ITT: I aware brahs on how to supplement their income with TRADING&INVESTING (Srs)

[TheFassbender]

I figure my first post on the misc should be a good, helpful, productive one in an area that I have expertise.
So here is how you can make a little extra money on the side.

Trading vs Investing
Many people think that these are the same. Trading is basically buying low and selling high to make a profit. Investing is buying shares in fundamentally strong companies at good price to grow your assets and gain dividend payments.
tl;dr: Trading = Buy and Sell, Investing = Buy and hold

1. Trading
If you are patient, intelligent, and willing to learn, this will be a nice source of income for you. Some people will say "no brah, you will lose money". But look at it this way: If you just randomly picked a stock and clicked long/short, you have a 50% chance of being right. (For a mathematical proof of this, see post 42) So if you do some analysis, you have more than a 50% chance.

What to do
1. Complete the school at babypips.com
2. Read Market Wizards, Trading in the Zone and Technical Analysis of the financial markets
3. Set up a demo trading account at websites like OANDA. Once you are making consistent profits (you will if you do everything above), time to start with real money.

If you do everything above, have the right attitude and are patient, you will definitely be able to make some money.

2. Investing
This is more long term. For this I recommend the intelligent investor by Benjamin Graham. You are basically looking for stocks which will pay you money via dividends and rise in value. It's good to learn economics, read the financial times etc.
You use various indicators such as Price to Earnings ratio in order to see which companies are undervalued.
This is less risky than trading, but also takes longer to see results.


Any questions - ask me.

[ThreeNipples]

I have 35k sitting in the bank, I'm looking for a long term, low risk investment, any ideas?

[amperless]

What do you think about developing your own trading algorithm?

[TheFassbender]

I have 35k sitting in the bank, I'm looking for a long term, low risk investment, any ideas?

I don't give single stock recommendations. You know why? Because anyone can go on the internet and search "Good stocks to invest in".
I would say, you want to invest. Investing is not as risky as trading and is more long term. But you should do your own research. Apart from anything, it's a valuable skill. Start by reading a book like the Intelligent Investor. Then read some more about investing, once you know the basics you should be in the position to make a good few investments.

I would say one thing however: The general stock market (S&P 500 etc.) Are quite low now, and in my opinion possibly overvalued and susceptible to a correction. Maybe wait for this correction to buy stocks so you get better value.

[TheFassbender]

What do you think about developing your own trading algorithm?

If you make a good trading algorithm you will make a lot of money, you would probably be best to set up a prop shop in this case. But you'd need to be pretty damn smart to do this, as well as skilled in maths.

[amperless]

If you make a good trading algorithm you will make a lot of money, you would probably be best to set up a prop shop in this case. But you'd need to be pretty damn smart to do this, as well as skilled in maths.

Yeah I know, I just want to implement my forex stratey into an algorithm (I used to trade in a small prop trading firm), but after 3 years of doing it manualy I burned out. So my longterm goal is implementing a traiding robot to do operational tasks for me, do you happen to know any good literature on this matter?

[irdolan]

Hm, I like people who make informative threads like this on the misc. Enjoy being fully green good sir.

Nice post, subbed.

[KingofE]

I figure my first post on the misc should be a good, helpful, productive one in an area that I have expertise.
So here is how you can make a little extra money on the side.

1. Trading
If you are patient, intelligent, and willing to learn, this will be a nice source of income for you. Some people will say "no brah, you will lose money". But look at it this way: If you just randomly picked a stop and clicked long/short, you have a 50% chance of being right. So if you do some analysis, you have more than a 50% chance.

What to do
1. Complete the school at babypips.com
2. Read Market Wizards, Trading in the Zone and Technical Analysis of the financial markets
3. Set up a demo trading account at websites like OANDA. Once you are making consistent profits (you will if you do everything above), time to start with real money.

If you do everything above, have the right attitude and are patient, you will definitely be able to make some money.

2. Investing
This is more long term. For this I recommend the intelligent investor by Benjamin Graham. You are basically looking for stocks which will pay you money via dividends and rise in value. It's good to learn economics, read the financial times etc.
You use various indicators such as Price to Earnings ratio in order to see which companies are undervalued.
This is less risky than trading, but also takes longer to see results.


Any questions - ask me.

you have a nice bookshelf, I have the same

[TheFassbender]

Yeah I know, I just want to implement my forex stratey into an algorithm (I used to trade in a small prop trading firm), but after 3 years of doing it manualy I burned out. So my longterm goal is implementing a traiding robot to to operational tasks for me, do you happen to know any good literature about this matter?

Wow, props to you. I'm afraid you are more experienced than me in this advanced area of trading, but I guess you would need to...

-Learn pretty advanced coding (or hire somebody to code for you, who has decent knowledge of markets)
-Learn advanced mathematics (or hire a mathematician, or has decent knowledge of markets)
-Tell them the situation, tell them what you need, and pay them well to do it for you
As far as I know metatrader 4 has some good tools for automated trading.

[TheFassbender]

you have a nice bookshelf, I have the same

Admittedly it's not a lot of books, but I've read many more and these are my favourite and the best if you just want to read a few to see if it could work for you.

If you read those and want more, there's many more available.

[Fit1NYC]

I read the intelligent investor recently.
Might take a stocks and options class this summer and security analysis in the fall.
Probably won't though lol I just enrolled in acting school.

My accounting and corporate finance professor was a trader for 35 years and calls it "the dark side"
Seems like guys make a lot of money but it's not a morally good profession

[TheFassbender]

I read the intelligent investor recently.
Might take a stocks and options class this summer and security analysis in the fall.
Probably won't though lol I just enrolled in acting school.

