Stocks first - then derivatives?

[Twiddle]

Hi All,

I am currently reading "The business of share trading" by Leon Wilson. So far it looks to be an excellent book.

Here is my dilemma:
I am much more attracted to trading something with the ability to go long and short, and trading intra day. (This book is not about that, but I figure any knowledge is good to have and it seems like a good starting point)

The general advice in this book and that I have found other places is; Start with stocks first, then when you are experienced move onto the derivatives.

From my (limited) experience so far, it seems to be easier to pick short term trends and with money/risk management in place it seems intra day trading would be the least risky. This however is contrary to most advice I have come across.

So, in your opinion, is starting with derivatives and intra day trading a no no until you are an experienced stock trader?

Or can it be done if you have made the proper preparations?

For example, demo trading for a long time, starting with a mini account, gaining a comprehensive knowledge of everything involved through research, risk management etc...

Are there any forum members here who started off with derivatives?

 

[Timmy]

The general advice in this book and that I have found other places is;

Most of the advice you receive in this game is from failed traders, maybe had a good run once (confusing brains with a bull market etc.). Not saying all the advice you receive will be rubbish, just most - so you gotta use your brains and some common sense.

Or can it be done if you have made the proper preparations?

For example, demo trading for a long time, starting with a mini account, gaining a comprehensive knowledge of everything involved through research, risk management etc...

How to be successful in anything ... do the preparation, do the work, learn your stuff (brains and common sense).

Share trading/investing will suit some, not others.

Have a look at spot FX too - popular starting point, but again you will need to do your research so you know what you are up against.

 

[Timmy]

Here you go - this guy has gone from poker into options. Probably an extreme example, but an example nonetheless.

Trading firms put their money on poker experts
http://articles.latimes.com/2010/may/16/business/la-fi-poker-traders-20100516

What It's Like To Work With Chris Fargis, A 30-Year Online Poker Player Who Just Picked Up Trading Last Year
http://www.businessinsider.com/chri...aign=Feed:+businessinsider+(Business+Insider)

 

[Twiddle]

Here you go - this guy has gone from poker into options. Probably an extreme example, but an example nonetheless.

Trading firms put their money on poker experts
http://articles.latimes.com/2010/may/16/business/la-fi-poker-traders-20100516

What It's Like To Work With Chris Fargis, A 30-Year Online Poker Player Who Just Picked Up Trading Last Year
http://www.businessinsider.com/chri...aign=Feed:+businessinsider+(Business+Insider)

That is interesting.

Although it provides another way for the media and trading detractors to conflate trading with gambling.