What should I do?

[epic767]

I just recently got interested in investing and the stock market and what should I do if I want to trade for a living?

I’m currently enrolled in a bachelor of business program with a major in finance and economics. I'm only in my first semester though and have only done accounting subjects. Would it be more beneficial to change the economic major to accounting to get the numeracy skills and the ability to do some good fundamental analysis?

And what benefits comes with doing a postgraduate degree? Should I do a postgraduate degree by coursework or by research at the same time as I'm working for 3 three years, and then apply for a CFA (or anything else?) just to get the edge, since this is a highly competitive market. And what's in your brain is the only difference between a winner and a loser, apart from luck.

What fascinates me is that you are your own boss, and you make money work for you to some degree. The only limit to how much you can earn is your knowledge and the amount of money you are investing. As well as the thrill of never knowing that your money is safe. Yes I believe life gets funnier then there is a bit risk involved and that life becomes boring when everything in your life is predictable.

I'm only 18 years old (and I just moved to australia 3 months ago from sweden) so I feel that I can put my money in high risk investments and change to low risk as I'm getting older.

I'm also planning on devoting 2 hours each day by reading all the tutorials and information and learn it by heart from www.investopedia.com and then maybe branch off into some heavier stuff as the intelligent investor, security analysis and some technical just to see what fits me best.

I would deeply appreciate some help on what decisions I should do

 

[fudgestain]

What should I do if I want to trade for a living?
Forget it.

Complete your graduate & postgraduate courses.

 

[Racer]

I'm only 18 years old (and I just moved to australia 3 months ago from sweden) so I feel that I can put my money in high risk investments and change to low risk as I'm getting older.

I'm also planning on devoting 2 hours each day by reading all the tutorials and information and learn it by heart from www.investopedia.com and then maybe branch off into some heavier stuff as the intelligent investor, security analysis and some technical just to see what fits me best.

I would deeply appreciate some help on what decisions I should do

Unless you have a fortune to start with, why high risk intially if you have only just started?

Read and learn, read and learn and when you think you know it... learn even more.

Good luck

 

[roguetrader]

Complete your graduate & postgraduate courses.

Very sound advice, make sure you have a career potential to fall back on before worrying about the markets, they will be here long after you get that all sorted out.
And in the meantime you can study some on those as well, if you have the time. But I would seriously take care of the degree first, as for changing you course, I presume you picked it as is for some reason, changing it as you have suggested will not improve your chances of success in the market, so if it serves a purpose as it is keep it that way.
Best of luck

 

[epic767]

Rougetrader: Yes I'm definately going to do the degree to get a headstart in the financial market, but as asked before, which major will serve as the best vehicle to improve my future sucess in trades? Which degree and which majors and which postgraduate courses?

Thanks for the advice anyway =)

 

[epic767]

fudgestain: Why should i forget it? Is trading for living so harsh and competitive that one shouldn't think about it unless he has sound knowledge in the area?

 

[epic767]

racer: Well one shouldn't high risk intitally if one has just started but as soon as I get confidence I will start doing that And I might as well start paper trading or use one of the many stockmarket simulators to boost my skills.

I categorize stocks as highrisk investments and bonds as low risk. As you are younger you can afford to lose some money and therefore invest in the stockmarket but as you get older you can't afford to lose it so you begin to put your investment in low risks the older you get(bonds for instance) since your sole income is dependent on the money you have invested.

 

[roguetrader]

Rougetrader: Yes I'm definately going to do the degree to get a headstart in the financial market, but as asked before, which major will serve as the best vehicle to improve my future sucess in trades? Which degree and which majors and which postgraduate courses?

Thanks for the advice anyway =)

What type of trading has captured your imagination? Trading what, and in what timeframe?

Is trading for living so harsh and competitive

It is probably about one of the most competitive things you could do with your money. You will enter an environment where people are queueing up to relieve you of it, quietly, without introducing themselves or laying on some sales pitch to alert you. It is a ruthless business that has left many in financial ruin. Now from the wording and apparent slant of your posts, that probably sounds glamorous to you, but if you end up as part of the majority, rather than the minority, it will soon lose its lustre.

I feel that I can put my money in high risk investments

Well one shouldn't high risk intitally if one has just started but as soon as I get confidence I will start doing that

You talk of "high risk" almost as if it is a badge of honour. I feel you have much reading to do before thinking about entering the market place, traders go to great lengths to minimise the risk they take on at every possible juncture. Risk in the market is an inevitable bedfellow, but not one to romance.

Sorry if it all sounds a bit negative, money is there to be made in the markets, but it is much more likely to be achieved with a more cautious approach to risk than your wording suggests.

