I am not a trader. Just a grizzled old guy looking to help my son get a shot at being like you guys.
He just turned 27 and seeing the writing on the company wall, he told me had to go independent and was reading everything he can get and putting away his cash to trade and invest. Even selling his house, downsizing, cutting expense to the bone. Hard worker. Computer savvy. Good kid, just unfortunately born on the wrong side of the tracks.
My question for those of you that remember starting with nothing:
If you had one piece of advice or route to try that would help get a working toenail in this game, what would it be?
Thank you!
OldDad
The pit traders who were there long time were the "edge", they could see who were buying/selling volume, and most were doing spreads, they knew exactly what was "out of line", some used P&F in the pits. The fall out rate was huge as well for new guys, trying to cut it with no backing. On the edge of pits, if you were high school/college buddies and one worked for a brokerage and you were solo, you could make good living taking other side against retail. But ruthless sharks as they were back then, we live in a very different world today where much of trading is against programming.
I been trading since 1978, I was 21yo back then, easier to learn long term stocks. Then, I have done all the wrong ways of trading more than a dozen times, learning to trade commodities and intraday had lost over 6 figures over seven years of shear agony of me against me, desperation, suicidal, question one's worth, one's religion, humanity...I have figured out this much, unless you are a Math genius, the higher the IQ, longer it going to take as the markets are not logical in the beginning and at some point decades later, you have accumulated much knowledge of markets and more importantly of self, this is relatively simple=Buy Low and Sell High. Sounds so simple, but pitfalls everywhere one steps, self inflicted.
Markets don't care where you were born, grew up in streets of Chicago, smart enough to never be arrested, was an altar boy in grade school where that "boy" died long ago.
I believe these are the numbers I read along my travels:
0.50% make blunt of wealth from trading making over $500,000
1.50% make $10,000-$499,999
2.00% breakeven to $9,999 hugest percentage of years
96% negative returns
I use to advise people to learn how to trade but always practice, triple a sim account three times and at least know how to place trades and have some idea of principles required of price flow. I have stopped advising anyone to get into this business unless you like to find all the negatives of your inner demons, this by far the toughest business in the world to get good.
I only know of one trader who is a billionaire from day trading and he started in the pits and ran a hedge fund later in life. There are many more billionaires who trade long term.
It be far better to get college degrees and get a good job making 6 figures and learn how to trade long term and hedging, learn about options, the Buffet way of making wealth and with wealth-acquire businesses. Buffet owns 30.7% of Berkshire Hathaway which owns 100% 43 companies, several others majority shares, and partial of others.
https://www.reference.com/business-finance/companies-warren-buffet-own-33a7e4b0ba0ff2d4
Long term allows you the have a life outside, intraday traders....life is much less so as it takes so damn long to figure out and control your thoughts, least for me.
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