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Message
Tips for a Young Investor
Posted on 10/8/13 at 10:51 pm
Posted on 10/8/13 at 10:51 pm
I've been reading this board and many others like it for a few years and about a year ago I started my 401k along with a small investment account my dad let me manage for him. I have a great return on his account and he Is letting me keep some of the profits. Right now I'm an engineering major and I'm not sure if I should switch majors or just go to grad school for finance once I'm done. I'd like to have the engineering degree but I have a passion and talent for investing. Any advice on what I should do? Also, I'm looking to dip my toes into commodity trading so any advice with that would be appreciated also. Thanks MB
11
Posted on 10/8/13 at 11:29 pm to FloridaMike
Welcome.
-TO
-TO
Posted on 10/9/13 at 5:27 am to FloridaMike
1. Finish your engineering degree.
2. Go to Tulane for grad school and do the Energy Finance program.
3. Move to Houston.
4. Become an energy trader.
2. Go to Tulane for grad school and do the Energy Finance program.
3. Move to Houston.
4. Become an energy trader.
Posted on 10/9/13 at 8:54 am to FloridaMike
Investing: Putting money into a ownership stake of a business that you understand and having a "share" of the future earnings. This is a long term process. This requires understanding
"VALUE" versus "PRICE"
Speculating: Betting money on the increase or decrease of the "PRICE" of a security. This is mostly a short term deal and may or may not relate to "VALUE".
Learn the difference. You can make money, or lose money either way.
Good luck.
"VALUE" versus "PRICE"
Speculating: Betting money on the increase or decrease of the "PRICE" of a security. This is mostly a short term deal and may or may not relate to "VALUE".
Learn the difference. You can make money, or lose money either way.
Good luck.
Posted on 10/9/13 at 9:34 am to Cantstandya
quote:
Finish your engineering degree.
2. Go to Tulane for grad school and do the Energy Finance program.
3. Move to Houston.
4. Become an energy trader.
This. All of this.
Posted on 10/9/13 at 10:18 am to FloridaMike
"Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497."
-W.B.
-W.B.
Posted on 10/9/13 at 12:10 pm to FloridaMike
I would like advice on staring a career in investing as well. How do y'all make investment decisions, is it by using behavioral finance theories or is it more formulas and algorithms? Obviously they are both used to some extent, but which is more important. I have heard of people graduating in Psychology and starting their own hedge fund and becoming very successful.
Posted on 10/9/13 at 12:30 pm to FloridaMike
quote:
Also, I'm looking to dip my toes into commodity trading so any advice with that would be appreciated also.
Learn and understand the contracts, margins and leverage.
Read TRADING BY THE BOOK by JOE ROSS. Once you have a understanding of technical charts and indicators along with fundamentals.........
paper trade.
try to find a few commodities you are good at and stick with them. Sometimes trying to do too many commodities can and will bite you in the arse.
Posted on 10/9/13 at 12:35 pm to Cantstandya
quote:
1. Finish your engineering degree.
2. Go to Tulane for grad school and do the Energy Finance program.
3. Move to Houston.
4. Become an energy trader.
Solid advice right there.
Posted on 10/9/13 at 12:52 pm to Turkey_Creek_Tiger
quote:
I have heard of people graduating in Psychology and starting their own hedge fund and becoming very successful.
If you set up a single-elimination tournament ladder for, say 10,000 people, and you ran the tournament with the competition being flipping coins, one person is guaranteed to win. 5 people are guaranteed to finish in the top 5. 10 people are guaranteed to finish in the top 10. Are those people expert coin-flippers? They'd be famous, if people cared about your tournament.
I've heard of a hell of a lot of people graduating in Psychology and not being successful hedge fund managers, too.
Posted on 10/9/13 at 1:00 pm to FloridaMike
Practical tips to consider:
Most people will say if you're young you can afford to be aggressive -- the bigger wins in some years will make up for the big losses in others and you'll end up ahead. Turn that advice upside down; if you'll be an investor for a long time, you can afford to be conservative and just pick up an easy 6 or 7 or 8 % with little effort and little stress. Over time that will make you rich, too.
