How Difficult is it to Trade?

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Old Sep 6, 2008, 12:56am   #17
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Joined Feb 2007
It should be easy.. LoL

check out the freshman (Trader mag)

He trades. He helps run an endowment. He's 14.

Most kids his age pass their time playing Wii, posting on Facebook or checking out the latest hilarious cat-on-a-treadmill video on YouTube. Christopher Davis prefers studying 10K's.

Sharing the same the name as (but no relation to) a famous money manager, this 14-year-old Florham Park, New Jersey, *resident might well be on his way to running his own fund. He trades his own account, and has an advisory role helping to steer the endowment at Newark Academy in Livingston, New Jersey, where this fall he'll enter the ninth grade.

This precocious trader got started at age 11, when he bought a handful of shares of his local thrift, Peapack-Gladstone Bank, with money he had saved. Since then, he's up more than 90 percent on his personal principal, and still holds those shares of Peapack. "They have very few non-performing loans and pay a nice dividend," he says of his first investment.

In 2002, Newark received an anonymous gift of $100,000 to its endowment to be managed by students. Sam Goldfischer, the school's business manager, oversees the student-run pool, whose investments are restricted to low-cost Vanguard mutual funds. Davis helps set the asset *allocation. "Christopher is one of the more active members of our Student Endowment Committee," Goldfischer says. "He often shows up to my office to discuss *investment ideas with the Wall Street Journal in his hand."

With Davis's input, the student-run fund was up 4 percent in the first quarter of 2008, following solid returns of 13.7 *percent in 2007. In addition to helping burnish the student-run portion of the school's endowment, Davis sits in on *meetings of the school's formal investment committee (which is run by adults).

"I keep them on their toes," he says. "It's fun showing up at meetings and being introduced alongside members of the class of 1948."

Like the other Christopher Davis, the freshman follows value-investing principles -- but his true inspiration is his father. "I guess what I do has rubbed off on Christopher," says Paul Davis, who manages portfolios for high-net-worth clients at Oppenheimer and Co. in New York. "We often talk about trading ideas at the dinner table."

The younger Davis's best play to date? Buying Nokia in the teens and selling in the 40s. As for the market in general? "I think it's going to be crazy until the election," he says. "But I have a long time horizon. I'm only 14."
Stops are 4 buses
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Old Sep 13, 2008, 2:38pm   #18
Joined Feb 2007
How difficult is it to trade?

It depends on what you understand about the markets and how profficent you are in using your understanding in terms of the application. That's how difficult it is.
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Old Sep 13, 2008, 11:16pm   #19
Joined Aug 2008
Hi all - Adding a few cents ............

The new chaps must also know that:-

1) A good brokerage MUST and HAS to be painstakingly chosen. My criteria is that if a player is into a certain Spread Trade or Futures / CFDs, then she/ he has to look out for the necessary edge ( say, in terms of for eg. Brokerage A gives a tighter SPREAD than B or A gives a lower commission quote than B ) and possible BETTER Next Day quote ( even better if there is no carry forward trade fee or charge for commodities futures ). - Leading to lower starting costs and overall lower Risks Factor! The history of the brokerage and the Total Holdings of Monies ( including Paid Up Capital ) it has is Very very Important - there are sooo maannyyyy online ones having gone bust, giving the public no clue why they go ............... !!! Some brokerages are just Fronts for Money Launderers who would have no qualms about closing Business once their plot is discovered!

2) Lowest Possible Fees/ Charges Factor - LPF/CF ( the lowest it is achieveable, the better the rating of the brokerage will be ). Brokerage A might be giving a no carry over fee for its Spread Trade/ Bet or Contract! Which is not possible for CFDs, but highly likely for Spread Trading. There are also the concern for stamp duty and tax for CFDs and others like FO ( future options ).