 

[bullcar]

Economics will give you a great all round understanding - then take any options to do with trading, derivatives, etc etc.
Actually, i think its great you want to set yourself up properly.
Good Luck
ps: do some real trades even if they are only tiny risk - that way you are already a trader

 

[epic767]

Roguetrader: I haven’t really decided on that yet, but anything that has to do with the stock market such as futures and options.

Options have really caught my attention though, especially the strategy that involves covered calls where you get premium and as a result you can afford to lose some of the value on your stocks as long as it don’t exceed the amount of premium you get.

And you invest in slow moving shares anyway, so even if it devalues, it shouldn’t be a huge decrease, and consequently you will still earn money through the premiums you get, even if you are exercised.

If the shares don't change in value at all, you still earn money, so you really have an advantage. Sure, your profits are limited and the risks unlimited, but it shouldn't be something to worry about if you play your cards right. And some might argue that it isn't worth it because the profits are so low and any unexpected movement in the shares could wipe you out

I would answer that argument with: If you suspect that there will be a huge decrease in the shares you own you can always insure your stocks =)

 

[epic767]

Roguetrader: Sure it is a competitive market, but you make it sound like it's impossible and I get the feeling that you want to scare away aspiring student from joining the party =) But what does it really take to excel in this field?

Good intellectual skills and numeric skills or a solid education or everything just mentioned? Does one have to have an above average IQ? Where are many highly skilled mathematicians who have failed so I don’t really know what to believe(maybe because they didn’t take into account that the market is very dependent of how the human mind works).



I consider everything that has to do with the stock market as a high risk investment, because you can't always predict when the next stock market crash will occur. And the main goal for every trader is to minimize the risks, and I absolutely agree with you that one shouldn’t romance risks.

But when you are older, say 70 years old, and want to retire and your sole income stems from your investments, you can't afford to have your money bound to the stock market, because you will never know when there is another stock market crash.

 

[mickandpete]

If there was a degree in "COMMON SENSE" I would recommend you take the course
There isnt

 

[epic767]

Bullcar: should I major in

1economics and finance
2economics and accountant
3economics and finance

Because I can only major in two fields, so it has to be one of the above. And do you deem that it's necessary to take an MBA if one wants to trade for a living?

Thanks for your input anyway =)

 

[OpenMind]

Roguetrader: Sure it is a competitive market, but you make it sound like it's impossible and I get the feeling that you want to scare away aspiring student from joining the party =) But what does it really take to excel in this field?

Good intellectual skills and numeric skills or a solid education or everything just mentioned?

You need to be of above average intelligence, which I am sure you are. What you really need are:
- Experience
- Mental discipline and humility
- Patience
- A habit of learning from your mistakes
- An optimum mixture of caution and confidence
- A keen nose for managing risks and a good idea of what unmanaged risk can do to you.

 

[epic767]

mickandpete: Well, my thoughts about covered calls might have many faults and naive thinking, but I havn't done any in depth research on covered calls yet, just some thoughts after reading an a4 about it.

 

[epic767]

OpenMind: Good, i was worried that one has to have a really high iq to excel in this field but it seems that everyone of average iq has the same premises-me like that

 

[bullcar]

Bullcar: should I major in

1economics and finance
2economics and accountant
3economics and finance

Because I can only major in two fields, so it has to be one of the above. And do you deem that it's necessary to take an MBA if one wants to trade for a living?

Thanks for your input anyway =)

Just economics. I assume you will have module choices. Thats when to get hot on derivatives and trading.
If you have no capital after uni, you will need to impress a prop firm that will back you. Show them why you chose what you chose was for the sole reason that you were born to trade and they will hire or back you.

++ do some trades, that shows you are a born trader, and you can talk to people as a trader(even if its tiny size) it shows the passion is real .

if you do that contact me if u ever gat to london and i will introduce you to the right people

 

[Bluebelle]

epic

Don't be discouraged by these replies which I feel are all intended to be constructive, it's just that most people have seen so many fall by the wayside in this business and the chances of failure are higher than those of success.

I agree with an earlier poster who said 'experience' was a prime requirement, and one reason posts like yours cause people to worry on your behalf is that there is only one way to get that, although the learning curve can be shortened considerably - and made much cheaper - by working alongside a good mentor.

If I were you, I would address your questions to a company who you think you might like to work for and get a job with them. That way you get to trade with other peoples' money and get a salary as well. You can always strike on your own later when you've got some experience, either totall independently or through an arcade.

 

[epic767]

stock markets are pretty gay, the real money is in real estate

 

[blackcab]

Rofl!!