What should I do?

This is a discussion on What should I do? within the First Steps forums, part of the Reception category; I just recently got interested in investing and the stock market and what should I do if I want to ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Sep 18, 2005, 4:27pm   #1
Joined Sep 2005
What should I do?

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

Iím 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
epic767 is offline   Reply With Quote
Old Sep 18, 2005, 10:44pm   #2
Joined Aug 2003
What should I do if I want to trade for a living?
Forget it.

Complete your graduate & postgraduate courses.
fudgestain is offline   Reply With Quote
Old Sep 18, 2005, 11:18pm   #3
 
Racer's Avatar
Joined Jan 2001
Quote:
Originally Posted by epic767
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
Racer is offline   Reply With Quote
Old Sep 18, 2005, 11:37pm   #4
 
roguetrader's Avatar
Joined May 2003
Quote:
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
__________________
It is fatal to enter any war without the will to win it.
roguetrader is offline   Reply With Quote
Old Sep 19, 2005, 3:14am   #5
Joined Sep 2005
epic767 started this thread 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 is offline   Reply With Quote
Old Sep 19, 2005, 3:17am   #6
Joined Sep 2005
epic767 started this thread 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 is offline   Reply With Quote
Old Sep 19, 2005, 3:26am   #7
Joined Sep 2005
epic767 started this thread 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:P 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.
epic767 is offline   Reply With Quote
Old Sep 19, 2005, 11:43am   #8
 
roguetrader's Avatar
Joined May 2003
Quote:
Originally Posted by 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 =)
What type of trading has captured your imagination? Trading what, and in what timeframe?


Quote:
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.

Quote:
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.
__________________
It is fatal to enter any war without the will to win it.
roguetrader is offline   Reply With Quote
Thanks! The following members like this post: Bluebelle
Old Sep 19, 2005, 2:36pm   #9
 
bullcar's Avatar
Joined Sep 2005
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
bullcar is offline   Reply With Quote
Old Sep 19, 2005, 2:47pm   #10
Joined Sep 2005
epic767 started this thread Roguetrader: I havenít 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 donít exceed the amount of premium you get.

And you invest in slow moving shares anyway, so even if it devalues, it shouldnít 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 is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)