Getting Started

A

Alex240z

Hey guys,

I'm 20 years old, and have never traded securities.
That being said, I've been doing tons of research and learning about trading and investing has literally come to fill up all my free time. I know I can be good at this.

But - There's always a but, right?

My risk money is small. Tiny, even. I'm not even going to say, because I won't get taken seriously. But I can pay my premiums, and am okay with losing it. Again - I'm okay if I lose everything. So don't bother warning me. Time's on my side, so if I lose, I'll save again and play it different.
Options appeal to me because of their risk is very well defined, and with such a tiny portfolio, leverage is probably the only way I will see a return that even makes up for commission. I'm simply asking for any advice you all as active, experienced, elite traders may have obtained over time that you wish you had been given when you had just started with options.
 
Well, your attraction to options shows that you identified some key characteristics that make options stand out amongst various speculative vehicles.

Options do have well defined risk/reward when structured properly. As for leverage, I think the variability of leverage make them increasingly complex. If I was just intent on leveraging up a small capital base. I think Futures is king. And, the low commissions can't be beat. Commissions is the big disadvantage of Options trading.

There's a lot to learn. And, the learning never stops. You should give yourself a leg up and work for a firm in Chicago or NY.
 
Quote from xandman:
There's a lot to learn. And, the learning never stops. You should give yourself a leg up and work for a firm in Chicago or NY.
More...
There certainly is.

I'm a long way from Chicago or New York, unfortunately. Although long term I am considering working at a firm. I have a friend who works Forex at Fidelity... If I can build myself a decent portfolio, maybe I can get a good word.

I have noticed commissions are steep for small accounts. OptionsXpress starts at 14.95 an order, and with a small fund to start with, this can eat up a hefty portion of returns.

I'll also look into futures - Thanks!
 
Quote from Gringo:

Why are you attempting to use real money before having a well defined and tested method?
More...
I'm paper trading and back-testing my ideas now. But that doesn't really compare to real world experience from more experienced traders.
 
You must log in or register to reply here.
Back
Top