How to get started in trading?
I dont actually wanna become the next Warren Buffett it's more a learning by doing thing for me to gain some knowledge on the financial market.
There are just so many possibilities that i have no idea where to start + some dangers(im looking at you leverages).
Best thing would be to have an investment banker buddy but i have none. Any books you can recommend? Websites? Youtube channels?
Any idea senpai?
It really depends on what you mean by "trading".
90-some% of people don't have the sufficient time or resources to put toward real trading.
If it's investing you want though, then this >>1083875
It'll do for a beginner.
Just don't hang around these threads hoping to shortcut the fundamentals. There are countless shills lurking, making the noise hard to filter out.
First, clarify what you mean by 'trading' like >>1083898 said.
Then use investopedia to gain a basic understanding of diff. markets (equities/bonds/commodities/currencies).
Reading blogs like ZeroHedge or articles from FT/Bloomberg will be difficult at first with little to no knowledge, but they're helpful for understanding what is important to know about. Eventually you'll also be able to understand what the articles are talking about pretty easily and can get good info from them.
Be careful with the news, though. It can be misleading and paint an incorrect picture in your head very easily. Don't trust everything you read. There's almost never one answer. (Good books on this would be Fooled by Randomness + Black Swan)
The best way to learn is to track daily price action. Make a spreadsheet every Monday like pic related. As you can see, I have different sectors + economic releases (important to understand what SOME of them mean and why they're important) + good reads from the week (largely from ZH)
Hope this helps, also I'll lurk and try to respond to follow up questions. I know a lot of traders (real Wall St traders, not sit at home on E-Trade traders), so I can get more technical or specificl info/answers from them if needed.
It's a correction. Unless something dramatic occurs and everyone loses their minds, the worst that can happen is we go into an 8 month recession.
We simply aren't at a level like in 2008. The world is just slowing down its growth and people need to get used to lower yields on investments.
I'd tend to agree with this guy in saying it's a correction, but...
There are a lot of fragile things in the market right now that, if broken, could (and I really do mean could, it's not definite) begin a massive downward spiral.
If you're planning on putting any money into the markets right now, I'd wait. It's a really weird time right now and you'll likely get destroyed if you don't now how to trade this kind of vol
it is absolutely going to be a superb financial crisis because we have had 4000 year low intereset rates (never before this low, this is so crazy) but all the money will flee to stocks from bonds
What do you see as very fragile?
The American economy is very sturdy right now and we aren't running too crazy on derivatives or complex instruments. The only things I do think caution is needed is the tech bubble, oil obvi, and baby boomers cashing out their investments. Also Asia, but fuck them.
Im looking more at emerging markets, the dollar, and energy debt/bank exposure to energy debt (ties into oil like you were saying)
Also running crazy on derivatives isn't the only way to blow up... that being said guys like DB have insane exposure to debt and derivatives alike.
My concern in general is credit/debt, just look at bond markets and what they seem to be saying.
Good for learning about what's going on if you make sure not to take all of it completely seriously. Also all the traders ik read it and say the same thing, so your greentext is cute but wrong
>remove all emotional aspects from your decision making process. do not trade a company's stock because you like the products they make, and do not convince yourself that it will always do what you expect it to
>it's about time in the market, not timing the market. if you think a badly performing stock will rise, wait until you see some indication of it doing so. remember, the market does not always behave logically, so sometimes your logical prospects will meet an illogical, return-destroying fate.
>be patient, but also don't be hesitant to change your position. if a well performing stock takes a small sell off yet the future appears bright for its company, chances are it is just a sell off and not apocalyptic. if the market is unstable and your portfolio is taking a nose dive, it might be time to exit the market or find better things to invest in.
you're probably best off trying to get hired into a junior trading position
if you get into a target school then try to land a summer internship and get onto a grad scheme...
failing that there are other opportunities to trade in some capacity - options marketmaking firms like Optiver, IMC, Jane Street will get you trading rather rapidly - you'll also be out of the door rather rapidly if you're not successful..
some smaller firms in London or Chicago might be less competitive to get into too
lastly - there are some industries the grads targeting banks won't consider - I know a guy who started trading at a power company then moved to the energy desk at a big bank... so you could try utilities, oil companies and the various commodities houses...
London still has one open outcry floor left - the LME... and judging by the characters smoking outside at lunchtime on Fenchurch St there is still room for the uneducated barrowboy types in that market.
anyway that would be my advice - the online forums are full of noise... if you want to learn to trade then do it by learning from people who are already successful traders - not people who will sell you some shitty course or seminar but people who have a vested interest in training you because you're now employed by their desk
>im talking about managing directors and hedge fund guys