Day Trading for Beginners - any tips for getting started?

[BionicComma]

I just had a very good night at the tournament table and now that I'm ITM, so to speak, I would like to parlay my funds into something other than a poker bankroll. I have been considering day trading as well as real estate for quite a while, but as I lack the financial resources to confidently get involved with the loans I'd need to start buying property, the stock market is looking like a good option. If that kid from the apprentice who's around my age can do it at 18, surely I can do it now.

Does anyone have some good advice on how to get started? Are there any books on the topic that are helpful / trustworthy / recommended?

I have tried searching the internet for info but looking for good tips on getting into stock trading is like using Google to look for advice on weight loss: lots of people ad-farming for lots of other people trying to sell you snake oil.

Any tips pointing me the right way would be appreciated.

[gull]

My advice is don't.

If you really do want to experiment and learn, then start with a play money account and slowly risk a small amount at the beginning.

[BionicComma]

[ QUOTE ]
My advice is don't.

If you really do want to experiment and learn, then start with a play money account and slowly risk a small amount at the beginning.

[/ QUOTE ]

Is there software / a site for doing this?

Basically I have a sum of money that I would like to grow quickly and I am not perturbed by high immediate risk as long as I can make smart decisions in the process.

[kimchi]

Don't bother day trading. You'll get a better return for your money at the casino - and at least they sometimes give you free drinks.

[snowbank]

[ QUOTE ]
Don't bother day trading. You'll get a better return for your money at the casino - and at least they sometimes give you free drinks.

[/ QUOTE ]

I find it hard to believe that people on a poker forum can be this closed minded, when the game that we play is the game that everyone else says, "don't, you'll lose your money." It's my understanding that a very small % of poker players win, and that number is very similar to the number of traders that make money.

Trading is something I've been interested in at least finding out about, to see if I have an interest in it. I've seen a lot of these replies on the forums saying how "everyone loses, you'll go broke." That's what everyone told a lot of us when we started playing poker. If there's anyone besides the haterz out there, who know a good deal about making money trading, or know of people who make a lot trading I'd be interested in at least learning about it as well if anyone has info.

[kimchi]

[ QUOTE ]
[ QUOTE ]
Don't bother day trading. You'll get a better return for your money at the casino - and at least they sometimes give you free drinks.

[/ QUOTE ]

I find it hard to believe that people on a poker forum can be this closed minded, when the game that we play is the game that everyone else says, "don't, you'll lose your money." It's my understanding that a very small % of poker players win, and that number is very similar to the number of traders that make money.

Trading is something I've been interested in at least finding out about, to see if I have an interest in it. I've seen a lot of these replies on the forums saying how "everyone loses, you'll go broke." That's what everyone told a lot of us when we started playing poker. If there's anyone besides the haterz out there, who know a good deal about making money trading, or know of people who make a lot trading I'd be interested in at least learning about it as well if anyone has info.

[/ QUOTE ]

Trading can be profitable, but this guy is a beginner. I doubt he knows much about mutual funds/bonds/longer term trading.

Why would you suggest he skips the profitable (and beatable) low-stakes games and ploughs straight into the high-stakes where he will be against the pros.

If he wants to try trading, then I would suggest longer term trading starting with stocks. If he can beat that, then he can start increasing his opportunity advantage (assuming he has an edge) by decreasing his timeframe for trading.

For even the pros, a live quote screen is just an international one-arm bandit which they pump money into to relieve the boredom of longer-term trading (which is quite boring - like grinding the low-limits).

I stand by my initial recommendation to avoid playing the day-trading game for the OP. It's not closed-minded, it's sensible advice. I would have elaborated on my post, but I didn't feel it was necessary.

Did you start you poker career playing $2000NL? Or were you too open minded not to? Poker, like trading, can be very profitable. But you need to start sensibly. Beginning with day-trading in not sensible.

[Jeff W]

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any tips for getting started?

[/ QUOTE ]

Yeah. Don't.

[BionicComma]

Well with such sage advice (and thanks for it!), can anyone suggest a method for starting a little investment portfolio? Like I said, I have some money and want to diversify. I'm open for suggestions, I just don't know how to start.

[Jeff W]

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Well with such sage advice (and thanks for it!), can anyone suggest a method for starting a little investment portfolio? Like I said, I have some money and want to diversify. I'm open for suggestions, I just don't know how to start.

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Link

Link 2

Read All About Asset Allocation by Rick Ferri for further information if you like.

[gull]

[ QUOTE ]
Well with such sage advice (and thanks for it!), can anyone suggest a method for starting a little investment portfolio? Like I said, I have some money and want to diversify. I'm open for suggestions, I just don't know how to start.

[/ QUOTE ]

Good job for taking initiative and getting started. You're doing better than 90% of the people in the world. I would echo what Jeff W wrote above. The best way to invest is to avoid high-fee, high-taxed strategies. Index funds (or index-tracking ETFs) are the best way to invest your money. Index funds are great for a couple of reasons. They offer the returns that the stock market does (more than 10% per year, historically). However, they are have less risk than individual stocks. Movements of stocks are uncorrelated to a degree, so adding more and more stocks to a portfolio will decrease your variance while keeping your EV the same. It's works similarly to playing lots of hands in poker. Funds that track indexes are better than actively managed funds. They have lower expenses and are generally more tax-efficient. In aggregate, actively managed mutual funds trail the market's level of returns. In addition, it's impossible to pick the funds that will outperform in the future. Here are some websites that might or might not help you:

http://www.diehards.org/forum/index.php (the 2+2 of investing; many published authors and professionals post there)

ifa.com (this website has a very fancy, and very thorough guide to index funds)

iwillteachyoutoberich.com (this is a blog that has some very well-written introductory articles)

altruistfa.com/readingroom.htm (this webpage has many links to research papers; it has some advanced stuff, but it's more easy to navigate than the archives of a finance journal)