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FinanceWiz's picture

Beginner in Trading- How to learn?

If you are a beginner in trading and investing, how would you learn about it? You can't really just open an ETRADE account and start trading, or you will just lose all your money. So, how do beginner learn how to trade, about stocks, etc. ?

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iambateman's picture

open a mock trading account

open a mock trading account (google it there are many) and read read read (market wizards series is a good place to start)

sleepisfortheweak's picture

vse.marketwatch.com vse=virtu

vse.marketwatch.com

vse=virtual stock exchange
try really hard to win. it'll get you to follow the markets naturally. note that it's not real time though.

adehbone's picture

Find something you like that

Find something you like that is the main thing I would say. Because often the best traders, know one product better than anyone else, they may not know much else, but they make their money off that 1 product.

Also find out how much math you can take, and how much programming.

untilted's picture

advice from one of my trader

advice from one of my trader friends:

Learn how to play poker, if you don't know already. Learn what it feels like to have a perfect situation go against you and watch someone take your money. Develop your skill at choosing when to take big risks, and when to take small risks, and when to simply do nothing. I think poker is probably the best way to learn. Other strategy games might work too. Investing some of your own money is also a good way to go, though the commissions will eat away if you're not trading big size. But think of the money you put into investing or into poker as an "investment" in yourself and your education. It will more than pay for itself over time. Also, learn how to manage your ego when you win. Or you'll lose everything.

fandango's picture

For practicing

For practicing investing/asset management, you can make a mock portfolio (long or short) at www.marketocracy.com.

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"It is a fine thing to be out on the hills alone. A man can hardly be a beast or a fool alone on a great mountain." - Francis Kilvert (1840-1879)

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liquiditys's picture

math and programming?

adehbone wrote:

Also find out how much math you can take, and how much programming.

Do you mean try to take as much programming and math in college that is related to trading? Is both really necessary and concentrate on a mathematics minor and perhaps a MIS major.

ideating's picture

You do not need to be a CS

You do not need to be a CS major to have enough programming knowledge for trading.

liquiditys's picture

what about MIS major

But having a MIS (management information systems) couldn't hurt right? The only reason why I'm even double majoring in it along with Finance is because I heard programming is a plus.

Do you think it is a waste of time and I might be better off if I dropped MIS in favor of accounting, while trying to land a S&T or Fixed Income offer next year?

randomwalk's picture

Strictly for trading, MIS

Strictly for trading, MIS would be much more useful (that isn't saying that there aren't people with accounting backgrounds who trade, but it means that knowing things like SQL or VBA will be solid skills).

If you are going into M&A, equity research, coporate finance, anything like that - go for the Accounting - you will know your statements and how they link infinitely better than an Econ major who best case scenario took Intro Financial Accounting.

Jimbo's picture

"If you are a beginner in

"If you are a beginner in trading and investing, how would you learn about it? You can't really just open an ETRADE account and start trading, or you will just lose all your money. So, how do beginner learn how to trade, about stocks, etc. ?
"

ignore the comments above. you are talking about personal investing, and for that you dont need math or computer science. follow up on a couple of companies, or mutual funds and see what you like and what makes sense to you. read peter lynch, buffett and graham.

and remember that the act of saving, especially at this stage, is the most important thing. whether you get 5% or 10%, the main thing right now is that you save.

pillz's picture

programming is a plus. Agree

programming is a plus. Agree with Jimbo you don't need math computers or rocket science. Though if you're interested in algorithmic trading you might want to take a look at metatrader.

Warhawk_1's picture

interactive brokers + MATLAB

interactive brokers + MATLAB = money