3) Discipline and Money Analysis/ Management - BOTH control GREED, which is a MAJOR SIN! For those of you, who do not play FOREX ( FX for short ), it is good to know what is the brokerage's requirements ( USD or GBP - even other currencies like Rupees or Yuan ). For latest info, USD is up at 1.79 against 1 GBP and that will probably strangthen even further!

4) Using Tools like FA, TA, RA and also the many others of the Whole Kaleidescope of Methodologies! A good Open Source like the Open Office suite ( as Excel is expensive considering the cost ) would prove useful for normal buggers like you and me.

5) Consider the 95 % losers and 5 % even or profit-winners stats! Awful, but true! Nature - is such, a cold and grim world!

6) Balancing your personal costs and your earnings/ profits - again thrift is the Word! Being a money pincher can be a gain for the new chap, what with the rising cost of energy, food and travelling .......... and perhaps Time ( in terms of opportunity costs ).

7) So, One Important Last Point, if you find that you can't handle the Adrenaline Flow and the Stress, then Stop ( not just inputing the STOP LOSS ) ......... really just stop and retrace! A good gambler does not only try NOT to stay after a major win, he also stop if he can't win! Most, spread traders / betters have the uncanny ability to think and act like gamblers! Time to Stop That as well!

8) To sum up, even if you can get through the said 7 points, you must have a Back Up Plan as well! In the good old days of Trunk line accounts trading, the bookmakers and the brokerages are making small profits unlike the modern technological age, whereby the Internet has brought the Online Gambling Dens ( Casino ) and the Brokerages to the House together with the temptation and the ease of looking at the informational data ( which are mesmerising to some, but crap to those who know! )
8.1) Back Up Plan means what do You Do When You can't trade - it's like a way back out of the game if you find it unsuitable!
8.2) Also applies to the Plan that what if the Internet Fails ( a good recent eg. would be the LSE that crippled FTSE index spread trade/ bet for a few hours due to glitches!

So, the IT IS EASY TO TRADE, but ................. it is not for any, but the few 5 %!



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Originally Posted by Paul71 View Post
How difficult is it to trade?

It depends on what you understand about the markets and how profficent you are in using your understanding in terms of the application. That's how difficult it is.
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Old Sep 20, 2008, 12:57pm   #20
Joined Jul 2006
Trading is essentially easy.

All you need to do is identify repeatable events, patterns etc. and use them to your advantage.

Patience is required in bucket loads and a good measure of self-discipline won't go amiss either.

But, in essence, it is not a very difficult pastime to excel at.

I think a lot of the failure arises because people look for difficulties and problems where none actually exist.

Strip away all the crap, keep it simple and you will see it for what it is.

Quite easy really.
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Old Oct 22, 2008, 8:58am   #21
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Joined Jan 2006
Personally the hardest part about trading is NOT trading. Avoiding that temptation to get in when you think it's a "banker" but doesn't fit in with your trading strategy.

I find these are actually my worst trades and it's taken me a long time to learn to sit on my hands.

Outside of a dog, a book is a man's best friend,
inside of a dog, it's too dark to read. -- G Marx.
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Old Oct 22, 2008, 10:52am   #22
Joined Jul 2006
Yes, impulsiveness can be a problem so the emphasis must be on maintaining rigid discipline at all times.

Get your wife to whack you over the head with a baseball bat every time you make an impulse trade.

You will soon become disciplined.
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Old Oct 22, 2008, 11:12am   #23
Joined Nov 2001
Once you have yourself sorted out it's not difficult, at all. Getting rid of the phobias and temptations is the difficult part.
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Old Oct 23, 2008, 1:01am   #24
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Joined Nov 2004
Making serious money from any type of business is as easy as falling off a log, any fool can do it but most dont have the psychological makeup or willpower to do what it takes.

Trading however is just the most ridiculously difficult way to make a living known to mankind. Doing what needs to be done will probably cost you your health, your relationships with family, friends, partner etc, a substantial financial sacrifice in terms of loss of earnings, and possibly even your sanity.

Dont say I didnt warn you
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