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

No need for books, just start trading, TOS (Think or Swim) offers virtual trading (fake money). This is the best way to learn. If you are afraid of loosing real money. If you want to risk your money just start trading, and researching companies, invest in what you know.

A lot of people will **** on you for doing it, and a lot of it is accurate. It's still possible. A close family friend makes a lot more bank than most people here by trading options (it's almost impossible with stocks just FYI). That said, our family makes much more than her on entrepreneurship. I'm predominantly in paper, and have been for a few years and have been doing pretty well. The transition to cash has been going smoothly, however. I'm pretty sure that a dude on here makes his living off of the market, and I know another did.

Be prepared to read a lot. Learn as much as you can about stocks and the market in general. A few important links, though:


^Watch all 23 parts. Trade management is where money is made or lost. People who can't do it are the reason that everyone is convinced that you can't win in the market. They just don't know what they're doing. It covers just the basics, but it's enough to give you some idea.

http://masteroptions.com/?cat=3
^What is an option worth is a great, easy to understand, and most importantly, functional explanation of IV. Understanding IV can make or break you with options. IV is actually one of the few arbitrage opportunities available to the retail investor, but that's a much more advanced topic.

Look at investopedia, and read, read, read, read, read. Get yourself a Think or Swim account and trade paper money. Look for blogs on stocks and look at the mistakes other people made. Record EVERY DETAIL of your theoretical trades so that you can learn from your mistakes. Don't bother with technical indicators beyond the MACD and SMA. Neither one is magic, just a quick summary of the info on a chart, which is convenient when your eyes might miss something.

I seriously can't stress enough how much bullshit technical indicators are. The market is super goddamn ******* efficient. You'll learn that the hard way if you try to outsmart guys from MIT with PhDs in math. You make money in the market by not losing money when your educated guess is wrong, not with a half baked financial modeling system.

Read up on human psychology. You're going to be your worst enemy when it comes to trading. Outsmarting yourself, analysis paralysis, biases, etc.

Also, day trading is not the way to go. You probably shouldn't be making more than 10-20 trades a week tops. Fees will eat you, and you won't be able to get to know stocks or industries.

Good luck. READ EVERYTHING. Also, watch the damn videos again. And again.

As a 17 year old, I'd look into writing some JavaScript code for high frequency trading. If you're particularly precocious, I'd set up a ULLDMA algorithm and compete against Goldman. Report back by the end of the week. Models and bottles to follow.

Originally Posted by ramuman

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As a 17 year old, I'd look into writing some JavaScript code for high frequency trading. If you're particularly precocious, I'd set up a ULLDMA algorithm and compete against Goldman. Report back by the end of the week. Models and bottles to follow.
You're not a nice person. I'm actually good friends with the man heading the project that's developing the latest and greatest in high speed data transfer. He said that it's getting to the point where a lack understanding of quantum mechanics is impeding progress for the generation after what he's developing. Most of their buyers are financial institutions, simply because it's easier to be faster than it is to be smarter. /CSB

Originally Posted by ramuman

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As a 17 year old, I'd look into writing some JavaScript code for high frequency trading. If you're particularly precocious, I'd set up a ULLDMA algorithm and compete against Goldman. Report back by the end of the week. Models and bottles to follow.

lol @ JavaScript for trading. JavaScript and Java are not the same thing.

Originally Posted by Sanguis Mortuum

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lol @ JavaScript for trading. JavaScript and Java are not the same thing.

<sarcasm>random pseudo code</sarcasm>

Hgalek, if there is a way for a individual investor to make bank it is indeed with options. That would however involve selling those options as well, again not something I'd recommend for a college student.. The risk from a potential slipup is just too much, and yes a slipup will eventually happen.

I'm curious why no one mentioned FX yet, I'd say the bankroll required for options/futures is way to big for a novice, who'll get eaten alive in the beginning anyway.

With FX he can go down to 1ct/contract. Sure, he won't make any money that way, but I think the mindset is completly different than playing with demo money.