Find some good companies with good dividend histories and invest in them. Set up your accounts with automatic dividend re-investment. Keep some cash around and when the price drops on one of your dividend-payers, invest some more money.
As far as your major -- it's tough to decide sometimes, and you probably won't get really good advice. You'll have to decide what you care about, what will make you happy, what you expect from a school. That decision is just too personal for us to tell you what it should be.
Most people will say if you're young you can afford to be aggressive -- the bigger wins in some years will make up for the big losses in others and you'll end up ahead. Turn that advice upside down; if you'll be an investor for a long time, you can afford to be conservative and just pick up an easy 6 or 7 or 8 % with little effort and little stress. Over time that will make you rich, too.
Find some good companies with good dividend histories and invest in them. Set up your accounts with automatic dividend re-investment. Keep some cash around and when the price drops on one of your dividend-payers, invest some more money.
As far as your major -- it's tough to decide sometimes, and you probably won't get really good advice. You'll have to decide what you care about, what will make you happy, what you expect from a school. That decision is just too personal for us to tell you what it should be.
Posted on 10/9/13 at 1:01 pm to tokenBoiler
quote:
If you set up a single-elimination tournament ladder for, say 10,000 people, and you ran the tournament with the competition being flipping coins, one person is guaranteed to win. 5 people are guaranteed to finish in the top 5. 10 people are guaranteed to finish in the top 10. Are those people expert coin-flippers? They'd be famous, if people cared about your tournament.
I've heard of a hell of a lot of people graduating in Psychology and not being successful hedge fund managers, too.
I didn't know, I was just wondering how useful that degree can be in the investing world.
Posted on 10/9/13 at 1:09 pm to Turkey_Creek_Tiger
quote:
I didn't know, I was just wondering how useful that degree can be in the investing world.
I don't really know either; just pointing out that having (possibly temporary) success as a stock-picker doesn't necessarily imply great intelligence or great financial wisdom or anything else.
I'd guess that the actual major is pretty irrelevant, what counts would be learning how to think critically and incorporate new data into an existing model; possibly being willing and competent to modify the model to accommodate the new data. It all SOUNDS psychological, but I've got no idea if a Psych major learns how to do things like that any better than anybody else in College.
Posted on 10/9/13 at 1:10 pm to tokenBoiler
quote:
As far as your major -- it's tough to decide sometimes, and you probably won't get really good advice. You'll have to decide what you care about, what will make you happy, what you expect from a school. That decision is just too personal for us to tell you what it should be.
so there is not a certain major(s) that is overwhelmingly useful for investing compared to others
Posted on 10/9/13 at 1:17 pm to FloridaMike
quote:Only buy stocks that are going to go up.
Any advice on what I should do?
If that doesn't work for you, then just follow J. Paul Getty's advice on how to get rich:
1. Get up early each day.
2. Work hard.
3. Strike oil.
Posted on 10/9/13 at 1:27 pm to LSURussian
Posted on 10/9/13 at 1:59 pm to Turkey_Creek_Tiger
quote:
I didn't know, I was just wondering how useful that degree can be in the investing world.
Not really that useful. You can learn behavioral finance through self-education and basic common sense/logic. Unless it's from a top school, it's not likely to look too great to prospective investors either.
Posted on 10/9/13 at 5:05 pm to acgeaux129
This
quote:
Not really that useful. You can learn behavioral finance through self-education and basic common sense/logic. Unless it's from a top school, it's not likely to look too great to prospective investors either.
Posted on 10/9/13 at 8:29 pm to Douglas Quaid
quote:
1. Finish your engineering degree.
2. Go to Tulane for grad school and do the Energy Finance program.
3. Move to Houston.
4. Become an energy trader.
5. frick Bitches
Posted on 10/9/13 at 10:53 pm to FloridaMike
Blue Horseshoe loves Anacott Steel.
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