Do you have any advice for a novice day trader/investor?
I'm a non experienced day trader and investor. I'm planning to attend an online investing school that's going to teach me how to trade forex, futures, etc. Where should I start to be a consistent, profitable, successful day trader/investor. The schools I'm planning to attend are Day Trading Academy, School Of Trade, Maverickfx, and Trading Advantage. Do you know if any of these schools are reputable, reliable, and trust worthy?
First, you should be commended for wanting to learn more about investing. I’m 100% for learning about capital markets, how they work and the principles of investing. While I won’t dissuade you from taking any of the aforementioned courses, I will make a few comments.
Day trading is a highly speculative endeavor that pits you against millions of other market participants seeking to profit from fundamental mispricing’s or technical analysis. In order to be successful you would have to believe that you knew something that millions of others didn’t. For arguments sake, lets suggest that you did. What are the chances that you will be able to act on that information prior to everyone else? News travels in milliseconds and even small mispricing’s can be arbitraged away very quickly.
I don’t have much advice for speculators largely due to the huge amounts of evidence suggesting you’re highly unlikely to outperform the market. Furthermore, even if you did, it would take years to determine whether your efforts were the result of skill or luck.
Lots of charts or data mining systems appear intuitive in hindsight. I tend to be skeptical of any company selling their methodology on becoming a profitable day trader. After all, if they truly had a formula that produced superior results, it would stand to reason that teaching it to others would only diminish its value because everyone would use it.
Happy St. Patty’s Day!
To be consistently profitable, my advice is to be an investor, not a day-trader.
Day traders make money by trading securities based upon their forecasts of future price movement. The trouble is that no one can predict future price movements. Day trading is quite akin to gambling, including the "house odds", which for the day trader are the costs of trading. Most day traders lose money over time, just as most gamblers do.
An investor does not make money by trading, but rather by owning profitable companies. A widely diversified portfolio of equity securities held over long time periods is almost certain to increase in value.
If you decide to day trade, I would do it as entertainment. For me, it is not so entertaining to throw money away on day trading schemes or slot machines.
Day trading is not a good idea if the purpose is to make money. It is gambling, an activity that provides an adrenalin rush but is virtually assured of costing you money.
In this instance the only people who make money with this scheme are the “schools” who will teach you the mechanics of trading. Check out the Ripoff Report.
Just out of curiosity, what prompted your interest in trading?