I don't think you can become a millionaire overnight by daytrading, but at the same time i believe it gets a worse rep than it deserves. I make between 1 and 2 grand a month without to much risk/leverage, which is not a lot but a nice little extra cash. You gotta have your head in check, though. This is were most people fail and why daytrading is looked down upon.

Originally Posted by Steve Smith

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It's sucker's game. People sometimes make money at this when the market heads up. They always lose when the market heads down.

If you have the temperament for it (and by that I mean that you are analytical, patient and in control of your emotions) I am 100% sincere in advising that you would be better off learning how to play poker.

But my best advice is this: Learn to paint houses. It's not that hard to do, takes a few hundred dollars of equipment, and you can make great money doing it. People will give you work, partly because they are impressed that a young man is actually willing to work.

+1. I started playing poker at 16 with play money on a few sites. After I turned 19 I started playing with real money and had about 5-6k when I went to university. It paid for my first two years in full. I'm 22 now and debating whether or not I should start day trading, but it seems like risky business. Whatever your decision is, just get your feet wet a little before you dive right in.

Originally Posted by Tony Romo

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Don't do it. In fact, it's not even worth investing to try to make money without at least $100k.

LOL don't know if this is serious, but that is an idiotic statement.

Anyways to answer the OPs question, do not get into day trading. Take it from me. I started investing when I was 17 (I'm 22 now). I started day trading and while I did make a lot of money really fast (pure luck), I lost it really quick as well.

I'd recommend seriously researching the stock market and following it for awhile. Paper trade, read everything you can about the market and then start trading big board stocks. Stocks typically associated with day trading are ones that trade on the pink sheets and OTC BB you don't wanna mess with those. Most are scam companies and are loosely regulated. Stick to the "big board" exchanges with reputable companies. You can still swing trade (or even day trade if you have enough capital) these stocks and make lots of money. When you become more advanced you can learn options and make serious money. With that said, you probably won't take this advice and blow all your money. Goodluck.

Originally Posted by HelloIDistance

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LOL don't know if this is serious, but that is an idiotic statement.

Anyways to answer the OPs question, do not get into day trading. Take it from me. I started investing when I was 17 (I'm 22 now). I started day trading and while I did make a lot of money really fast (pure luck), I lost it really quick as well.

I'd recommend seriously researching the stock market and following it for awhile. Paper trade, read everything you can about the market and then start trading big board stocks. Stocks typically associated with day trading are ones that trade on the pink sheets and OTC BB you don't wanna mess with those. Most are scam companies and are loosely regulated. Stick to the "big board" exchanges with reputable companies. You can still swing trade (or even day trade if you have enough capital) these stocks and make lots of money. When you become more advanced you can learn options and make serious money. With that said, you probably won't take this advice and blow all your money. Goodluck.

Tell me how this is idiotic, and I'll tell you why you're idiotic.

At 17 I would just put a little money into several different stocks and start following them more closely. Keep an eye on their industries and just learn about how their moving and why. Don't dive into daybtrading with no experience and little capital.

Originally Posted by linds_15

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At 17 I would just put a little money into several different stocks and start following them more closely. Keep an eye on their industries and just learn about how their moving and why. Don't dive into daybtrading with no experience and little capital.

You realize he's trying to make money...? How much could he realistically make with just a little bit of money let alone even $10k...

A few friends set up a lawn-mowing service. Hard hours, but they were charging $40/hr and working 40+ hrs a week. They worked their asses off, but got paid well, and had a blast doing it.

Plus, saying you ran your own business looks a hell of a lot better on your resume then "made a few bucks day trading".

Why day-trading? That eats young guys alive. I blew through money doing that when I was 18. I migrated to short-term trading now at 21.

I put some money into a stock with short-term price appreciation/growth potential, hold it for a week/10 days, sell, and pocket some profit. You don't get rich, but you get money for Hoegaarden and new shoes (Or Veuve Cliqcuot and no shoes...but this is SF).