So I’m getting bored with work being slow due to the holidays, and decided to get into trading.
I dabbled into this game about a decade ago, used to get some tips and what not, got busted in the tech-bubble days and then got out. 
So now seeing the market on the upswing I was thinking maybe I should learn this skill and see if i can make a dollar or 2. I just created a virtual-trading game on MarketWatch and have started reading.
Anyone got tips, guidelines etc for a new investor? I think this would be a good starting point for a lot of our young members on this forum
Re: Back/new in the trading market
Anyone got tips, guidelines etc for a new investor? I think this would be a good starting point for a lot of our young members on this forum
Word of caution to young members of this forum
Don't trade. Don't speculate. Don't ask for trading tips in a forum.
There are probably 1000 traders who lost their shirt for every trader that made it.
PS Trading should not be confused with investing.
Re: Back/new in the trading market
One of the most well known trading piece of wisdom - as January goes so goes the market. Of course, this is to be expected. As today WSJ pointed out, the correct way to assessed the Jan effect is to look at market performance for remaining 11 months. It was determined if mkt up in Jan following 11 months up 69% of the time. Well November has same Stat!
Past Nov mkt down. This Jan mkt up. Mixed signals, anybody?
Re: Back/new in the trading market
Oh great Southie, please teach this young Northern Blot the difference between trading and investing. Is it just a matter of duration?
Re: Back/new in the trading market
Oh great Southie, please teach this young Northern Blot the difference between trading and investing. Is it just a matter of duration?
Bhai yeh great shreat kaiku?
From Tofibaba ( who is a genius in computers) post I gathered he was looking for instant profit from Trading. Use ot game, trading tips market on upseing as criterion to invest rang some alarm bells. Then the use of the word investor in the same post indicated to me trading was confused with investing.
I guess I owe an apology to Babaji for my post - which may have been too direct. So I accept the "Great" titles as an appropriate and well deserved smackdown!
Re: Back/new in the trading market
My main goal was to state in no uncertain terms to the young and impressionable that one most probably would lose money through trading. Trading is based on garbage such as
momentum
Technicals
Investing is based on thorough analysis of financial statements and valuation. I had opened a thread with significant contributions from Ali And Arshad - both of whom are way more knowledgeable. I will provide thread title here.
Yes traders have a short time horizon. Investors a long time horizon.
Re: Back/new in the trading market
Some of the threads I opened my be useful
1) what is your investment philosophy?
2) interactive thread - on investing
3) interactive thread - case studies
4) financial nuggets
5) what you wanted to know about cyclical stocks and were afraid to ask.
And of course sites such as Investopedia. Saeed in Pak was supposed to have used this site. Look forward to his feedback.
Apologies again to Babaji. I try to be ultra cautious when it comes to giving tips to the young. Hence the note of caution.
Re: Back/new in the trading market
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Re: Back/new in the trading market
Muchas Gracias Señor Southern Blot for the titles.
I believe I've read a few of them in the spring of my youth, when I was but a hot-blooded (and totally ignorant) tyro. But now it's winter (quite literally) and perhaps, I should try again.
I've read some books here and there, and am still trying to read a few more. Plus, I too, have looked at simulators (I mostly look at tech, bio-tech/pharma). But for now, I'm just in it to learn and figure things out.
I figure it's just a little something for sometime down the road, but not now.
Re: Back/new in the trading market
No problems! And stay warm during the winter!!
For most people a Total Market Index Fund would be the best option. Dollar cost average into the market. Rather than buying individual stocks.
I follow a dual strategy. About 80% goes into index funds ( periodically). The other 20% goes into buying what I perceive as undervalued stocks - all blue chips most paying dividends.
Since index funds are mkt cap weighted they tend to overweight high mkt cap stocks. So my strategy provides a ballast ( for me). By overweiggting undervalued stocks.