My Plan

Quote from college_trad3r:

Futures are the best vehicle to find out if you're a real trader or just a gambler.

Especially because of the high leverage.
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Leverage is something you want after developing a winning strategy and confidence, not to start out due to a lack of capital.

If someone started out trading say the ES there would be no opportunity to discover if you're a real trader or just a gambler as you could quickly wipe out your account without a strategy or understanding of leverage before you ever got to put on many trades.

In short, don't do this.
 
Quote from illinimatt81:

Leverage is something you want after developing a winning strategy and confidence, not to start out due to a lack of capital.

If someone started out trading say the ES there would be no opportunity to discover if you're a real trader or just a gambler as you could quickly wipe out your account without a strategy or understanding of leverage before you ever got to put on many trades.

In short, don't do this.
More...

If he doesn't trade futures then what can he trade? Stocks?
When the stock he is long on gaps down 20% he will suddenly become a fundamental trader. When he is short his broker will force him to cover and make him lose a winning position. Trading futures is best way to start out in the business.
 
my advice is also, do not sell your houses! as of late people are bidding up houses so quickly that its always above asking price. Here is what you should do though, rent them out, have passive income coming in and run a simulated trading account for at least 1-2 years and see how well you actually do. Jumping in now w/ no experience what so ever I grantee you will lose that $55k.
 
Quote from stockboy201:

my advice is also, do not sell your houses! as of late people are bidding up houses so quickly that its always above asking price. Here is what you should do though, rent them out, have passive income coming in and run a simulated trading account for at least 1-2 years and see how well you actually do. Jumping in now w/ no experience what so ever I grantee you will lose that $55k.
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the sim for 1-2 years? theres a reason prop shops who back don't do this... theres a reason you'd have to be one insane little twit or massively scared cunt to endure that much sim. i just don't understand this mindset of focusing solely on risk, its just not that simple. and in this case, its ridiculous. i don't know one single trader in my office, or any i've been in, that did this.
 
What a fantastic problem to have when you are 18. With a little luck and a lot of common sense you will have your life made in no time.
 
Wish I had caught this thread a bit earlier.

1st off you only have 55k to start with, the rest is in real estate. Selling any of the real estate you own is going to take months unless you unload it 20-30% cheaper than the last few houses that sold in the area. Only other thing I would worry about is how easy it is to rent where you are, some places near me have been on the market for rent for many, many months.

Where are these houses located? Are they livable, do they need any work, I would totally forget about trading for the moment and take the 55k you have and fix what ever needs to be fixed to get the rent coming in. Again I don't know what the housing prices are near you or what the going rents are but with 4 houses worth approx $700,000 total I can guess rents and the cost of living is not that high, I could assume a 1 bedroom where you are goes between $600-800 MAYBE a $1000. Houses where I am are around $500-$700k, some as high as $2-$3 million.


Just to let you know you could retire without ever trading a single stock. You should rent out the 4 houses and create a small studio in one of the houses getting all rent from each house while you live rent free, you should not occupy an entire house when you can rent it as income. I dont know if you they are single family houses or a 3 story 5 family apartment but I think you could easily clear $5000-$10,000 a month depending on how many apartments you have.
 
It is funny that how so many people have the " right " advice for the OP. I bet some of the people who gave advice are the same people who once had 700k or 100k and blew up their account.

To the OP: You have a great opportunity, don't waste your time with a loser job, you have nothing to prove to anyone. You are different from most 18 y/o so go ahead whatever it might be, do what you love.

Think hard about what is that you really want to do in your life. Sell what you can then follow and commit to your dream 100%. If you have passion for what you are doing chances are that you are going to make it.

Trading professionally takes time and no one will tell you how to do it, but from your previous posts you seem to have a rational approach. If in the worst case scenario you blow up your 50k and learn you can always come back. There is nothing wrong with losing trades because it is part of this business, it is how you react to losing trades that makes a difference. Most amateurs have to be right at all costs and end up losing it all while professionals leave their ego out of the door and get out fast from losing positions. That way they can trade another day.


If you want to learn a little about trading send me a PM and I will give you my website. I am not selling/promoting anything, but it gives a starting point to someone new or green like yourself. Maybe it will just scare you and that might be good too. Although this year I am flat I aim to make 1%-2% every month.

I have been trading professionally for 2 years, but I am still learning my performance and trades are posted. Again it is nothing more than a starting point, but it is real. Trading professionally is tough, but it can be done.

You have one of the things necessary to be succesfull. That is a capitalized account, the rest is up to you.

Good Luck.
 
Don't even think about day trading or investing until you develop a solid trading plan. Don't get sucked into the allure of making a ton of money... especially if you just inherited capital.

Best of luck
 
Quote from Loki:

It is funny that how so many people have the " right " advice for the OP. I bet some of the people who gave advice are the same people who once had 700k or 100k and blew up their account.

To the OP: You have a great opportunity, don't waste your time with a loser job, you have nothing to prove to anyone. You are different from most 18 y/o so go ahead whatever it might be, do what you love.

Think hard about what is that you really want to do in your life. Sell what you can then follow and commit to your dream 100%. If you have passion for what you are doing chances are that you are going to make it.

Trading professionally takes time and no one will tell you how to do it, but from your previous posts you seem to have a rational approach. If in the worst case scenario you blow up your 50k and learn you can always come back. There is nothing wrong with losing trades because it is part of this business, it is how you react to losing trades that makes a difference. Most amateurs have to be right at all costs and end up losing it all while professionals leave their ego out of the door and get out fast from losing positions. That way they can trade another day.


If you want to learn a little about trading send me a PM and I will give you my website. I am not selling/promoting anything, but it gives a starting point to someone new or green like yourself. Maybe it will just scare you and that might be good too. Although this year I am flat I aim to make 1%-2% every month.

I have been trading professionally for 2 years, but I am still learning my performance and trades are posted. Again it is nothing more than a starting point, but it is real. Trading professionally is tough, but it can be done.

You have one of the things necessary to be succesfull. That is a capitalized account, the rest is up to you.

Good Luck.
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There's a reason 70% of lottery winners winning millions blow up without financial advisors. Living in trailers, being in debt a few years or decades later is not an uncommon thing to happen. Go to google "lottery winners broke" and you will find the knowledge.

Reason is, it's unearned money. Inheritances are unearned money.

He used to be a broke 18-year old.
Now he an 18-year old, completely the same, but with money.

He got the money but no skills. Money isn't magic, he's still the same skill-less person. I give him 90% chance of blow-up.
:(


Let me put it this way. Why were you a broke 18-year old to begin with, and not an 18-year old with $2000-$5000 in savings? Look deep into your eyes and you will find the answer.
 
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