noob questions and how do people get rich trading!?

Develop a successful method, then identify a backer who will provide the deep pockets that will help. Then hope you remain successful.
For many success often turns to failure when you have someone or some technology 'over your shoulder".
 
ineedmoney90 said:
then why do people try to predict if it will rise or fall? and does that mean this game is just randomness? i want to be day trader. rn im playing paper trading to gain experience.
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ok...since u need money...i will go first. traider mentioned about betting the farm on one trade. this what i will do. buy a couple of es futes contracts for going long beginning monday 5/1/23 and hold it till fomc meeting on 5/3/23. when es shoots up during the fomc meeting...sell it. that's a lotto play right there. if i knew about this 10 years ago....i would have done it.
 
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Laissez Faire said:
Funny how everyone think they’ll get rich quickly from trading when the truth is that most people will get poor from trading and lose a lot of hair and time in the process. :)
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Best way is get rich medium or long term trends;
best way to get poor quick is ''bet the farm''\
lose the farm quick\lose time + hair.
Look@ hit rate/ usually as a % or odds, not that trading is investing or gambling:D:D
barchart.com has SPY=100% buy/qqq =100% buy.
NOT a prediction, thats why they name it weather forecasting NOT weather prediction:D:D
Wisdom is profitable to direct, cant predict+ NEVER confuse a high probability, like 100% buy SPY with infallibility...........................
 
ineedmoney90 said:
then why do people try to predict if it will rise or fall? and does that mean this game is just randomness? i want to be day trader. rn im playing paper trading to gain experience.
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1. Traders do not predict. They have an understanding of probability and understand that al though the next trade is random, over a series of trades, you have a predictable outcome
2. Then they use money management to overcome the worst possible outcome in the short term, so they can profit of the most profitable outcome in the longterm.
 
ineedmoney90 said:
then why do people try to predict if it will rise or fall? and does that mean this game is just randomness? i want to be day trader. rn im playing paper trading to gain experience.
More...
Make sure you paper trade with the same amount of money that you plan to start trading with.
If you are in the US, you'll need 25K to start day trading. (Pattern daytrading rule)
 
ineedmoney90 said:
ok can some of you guys answer some of my questions? am i right that if you buy 5 shares of amazon at 100 a share = 500 and it rises to 110 a share and you sell it would be only 550? and so i look at the graph and it usually takes months to a year to see the price rise so it takes a long time? so is it best to buy cheap stocks then like 5 x 1000 = 5000 and it rises to 9 in one year so its 9000 thus 4000 profit?
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I answered your question immediately with the word leverage.

Time for you to do some research.
 
Are you working?? Fund your 401k/IRA to the max...With an S & P 500 mutual fund.

You can learn to invest/trade, but it takes years. You need a cushion of money before you can trade (don't blow up an account)...First things first.
 
ineedmoney90 said:
ok can some of you guys answer some of my questions? am i right that if you buy 5 shares of amazon at 100 a share = 500 and it rises to 110 a share and you sell it would be only 550? and so i look at the graph and it usually takes months to a year to see the price rise so it takes a long time? so is it best to buy cheap stocks then like 5 x 1000 = 5000 and it rises to 9 in one year so its 9000 thus 4000 profit?
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9000, in that case, is more like an 80% gain. And 1000 is not a cheaper stock (10x more layout). The reason for the cheaper stock could be the extra volatility you get, but could also be the ability to run a portfolio with less outlay.

In my opinion you have to test enough data to get an idea of your expected drawdown, which will in turn determine how much leverage you can use. Then start compounding by always having max applied size the drawdown will allow. 20% per month and you are a millionaire in two years starting with $1000. But for those two years you'll have to have a way to pay the bills. The timeframe you trade on will greatly affect the drawdown. It's one advantage for day traders who may then be able to leverage up. But the alternative to day trading is a portfolio, as uncorrelated as possible. This too would keep the drawdown average low.

Now I'll quote Semperfrosty:
"
Learn to identify a trend.No one will be able to tell you exactly how to do that.It will be your own parameters.

Learn to identify where price tends to stop and start.

Realise that you are playinga game of probabilities,attempting to put the odds slightly in your favour."
 
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