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Help with direction for a beginner? Help with direction for a beginner?

02-03-2012 , 03:59 PM
I'll list some bullet points of what I'm trying to accomplish. Any help would be appreciated. If my goals are unattainable just tell me to invest in a mutual fund or something.

*I am trying to get interested in the market to the point were I'm excited (like a lot of you) to check the end of day prices.

*I'm not looking to day trade. Buy and hold for years strategies won't get me interested (not that it's a bad idea).

*I would like to specialize in a specific area as opposed to a general knowledge of the market

*I would like to get an edge eventually, but initially I just want to learn and get interested.

I keep hearing things like options trading, day trading and short term trading in general are too hard to beat.

I want to be interested in the daily goings on of SOME part of the market and make a few trades every month or so. Just to keep me learning. Is this just a beginners fantasy world?
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02-03-2012 , 04:15 PM
Why is one of your goals to become emotional over prices?
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02-03-2012 , 04:18 PM
Hey halsted,
I'm sure I'm not alone when I recommend you read the "what should I read" thread.

and as an anecdote:
the single most significant thing I ever did that determined my career path in finance was by playing a "stock market game", where I was given $1m of hypothetical dollars and was allowed to simulate trades in real time on the markets. The first one I did was in high school, and I ended up losing more money than anyone else in the class.
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02-03-2012 , 04:34 PM
Quote:
Originally Posted by oofRome
Hey halsted,
I'm sure I'm not alone when I recommend you read the "what should I read" thread.

and as an anecdote:
the single most significant thing I ever did that determined my career path in finance was by playing a "stock market game", where I was given $1m of hypothetical dollars and was allowed to simulate trades in real time on the markets. The first one I did was in high school, and I ended up losing more money than anyone else in the class.
I read the thread and rented some of the books in it. I also have tried the free money game. Unfortunately that won't get me interested (not that I want to waste money) Also, I am trying to start learning a specific path, if that makes any sense.

P.S. I hope this thread is ok. If mods think it should be moved to the megathread I understand
Help with direction for a beginner? Quote
02-03-2012 , 04:41 PM
Quote:
Originally Posted by DOOM@ALL_CAPS
Why is one of your goals to become emotional over prices?
Maybe I explained poorly. I want a routine of checking the market, learning resources and forums often. The goal isn't to get emotional, but motivated.

Something more in depth than "I'll just buy some facebook ipo and wait"
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02-03-2012 , 04:47 PM
Are you telling me you're asking for recommendations to get you interested in something that you don't find interesting?
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02-03-2012 , 05:04 PM
Yes, but he will say something otherwise..because he doesn't know himself.
Help with direction for a beginner? Quote
02-03-2012 , 05:24 PM
Quote:
Originally Posted by halsted
I'll list some bullet points of what I'm trying to accomplish. Any help would be appreciated. If my goals are unattainable just tell me to invest in a mutual fund or something.

*I am trying to get interested in the market to the point were I'm excited (like a lot of you) to check the end of day prices.

*I'm not looking to day trade. Buy and hold for years strategies won't get me interested (not that it's a bad idea).

*I would like to specialize in a specific area as opposed to a general knowledge of the market

*I would like to get an edge eventually, but initially I just want to learn and get interested.

I keep hearing things like options trading, day trading and short term trading in general are too hard to beat.

I want to be interested in the daily goings on of SOME part of the market and make a few trades every month or so. Just to keep me learning. Is this just a beginners fantasy world?
Few thoughts of mine, none of which is investing advice.

not sure how to get you interested in checking end of the day prices, as most investors and advisors don't care either.

If you really want to be interested in a particular "area" I would first learn at least the basics of the market and probably more. Some people will tell you that up to 70% of the movement of a particular investment is tied to the market as a whole.....(more to this saying, but don't think it is needed here).

(generic ideas) As for some "area" to pick you could consider studying a particular country or continent, a particular commodity, or a particular industry. Other ideas you could focus on but after reading your 1st post they may not be exciting enough are REITS, utilities, or preferred stocks.

"*I would like to get an edge eventually, but initially I just want to learn and get interested.": You are asking for an edge in a game that is run by sharks. You are competing against professionals. Of course in a good year for the market you will most likely make money no matter what, but don't think you are going to come in a murder the market's return every year. This doesn't mean you can't luckbox way through everything though.

I'm not saying all this to discourage you because I always think it is a great idea for someone to take an interest in the investing world, but I just wanted to give you some warning. GL
Help with direction for a beginner? Quote
02-04-2012 , 04:49 PM
Quote:
Originally Posted by 1ns71nct
Yes, but he will say something otherwise..because he doesn't know himself.
Dear God I wish I could edit the word interested.

I am reading books on investing, posting on investing forums and asking for help. Of course I am already interested.
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02-04-2012 , 08:10 PM
if you are just investing in a "specific area," you will not be able to diversify your portfolio...
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02-05-2012 , 12:19 AM
Read the books from the "what should I read" thread, then come back and bump this thread with more specific questions if you are still interested.
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02-05-2012 , 12:10 PM
Quote:
Originally Posted by oofRome
the single most significant thing I ever did that determined my career path in finance was by playing a "stock market game", where I was given $1m of hypothetical dollars and was allowed to simulate trades in real time on the markets. The first one I did was in high school, and I ended up losing more money than anyone else in the class.
I would say these simulations were important for me as well but when I participated they used to have good cash prizes. As such my goal was to win them so I used strategies that I would never use in a situation where it was basically all or nothing.
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02-05-2012 , 01:11 PM
Our prize was a all-expense paid trip to Wall Street (and maybe some cash?). It was a nation-wide game with any high school that paid the fee. I remember short selling a micro-cap oil company after a massive 2 or 3 day rally. They kept going though, and I lost big.

Would be fun to do again. There are better ways to lose money fast than just a simple naked short, right henry?

Last edited by oofRome; 02-05-2012 at 01:16 PM.
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