Just Starting Out

[daytrada 10]

Hi all,

Currently i'm a sophomore at James Madison University. I have always been fascinated with economic issues and have always excelled at math. Currently I am a double major in Quantitative Finance and Mathematics at the university. Since my major courses have not set in full swing i became too anxious to learn the market and have taken a personal approach to it. Every morning, night and time between classes and homework i research the market. I try to be as broad as possible in hope to find trends and become readily familiar with what i see, but is often hard for me since i am very speculative. I purchased and am currently reading a few investment books, but have never received schooling on the matter. I currently multiple virtual accounts that i manage along with an actual account with very little money (poor college kid) that i hope to day trade with for experience. At this point in time i value the experience i will gain by trading and losing money to the value of the money itself. I am a very ambitious person and will not stop learning until i have mastered the subject. I have looked around this website and feel that it will greatly increase my knowledge and passion for investing. Thank you all in advance.

[zdo 20]

Go directly to GoldmanSachs. Do not pass Go. Do not collect $200.

[zdo 20]

daytrada,

Seriously now ...

I get the impression you have a real fire in your belly for this stuff.

Where do you see yourself 5 years from now?

What is your vision of the type of trading you see yourself doing then?

 

zdo

[daytrada 10]

zdo,

 

I will be truthfull that i initially became interested in the market in pursuit of wealth. Being the kid of a single mother who has worked hard her whole life to get me to where i am has put a fire in me to never want to feel financial struggle in my adult years. When i started college i was technically a math major, but really undecided as the theories of high level math still frustrate me. I decided that it was time for me to make an effort for my future and declared my double major with quantitative finance, which is regarded as one of the tougher majors the school offers. In my life i have always been able to learn fast and continue to learn until the task becomes second nature. I feel that it may take years for me to learn this game, but i am confident i will. Currently, I have set a goal to attempt to make half of my college loans back before i graduate. I know it is a high goal, but i feel it could be possible as that total will be around 20k and i have 3 more years. I do not see myself in just one area of the market, as i am becoming more familiar with bonds, etf's, mutual funds, etc. but right now i do not have the starting capital to really profit from these markets. Along with investing i have taken a big interest into real estate, i have worked summers doing landscaping and contracting so i love to work on things, and if i could get my hands on a good deal for a foreclosed house i would much rather take that path first then throw all my eggs into the basket of this market with future volatility in mind. I have had an internship in production planning for a large company last summer, and expect to intern every summer until i graduate with companies such as the FED which i have received good feedback from. As far as the style of trading goes, honestly i see myself trading in whichever style i am most successful, knowing that my knowledge/ money will change greatly along with the market and the economy in 5 years.

[zdo 20]

daytrada,

 

Thanks.

And yes - whether it seemed like it or not - my questions were about performance goals, not outcome goals.

 

Before it burns out, maybe use the flame from the original fire that was put in you … to start another fire within… re:

...As far as the style of trading goes, honestly i see myself trading in whichever style i am most successful,...

Not making you ‘wrong’ here… but I would suggest that you internally question how you have that framed.

Food for thought - since starting in this business in the mid 80’s, I have seen just about as many ‘go’ as I have seen ‘come’… and the few that didn’t ‘come and go’ ie the few that thrived typically did not use “most successful” as criteria for ‘style’ selection.

This does not necessitate – especially at this stage - that you have a ‘clear vision’,etc. of your ‘style’ at all.

It merely suggests that you fully engage in very explicitly questioning how each way you discover and explore is aligned with your true aptitudes and interests … ‘one’ of these ‘styles’ ( which will ultimately be a self created conglomeration from many ‘styles’) will really be more than worth all the work to you…and give you real staying power…

 

All the best,

 

zdo

[daytrada 10]

When i say the most successful, what i really mean to say is that due to my lack of experience, i could not give you a direct answer to my intended investment style until i have used many and internally decided which one i feel i am best suited to use. On the concept of investment strategies, i would love to get some good info on the different types out there. I am sure there are a ridiculous amount and many variations of each, but could you recommend a good source or book that goes through different strategies and their potential effectiveness in different situations?

[zdo 20]

When i say the most successful, what i really mean to say is that due to my lack of experience, i could not give you a direct answer to my intended investment style until i have used many and internally decided which one i feel i am best suited to use. On the concept of investment strategies, i would love to get some good info on the different types out there. I am sure there are a ridiculous amount and many variations of each, but could you recommend a good source or book that goes through different strategies and their potential effectiveness in different situations?

,

 

daytrada,

 

First, profile yourself

Like -

 

1) I see myself making trades

A by selecting the ‘best’ instruments from many instruments

B by focusing on a relatively small set of instruments

 

2) I see myself taking trades based on

A economic information

B technical information

C ___% of A and ___% of B

 

3) I see myself taking trades based on the

A Fundamental values of an instrument

B Technical worth of an instrument

 

4) I see myself taking trades to capture

A reversion to the (hypothetical

) ‘mean’

B departure from the ‘mean’

C time decay from the occurrence of neither.

 

5) I am most energized by the concept of detecting

A the beginning of (hypothetical

) 'momentum'

B the ending of 'momentum'

 

6) I like the idea of staying in trades for durations of

A minutes to hours

B days to weeks

C ...

 

7)

8)

9)

10)

11)

12)

 

…add more questions to the profile…or start all over with a new profile...

… then take it.

... then post your analysis of your proclivities…

 

Then our recommendations can be more specific, targeted, productive…and caveat have a better chance of being truly helpful instead of dead end or worse...

 

and btw

:helloooo:

if you can't quite drop the consensus 'mercon educational paradigms, then simply just drop this post

ie a good trading education does not look at all like a good regular education

 

Have a great weekend all

 

zdo

[zdo 20]

Some of the benefits of self profiling/understanding are found in

"The paradigm determines the research design"