My accounting and corporate finance professor was a trader for 35 years and calls it "the dark side"
Seems like guys make a lot of money but it's not a morally good profession

Well there's nothing immoral about investing/owning a share of a company and earning money from your investments. That is the basis of capitalism after all.

Those classes sound like a good idea though, options can be a little riskier though.

[amperless]

I read the intelligent investor recently.
Might take a stocks and options class this summer and security analysis in the fall.
Probably won't though lol I just enrolled in acting school.

My accounting and corporate finance professor was a trader for 35 years and calls it "the dark side"
Seems like guys make a lot of money but it's not a morally good profession

Being a trader is one of the toughest proffesions in this world, the stress and pressure is almosth unberable, and many people burn out form crunching numbers behind a computer screen for 12-14 hours a day. I know I could not do it anymore after 3 years and I rather work in a gym now...

[TheFassbender]

Being a trader is one of the toughest proffesions in this world, the stress and pressure is almosth unberable, and many people burn out form crunching numbers behind a computer screen for 12-14 hours a day. I know I could not do it anymore after 3 years and I rather work in a gym now...

This is true, but investing isn't that bad and in fact should be done by everyone who is sensible with their money.

Trading is great if you can manage it though.

[amperless]

This is true, but investing isn't that bad and in fact should be done by everyone who is sensible with their money.

Trading is great if you can manage it though.

I think that not many people can tell apart from what traiding and what investing is.

[TheFassbender]

I think that not many people can tell apart from what traiding and what investing is.

Yeah that's true too. I guess I should update my OP to include this.

[Dup15]

Strong timing OP, i'm in the middle of watching Boiler Room atm.

[Yero91]

I feel nothing but utter contempt for all day traders.

Good advice, OP.

[bentimidator]

[QUOTE=bentimidator;1016043053]check back in thread in 6 months to see bunch of people blow their savings. if it was so easy, then everyone with a bs in finance would be ceo10k/day

[rotatoo]

let me guess youre between the ages of 16-18

[Ausswolf]

Do automated/robot trading systems for forex work?

[TheFassbender]

Do automated/robot trading systems for forex work?

Some people make profit from these, but unless you yourself are a highly knowledgable individual in terms of mathematics, computers and trading, don't expect to make money this way.

As general rule, if it seems too good to be true, it probably is. i.e don't expect to be able to make money without learning a lot first and working hard.

[NaturalBrah]

http://www.reuters.com/article/2013/...0AR9F220130122

The U.S. Commodities Futures Traders Commission, in 2010,
when it passed tougher regulations, said retail foreign exchange
was the area the agency oversees where the most retail fraud
occurred. Some firms run advertisements that tout high returns
with little risk. Industry data shows that more than half to 75
percent of accounts lose money.


No thanks Jeff

[Kard]

I've read the Market Wizards books. Very very good recommendation. That's how I knew you were legit OP.

I'll buy the other ones. If I have any questions in the future would I be able to PM you?

[arem20]

I figure my first post on the misc should be a good, helpful, productive one in an area that I have expertise.
So here is how you can make a little extra money on the side.

1. Trading
If you are patient, intelligent, and willing to learn, this will be a nice source of income for you. Some people will say "no brah, you will lose money". But look at it this way: If you just randomly picked a stock and clicked long/short, you have a 50% chance of being right. So if you do some analysis, you have more than a 50% chance.

Any questions - ask me.

A. Expertise? Oh really? Please share with us your background, education, what firms you have worked with, positions held with these firms, and images of your trading earnings, tax documents with spoon pics. Feel free to remove personal information.

B. "If you just randomly picked a stock and clicked long/short, you have a 50% chance of being right." --- No, just no. The fact that you would type something like this as fact makes it glaringly obvious that you have absolutely no clue what you are talking about.

C. Also... What brought you to this board? You were randomly sitting around one day and thought "Hmm, I should join a bodybuilding forum and start making posts about investing to help people" Or was it perhaps that you did your research and know that this is a high traffic board in which many members discuss investing issues and that there would be plenty of fish/pigs here?

This person is likely a scammer or has some other motive that is not on the up and up.

[TheFassbender]

The U.S. Commodities Futures Traders Commission, in 2010,
when it passed tougher regulations, said retail foreign exchange
was the area the agency oversees where the most retail fraud
occurred. Some firms run advertisements that tout high returns
with little risk. Industry data shows that more than half to 75
percent of accounts lose money.


No thanks Jeff

No surprise that people who fall to fraud will lose money. The hint is "Some firms run advertisements that tout high returns with little risk"
See what I said earlier about "too good to be true"

I've read the Market Wizards books. Very very good recommendation. That's how I knew you were legit OP.

I'll buy the other ones. If I have any questions in the future would I be able to PM you?

Sure, feel free.

[Needhelp1027]

buy VHC

[TheFassbender]

A. Expertise? Oh really? Please share with us your background, education, what firms you have worked with, positions held with these firms, and images of your trading earnings, tax documents with spoon pics. Feel free to remove personal information.

I have expertise trading and investing. You don't need to work at an investment bank to know how to trade and invest. In fact most investors don't work at investment banks and most investment banks don't even take a view on the market.

B. "If you just randomly picked a stock and clicked long/short, you have a 50% chance of being right." --- No, just no. The fact that you would type something like this as fact makes it glaringly obvious that you have absolutely no clue what you are talking about.

A stock will either go up or down, this is a fact. Are you talking about a brokers comission or something?

Seriously, such hostility is not healthy. Are you a troll or something? Everything posted in the OP is legit advice, I'm not going to start asking people for money. In fact I already told people not to just blindly follow others' advice in the thread.

[Fit1NYC]

Watch Enron: the smartest guys in the room
Their traders were crazy
It's in YouTube

[TheFassbender]

Watch Enron: the smartest guys in the room
Their traders were crazy
It's in YouTube

Aware, that's a pretty entertaining film.