Advice for novice trader

C

covarrubia

Hello ET,

I'm a novice, but technically skilled trader (wannabe). I'm currently saving about 50% of my dayjob earnings in order to invest it. Unfortunately I don't really have much time so I'm looking for something that doesn't have a too steep learning-curve.

What do you suggest?

Thanks
 
Investing and trading are two very different things.

I suggest you skip the trading dreams and move strictly onto investing.

I assume you are young, in that case:

Throw 80% into SPY (SP500 Index ETF) and 20% into Municipal Bonds that are 100% tax free.

Reinvest the SPY divs into more SPY.

As your position grows sell covered calls during bear markets, read about them, learn about them, but do skip trading.

These are excellent times to invest in equities are markets have been beaten down.

Good luck.
 
Thank you Nexen

I realize now that I have posted in a wrong forum, I guess equity markets are a good way to get my feet wet.

I also think that trading successfully (lets say forex) is more difficult since you basically have to trade with (bet against) other traders meaning you have to be more skilled than average to make any money.

Equities on other hand depend mostly on how the particular market or company is doing.

Is this view correct?
 
Quote from NoDoji:

What are your specific skills?
More...

I browsed through the forums and saw that people tend to brought up whether they have technical skills or not. I'm a software developer by the way, but I'm not sure if it helps.
 
Quote from Nexen:

Investing and trading are two very different things.

I suggest you skip the trading dreams and move strictly onto investing.

I assume you are young, in that case:

Throw 80% into SPY (SP500 Index ETF) and 20% into Municipal Bonds that are 100% tax free.

Reinvest the SPY divs into more SPY.

As your position grows sell covered calls during bear markets, read about them, learn about them, but do skip trading.

These are excellent times to invest in equities are markets have been beaten down.

Good luck.
More...



If it doesn't work out as Nixon suggested, he'll do the PnLs for you to post.
 
You must log in or register to reply here.
Back
Top