UK Novice Investor / Trader

[Tinnaz369]

Firstly thanks for checking this out and I look forwards to hearing any advice from the great community on T2W. I will give you a brief introduction to myself, then my motives for posting, what I want to learn and where I want to go.

:smart: I am a student from the North East of England, studying Finance and Investment Management at Newcastle Business School, Northumbria University. I have studied abroad in Lille, France at EDHEC University for one semester and am currently completing a Double Degree course at Kyungpook National University in Korea. :smart:

To be honest I have so many questions in my head, but no clear way to ask them all, so I'm sorry if this post is poorly written . Learning about investment is a long process, some days I feel like I am getting my head around it all, others I do not. So firstly I would ask if there are any books you would recommend which stuck with you and had an influence on your career in the world of Finance?

I have one more year before I graduate and I am interested in setting up some sort of virtual account where I can track my progress and learn trading in real time on the FTSE. Preferably this would be something I would add to my CV and possibly talk about in job interviews because of course I need a job for the spare change I need to go solo ... Is anyone an employer here in the UK, or in a position where they can over advice on this? Is it worth it? Should I open a demo account somewhere or is something like Wall Street Survivor taken seriously? (a website I will be looking into more closely today)

I have read most of the relevant stickies on this site, thousands of articles online and a handful of books for study and pleasure. I feel now that the best way to continue my education is to actually practice. Do you guys think I should just jump in and try any method I can think of to trade, which may be overwhelming, or should I possibly follow some of the systems online here and take what I can from each? If so are there any basic strategies you would recommend on here which can help me to begin to learn the market? (Please do not say Buy Low, Sell High )

Recently I read The Superinvestors of Graham and Doddsville - Warren Buffet, a small and interesting report on Value Investing. I enjoy reading little pieces like this which can open the door to other interests.

When I am back in UK, it would be great to even meet up with a few of you guys. Even just to hang out at a bar or something, I'm sure some pearls of wisdom would fall my way! I see that there is a relevant thread for that, so will look into it in the future.

Anyway, I feel like I'm rambling, I apologise. All advice is welcome.

Martin

 

[Tinnaz369]

Okay guys, we can forget about Wall Street Survivor for now. It appears they have some decent resources, but it comes at a price of $29.95 per month. Decent value, but to pay to learnt the basics is madness when there are so many other resources out there.

 

[timsk]

. . . Anyway, I feel like I'm rambling, I apologise. All advice is welcome.

Hi Martin,
Yes, your post is rather rambling!


Due to its shotgun nature, it's quite hard to know what to suggest for the best. A number of your questions are covered by the 20 or so Trading FAQs - if you've not done so already - check 'em out here.

The overriding impression I get is that you don't have a clear focus in terms of what you want to do. For starters, are you interested in trading or investing? They are very different beasts. Based on your course, I guess the latter? If so, you might do better to seek advice on a site like The Motley Fool which is geared towards investment.

You made reference to interviews and jobs, although it's unclear to me what position you'll be applying for or who with? Generally speaking, if you're applying to a bank or prop' firm to become a trader, then having some sort of track record to show that you know your ar$e from your elbow is probably a good idea. There's a bespoke FAQ on this topic in the forum I've linked to.

Lastly, if you decide you want to throw your hat into the trading ring, you could do a lot worse than to start from scratch by working your way through the second link in my signature, below.
Tim.

 

[Tinnaz369]

The overriding impression I get is that you don't have a clear focus in terms of what you want to do.

Hi Tim,

Thanks a lot for responding. Well originally I was focussed on investing, but through reading a few different sources and gathering information I became interested in Trading too. I think what I really need to do now is practice some trading and see if it suits me, if it is something which I would like to do.

Thanks for the link to The Motley Fool, it will be a great resource for me to further explore investing. I will continue to check out T2W as I pursue trading to find my path in the future.

With regards to the job related questions, I guess I am asking with the idea of going into a job in trading (although I wasn't sure when I wrote the original piece ), so thanks for helping me clear that up.

I look forwards to hearing from you in the future, thanks for the advice!

Regards,
Martin

 

[malaguti]

Hi Tim,

Thanks a lot for responding. Well originally I was focussed on investing, but through reading a few different sources and gathering information I became interested in Trading too. I think what I really need to do now is practice some trading and see if it suits me, if it is something which I would like to do.

Thanks for the link to The Motley Fool, it will be a great resource for me to further explore investing. I will continue to check out T2W as I pursue trading to find my path in the future.

With regards to the job related questions, I guess I am asking with the idea of going into a job in trading (although I wasn't sure when I wrote the original piece ), so thanks for helping me clear that up.

I look forwards to hearing from you in the future, thanks for the advice!

Regards,
Martin

Try not to be too put off investing and Tims discouragement, there are still a few members around here that are able to think of the bigger picture. Despite the majority being of a shorter duration there is still some benefit in applying some of the more sound principles to longer term also. A breakout strategy on a 5min chart in principle could be applied to a weekly, or vice versa
This thread for example, should be a beacon for anybody thinking of a longer term nature
http://www.trade2win.com/boards/technical-analysis/134944-stan-weinsteins-stage-analysis.html
Its principles of a weekly chart I can testify also work on shorter durations

personally, sites like the motley fool don't do anything from a technical perspective and this is where this site is actually quite useful if unfortunately hidden behind the ramblings of many

if you do think of longer term, then by all means let me know and I'll pass on whatever information I can.
but certainly do check out that link above

 

[timsk]

Hi Martin,
malaguti makes a fair point - apologies if my post sounded discouraging - it wasn't meant to be!


Besides the excellent thread he links to, there is another by the same member (isatrader) which is well worth a gander and relevant to a longer term approach: Market Breadth
Tim.

 

[Tinnaz369]

if you do think of longer term, then by all means let me know and I'll pass on whatever information I can.
but certainly do check out that link above

Thanks a lot for the sound advice. I'm somewhere in between the two here, I can see my self scalping and I know I possess most of the natural traits a trader has, but on the other hand I saw myself as a long term investor for a long time. It has been in the last year or so my mind (and heart) is edging towards trading.

Maybe I will find myself doing some sort of swing trading, it is certainly what I will look into over the next few days.

 

[Tinnaz369]

Thanks for both of the links guys.

Tim, regarding your earlier advice I have read a lot of the information and I am beginning to formulate some sort of a plan in my head.

I will try to read Market Wizards, Trading in the Zone and The Disciplined Trader - books which I have been recommended a number of times and really should get round to reading.

I want to continue to gather information using this site, amongst others. I will focus my search on actual trading methodology as I have a good base knowledge now, I will read as many 'trade journals' as I can and see if I can find some methods which I would love to try out myself.

Within one month I would like to open a demo account and finally get my hands dirty. There is only so much theory I can take before I have to just get stuck in there. I will record my progress and try to explain every one of my trades, afterwards commenting on the methods I used, did I enjoy them etc. This will give me the added benefit of showing something to an employer, whether my results are good, bad or indifferent (I don't expect much), it will show I have the willingness to learn and the mentality needed to succeed in the tough trading world. I will try to create my own journal on here, so the generous members can continue to offer advice and help me to improve.