TOPIC: Price of Stock v. Price of Gold (Calling Logan)

Thanks for the kind words but I mean this... If my ass with an 8th grade level math education and being a fuck up 90% of my time on this planet you can do it man....

It's a lucrative ass field because their is massive money to be make but a shitload to be load it doesnt happen fast it takes years of dedication. What I was able to "cram" into a few years of just grinding 16 hours a day non stop practicing on trading someone could not do if they had a full time job, family, friends, or really unless your LIFE IS TRADING I wouldnt be where I am currently in such a short period of time. Just think of it as maybe getting say a PHD... realize the next 8+ years will be learning some intense shit but when you get out you will be compensated a 6 figure salary OR just straight up go nuts like I did but I don't reccomend that route...

BeastModeAllDay wrote: Thanks for the kind words but I mean this... If my ass with an 8th grade level math education and being a fuck up 90% of my time on this planet you can do it man....

It's a lucrative ass field because their is massive money to be make but a shitload to be load it doesnt happen fast it takes years of dedication. What I was able to "cram" into a few years of just grinding 16 hours a day non stop practicing on trading someone could not do if they had a full time job, family, friends, or really unless your LIFE IS TRADING I wouldnt be where I am currently in such a short period of time. Just think of it as maybe getting say a PHD... realize the next 8+ years will be learning some intense shit but when you get out you will be compensated a 6 figure salary OR just straight up go nuts like I did but I don't reccomend that route...

What do you usually look for when you pick stocks and when you exit a trade? How do you manage risk?

I know there is probably a lot to your strategy. I'm just curious about your general method.

100% agree with you beastmode. It's a stress full job but I cant think of many other jobs that give you that rush and addiction. Where theres a will, theres a way.

Logan, read my trading diary from when I was lucky enough to find a trading mentor. I went from an amature to doing pretty well on the European DAX. It was all sim trading but in a matter of months, my stats were really good and i was up like 14k Euro.

www.asiaonthebid.com/showthread.php/263-...er-(mentor-lesson-1)

There might be stuff about risk management etc,

Anyone considering investing in stocks, bonds, gold or whatever would do themselves a big favor by visiting tastytrade.com. It is an "On-line financial network" that is alternative to Yahoo Finance, Barrons, Forbes, Bloomberg, etc.

I am not affiliated with the site in any way. I've just learned a ton from them. Between sitting around and trading stocks, options and futures all day, they provide education on what they do and how they do it. The founder, Tom Sosnoff, was a floor trader on the CBOE (Chicao Board Options Exchange) for 20 years or so, then co-founded the Think or Swim on-line brokerage. According to Wikipedia, his take when he sold it to TD Ameritrade was $66 million.

At first, a lot of what they do will be unintelligible, but if you stick with it, it all makes sense.

Some of the basic principles:

1, The most important characteristic of a potential trade/investment is liquidity (narrow bid/ask spread). Otherwise you have to give up so much moving in and out and paying commissions that its nearly impossible to make money.
2. Stay "small" (never put all your eggs in one basket)
3. Trade often - put on high probability trades and let the law of large numbers work in your favor. Tip: buying a stock, fund or commodity is a 50% probability investment - it just as likely to go down as up. No matter how good a company is, if the market tanks, its stock most likely goes down.
4. Use "non-correlated underlyings" - things that don't move together: Stocks/bonds/commodities/currencies. It's okay to mix long and short positions - that's better diversification than offered by traditional portfolio allocations.
5. Reduce cost basis by selling something against things you own (covered calls are the simplest example).
6. Volatility is more reliably mean reverting than price.
7. High volatility plus price extreme equals opportunity.

The have videos covering basic and advanced option and futures strategies (there are also good books on these - reading a book plus watching videos can make learning faster) and daily commentaries.

This year I've made over 2,000 trades and done okay - I won't get the 30%+ annual return I'm looking for this year, but I'm still learning and doing a lot better than any of the stock indexes. And I'm doing way better than if I had stayed in my old Vanguard account.