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References for a 17 year old looking to get into Day Trading?

Discussion in 'Business, Careers & Education' started by David Wilson, Jul 9, 2011.

  1. whacked

    whacked Well-Known Member

    Messages:
    7,364
    Joined:
    Sep 24, 2006
    Are you unfamiliar with the huge change in the way that trading works at the institutional level? Between the volume and regulations, it's not possible to simply scale up retail investment work.

    Aside from working at one, I guess not.

    Look, excuses are just that... excuses. Liquidity has grown by leaps and bounds the point where $10M+ blocks would barely leave a dent in most markets; not to mention at that level we're talking top producers at large funds. In any case, if your strategy is so great (EASY 15% IRR just from writing vanilla options), I'm sure there are ways to take your talent to the bank.

    Come on, you can double your money/net worth/portfolio every 4.9 years EASILY... why waste your time on SF?
     
  2. NameBack

    NameBack Well-Known Member

    Messages:
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    Oct 4, 2010
    
    I always thought it was notoriously hard to get in on a hot IPO? I like econ but I'm quite ignorant when it comes to finance. I, in my ignorance, would happily buy Zynga or Groupon or Livingsocial or whatever other over-hyped social-tech companies are about to go public, and flip them at the end of the day. I always was told this was basically impossible to do for individual investors, though?
     
  3. javyn

    javyn Well-Known Member

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    Mar 15, 2006
    I hear that too. I was buying on the secondary market. My broker (Fidelity) offered to get me in on the IPO for Yandex, but I wouldn't have been allowed to sell for 15 biz days. I said no thanks, I'll wait and buy it myself in a few mins heh.

    I made 10% on all the IPOs I traded except Pandora, where I took a little bit of a loss.

    Yes, I know that's nuts, and no, I don't normally, and would never normally do shit like that. But....what was that you were saying in another thread about making money off peoples' irrational expectations?
     
    Last edited: Jul 19, 2011
  4. Steve9999

    Steve9999 New Member

    Messages:
    1
    Joined:
    Jul 24, 2011
    I’ve been day trading for about two and a half years while working a “real job” full time, and I’m on the verge of being able to make a living at it. Most people fail at trading because they don’t realize how much time and effort it takes to become consistently profitable. You should plan on needing at least two years experience of trading everyday until you can become successful. The problem is that you have to find a method that fits your personality, learn it, and at the same time get the discipline required to implement it.

    Here’s my guide for the new wanna be day trader.
    For the new trader I would recommend learning price action. Buy the book “Reading Price Charts Bar by Bar” by Al Brooks. On his website brookspriceaction.com he has daily analysis of the S&P e-mini and links to his webinars. Read his articles in Futures Mag as well. Spend a few weeks studying, then start a forex account trading 10 cent pips off of the 10 minute chart. Forex is too choppy to trade off the 5 minute chart. Do this for several months, refilling your account after you blow it as needed. Then move up to 1 dollar pips. Keep this up until you stop losing money and more importantly, stop making retarded, emotionally driven trades. After you feel confident enough, open a futures account for $5000 and start trading 1 contract on the Euro futures and the S&P e-mini off of the 5 min chart. When you are consistently making money and you take your account up to $8000, start trading 2 contracts. Keep adding a contract every 3 or 4 thousand. At this point you have gotten your bachelor's degree from the traders school of hard knocks. Unlike new graduates from traditional schools who are unemployed and deeply in debt, you should be making about $150 per contract, per day. Then move to Europe were you can trade currencies at normal hours and spend the rest of your life trying to get as rich as possible.
     
  5. Quadcammer

    Quadcammer Well-Known Member

    Messages:
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    Joined:
    Jul 10, 2010
    
    The var on naked options is significant. But I've found consistently impressive returns by writing naked options on a handful of stocks that I know well. They tend to be stocks that have substantial volatility within a certain range. Especially around earnings, the premium is abnormal on strikes that are miles away from the current price. I'm talking $100 away in both directions on $300 stocks. That said, hell yes it can be risky. I got boned last year when the SEC announced its investigation of GS the day of options expiration. Luckily I was able to take ownership and the stock came back nicely. You pays your money and you takes your chances...but day trading will only make your b/d rich
     

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