Newbie trader! Theoretic background.

Hello world!

My name is Lucian. I am computer enginneer and i am now finishing a Masters Degree in Finance (focused on research). I also did a Masters in Statistics. My home country is Romania and i am now studying in France.

I saw a lot of the theoretical part of market finance and i would like to do some real trading. What do you propose? I checked out some broker companies in Romania (local or chain - like Vanguard) and they have fees at around 1,3% per trade but they charge a minimum fixed commision per month (10E/month). I don't like that because i don't want to trade every month and i they don't gve me any services for this comission (they should pay me for interest on my money no? kiddin')

I'm waiting for your proposals. My start money is 1000E and i'm open to trading any comodity.

Thanks and have a nice week!
Lucian

p.s: sorry if my english is a bit rusty, but i'm under the influence of speaking and writing in french all day.

With such a small stake you may be best of with forex, or perhaps spreadbeting (if that is open to you). That's a small stake for stock trading and really small for futures.

Are you aiming to use your finance degree for any of this or do you just want to see how real traders think? Bear in mind that the majority of us on this site never touch anything more exotic than a vanilla put!

Sense and brain

arabianights said:

Are you aiming to use your finance degree for any of this or do you just want to see how real traders think? Bear in mind that the majority of us on this site never touch anything more exotic than a vanilla put!

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Of course i want to use all my skills.
Knowing some statistics and market dynamics I can say that charting is a mad man's game. It's luck pushed to the extreme. Yet, i can't prove that it doesn't work. I can prove that on average no one can beat the market.. so everybody tries to take advantages of anomalies,etc etc.

I want to use my skills as an enginner, degree in finace and some of chartist skills.

lucidinbr said:

Of course i want to use all my skills.
Knowing some statistics and market dynamics I can say that charting is a mad man's game. It's luck pushed to the extreme. Yet, i can't prove that it doesn't work. I can prove that on average no one can beat the market.. so everybody tries to take advantages of anomalies,etc etc.

I want to use my skills as an enginner, degree in finace and some of chartist skills.

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If what you say is true then you should stay away from the markets because you are more likely to fail than succeed. Why waste your money competing against the odds.

Hoggums said:

If what you say is true then you should stay away from the markets because you are more likely to fail than succeed. Why waste your money competing against the odds.

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Thanks for the advice. Yet, from my point of view i will be paying for experience, not wasting money. I will not be doing intraday trading at the beginning and I want will be force to make good money management (just because i don't have a lot - i want to trade my own hard-earned scholarship money).

Well it's pretty obvious that the average (by which we mean... mean) case will not outperform the markets... so identify those markets where for whatever reason there are plenty of people who expect to underperform the markets, for example hedgers... and I would say that forex is probably the market with the highest proportion of hedgers V speculators (at a guess anyway)