thing to do.
But not to derail; don't go to uni unless you have a specific career that is the only thing on this earth that you want to do. Otherwise it's all just debt and unfulfilling work. My 2c.
I bet you there are more investment bank traders out there who make $1m+ than there are prop traders.
(Although we have no way to verify this bet... so it's a thought exercise only
Thought exercise:
10 year US Treasury tick value of US $15.625 trading 100 lot is obviously $1562.5 per tick (with negligible commissions being prop) that means one would have to capture a wopping 3 ticks in a days trading to clear the 4k mark (Before profit split) and 3 ticks is not a difficult thing to do.
But not to derail; don't go to uni unless you have a specific career that is the only thing on this earth that you want to do. Otherwise it's all just debt and unfulfilling work. My 2c.
prawn_86
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Re: Advice for beginner
Totally disagree. There are many people out of work in fiance who already have degrees and experience. If you dont have a degree what hope do you have of competing against them.
3 - 4 years at uni also expands your social and professional network which will be very useful to you down the track
Totally disagree. There are many people out of work in fiance who already have degrees and experience. If you dont have a degree what hope do you have of competing against them.
3 - 4 years at uni also expands your social and professional network which will be very useful to you down the track
Re: Advice for beginner
Through the application of skills my good man! I can go anywhere in Australia at present and pick up great paying work not from the paper but from specific skills and at present am doing what I love with trading and next month that may or may not be taken further.
And yes I have done the uni thing and chose not to pursue my field because of blatant loathing of the work (I did science not finance lol).
Through the application of skills my good man! I can go anywhere in Australia at present and pick up great paying work not from the paper but from specific skills and at present am doing what I love with trading and next month that may or may not be taken further.
And yes I have done the uni thing and chose not to pursue my field because of blatant loathing of the work (I did science not finance lol).
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Re: Advice for beginner
You got no chance getting a interview and past the HR/recruiters for most senior and higher jobs that make a degree mandatory. Unless you got that paper or some paper nobody will listen to what you have to say.
You got no chance getting a interview and past the HR/recruiters for most senior and higher jobs that make a degree mandatory. Unless you got that paper or some paper nobody will listen to what you have to say.
Re: Advice for beginner
Definitely, but what kind of senior higher jobs are we talking about?
Chances are, they're ones I don't want in the slightest and Db94 said he wants to trade prop so I'll make the assumption he prob wouldn't be interested either.
Definitely, but what kind of senior higher jobs are we talking about?
Chances are, they're ones I don't want in the slightest and Db94 said he wants to trade prop so I'll make the assumption he prob wouldn't be interested either.
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Re: Advice for beginner
Do you mind if I ask what you do boofis?
Do you mind if I ask what you do boofis?
Re: Advice for beginner
At present its lots of trading whilst maintaining and trying to develop 3 other business ventures, 2 of which are primary industry. and i love it!
At present its lots of trading whilst maintaining and trying to develop 3 other business ventures, 2 of which are primary industry.
and i love it!
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Re: Advice for beginner
A uni degree is a foot in the door. It's true there are still some jobs in the big IB's that don't require them, and I'd include trader/sales-trader in that, but generally you will hit the big brick HR wall without a degree.
IME, very few know what they want to do at 18. At least with a uni degree, you can keep your options open. No one wants a 30 year old grad.
Aside from that, university is not vocational training and is worthwhile. It makes you think differently, IMO.
A uni degree is a foot in the door. It's true there are still some jobs in the big IB's that don't require them, and I'd include trader/sales-trader in that, but generally you will hit the big brick HR wall without a degree.
IME, very few know what they want to do at 18. At least with a uni degree, you can keep your options open. No one wants a 30 year old grad.
Aside from that, university is not vocational training and is worthwhile. It makes you think differently, IMO.
Re: Advice for beginner
to be honest I wouldnt mind working at a prop shop or for an investment bank doing trading (although i know that they can trade very differently), ill apply for both when im at un and afteri and see what happens. Ill stick to doing finance at uni as itll allow me to further understand the markets (i hope) and also develop social skills, mature more and to give me a better chance of landing a trading job. For the time being I think ill try and save some decent money, read up more on trading and then start to trade. whats an amount of money that's reasonable and worth while?
to be honest I wouldnt mind working at a prop shop or for an investment bank doing trading (although i know that they can trade very differently), ill apply for both when im at un and afteri and see what happens. Ill stick to doing finance at uni as itll allow me to further understand the markets (i hope) and also develop social skills, mature more and to give me a better chance of landing a trading job. For the time being I think ill try and save some decent money, read up more on trading and then start to trade. whats an amount of money that's reasonable and worth while?
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