Just the beginning

[Klueless]

Hi all, I have not begun trading yet, just looking for some information first, hope this can help disspell some of my wifes issues with trading , look forward to gaining lots of information about this world of trading . Dan

 

[Tysonboss1]

Re: Just the begining

Hi all, I have not begun trading yet, just looking for some information first, hope this can help disspell some of my wifes issues with trading , look forward to gaining lots of information about this world of trading . Dan

What are some of your wife's issues,

Are you planning on trading or investing.

 

[Klueless]

Re: Just the begining

The biggest issue she has is the possibility of loosing alot of money and how this can be minimised, I would like to get ito trading as investments are being managed by a firm for the long term, this is just looking to see if I am able to do this myself and possibly stop work to focus on studies with a reasonable income.

 

[Tysonboss1]

Re: Just the begining

this is just looking to see if I am able to do this myself and possibly stop work to focus on studies with a reasonable income.

how much capital would you be managing?

 

[Tysonboss1]

Re: Just the begining

The biggest issue she has is the possibility of loosing alot of money.

Well, that is definately a very strong possibility for a beginner such as your self. So it is fair for her to be concerned if you are going to take a decent chunk of money and engage in some highly speculative trading operation.

 

[IFocus]

Re: Just the begining

The biggest issue she has is the possibility of loosing alot of money

Likely out come, happens a lot even to the experienced and successful.

I would like to get ito trading as investments are being managed by a firm for the long term, this is just looking to see if I am able to do this myself and possibly stop work to focus on studies with a reasonable income.

Trading tends to be sold by snake oil sales type promoters as being easy and part time.

Reality tends to be that trading is an all or nothing scenario demanding total focus, good psychology and correct behaviors there are exceptions of course depending on method.

Expect for the learning to take some time and the current environment is not conclusive to steady returns.

Good luck

 

[Wysiwyg]

Re: Just the begining

Not a lot of people trade stocks or trade stocks successfully and the reason why is because they don't understand how to manage the risks. Stocks are very risky vehicles to jump into.

 

[LiL_JaSoN]

are you looking to invest or trade?

 

[pixel]

Re: Just the begining

The biggest issue she has is the possibility of loosing alot of money and how this can be minimised, I would like to get ito trading as investments are being managed by a firm for the long term, this is just looking to see if I am able to do this myself and possibly stop work to focus on studies with a reasonable income.

What makes you think Trading is easy?
If it were so, wouldn't everybody chuck in their job and start trading full-time?
As regards "focus on studies" - IMHO you've got it back to front: You need to study "trading" as a multi-discipline full-time profession before you can start trading for a living.

All successful traders that I know - as few as there are - have spent years in an apprenticeship, got a grounding in Accounting, Statistics, Financial Management, plus a few insights into the industries they wish to trade shares in. And then they work hard and long hours in order to earn a living.

It is true that a successful career in any of those fields can cut the time it takes to pick up the required skill set. That is why people in their "mature years" approaching retirement may have a head start.

Correct me if I'm wrong - but you do not sound like a fifty-something who would fall into that category.

Some traders, who have a "natural talent", may survive the initial years with their capital still intact; breaking even after a year or five and then deriving a "reasonable income". If they have to worry about losing money, they may not have enough capital to start with; or they will succeed making a small fortune out of a big one.

By far the majority, however, will have "done their dough" and dropped back into the jobs they came from - assuming those jobs were still available.

 

[Julia]

Re: Just the begining

All successful traders that I know - as few as there are - have spent years in an apprenticeship, got a grounding in Accounting, Statistics, Financial Management, plus a few insights into the industries they wish to trade shares in. And then they work hard and long hours in order to earn a living.

I understand what you're saying here, but would suggest a 'grounding in accounting, statistics and financial management' is absolutely not a requirement for making decent money from the market.
I'd say a substantial capital base is more important than this, if the aim is to make a living from the market. Quite obviously it's going to be easier to generate an income from $1M than $100,000, unless the trader is exceptionally skilled.

The OP has not advised what capital base he/she has in mind. Klueless?

 

[tech/a]

Very true and very wise Julia.

Trading for profit is very easy if you are looking for 20 % on a million and damned impossible if ( on a consistent basis ) you want to make 200 % on $100k.

 

[nulla nulla]

Re: Just the begining

The biggest issue she has is the possibility of loosing alot of money and how this can be minimised

Sounds like you have been married for long enough for your missus to know there is a risk letting you loose with the family fortune Risk assessment/management is a key to succeeding in trading as is money mnagement.

I would like to get ito trading as investments are being managed by a firm for the long term this is just looking to see if I am able to do this myself and possibly stop work to focus on studies with a reasonable income.

This implys that you are old enough to have accumulated investment funds which are invested with an Investment Firm. From this I gather you are not a student starting out so your desire to study is something you may have wanted to do for some time but haven't had the time or means to go back to?

Stopping work to "focus on studies and having a reasonable income from trading" is a contradiction in that:
1. Trading is a full time occupation;
2. Stopping work to trade requires a capital base that allows you to "trade" and "live"; and
3. Trading requires a commitment of time which leaves little for focusing on other "studies".

"Trading" is also a very sweeping definition. Some people in here trade in "currency markets", others trade "futures", others trade "CFD's" and some just trade the ASX shares. And some confuse trading with buying shares and sitting on them for long term gain.

You may need to learn more about "what" and 'how" you want to "Trade" before risking your hard earned capital.

 

[tech/a]

Nulla
I don't know about your 3 points.
(1) i trade a large portfolio without full time devotion
(2) I also trade an account which could support me but also run a fair sized company with other projects onthe boil without problems.
Infect when you know how to do something( most anything) the actual time taken to be involved successfully isn't as time consuming as you think.
Trading/investing is quite boring.

 

[johenmo]

Re: Just the begining

...would suggest a 'grounding in accounting, statistics and financial management' is absolutely not a requirement for making decent money from the market.

Agree with that. It requires a mindset/attitude which is different from the norm. Plenty of books about that.

I'd say a substantial capital base is more important than this, if the aim is to make a living from the market. Quite obviously it's going to be easier to generate an income from $1M than $100,000, unless the trader is exceptionally skilled.

Even if not making a living from it, the more you have the better you are able to manage risk re position sizing.

 

[IFocus]

Nulla
I don't know about your 3 points.
(1) i trade a large portfolio without full time devotion
(2) I also trade an account which could support me but also run a fair sized company with other projects onthe boil without problems.
Infect when you know how to do something( most anything) the actual time taken to be involved successfully isn't as time consuming as you think.
Trading/investing is quite boring.

Tech you do all this after how many years in the market?

After how many hours of market method study?

I still remember was it Stock Central.............

 

[tech/a]

Bloody you've been around a while Focus!

It was 5 years of the 17 I've been doing this.
Lost $20 k in my first year.
Point is you don't have to devote your life to trading to get there.
Sure it took me many years to know this but I can pass it on.