We have all head stories of the guy or girl who said how they made their first fortune while trading in college. I happened to know one of these traders and like all super stars in any field they are part of the very small group.
If you want to start your trading career while still in college this is how I would tell my own children to do it.
First remember your main job in college is to be a college student. The cost of college is not getting any cheaper and you must stay focused on your schoolwork. Trading in college should be a hobby. With that being said. There are many college that have mock trading competition this is a good way to get a general understand of the markets, the trading terms and placing orders correctly. This can help you avoid mistakes in the future. The most import thing to understand as a novice trader it that mistakes can cost you a lot of money, and very quickly.
The next step would be to open an on line trading account. STAY AWAY from commodities for now. It takes time to really understand the risk that goes along with commodities. I know that its sexy to say you bought gold but in the long run making money is more important then how it sounds when you talk to your friends. In commodities the speed in which money can be made or lost is must faster and most new traders do not have the reaction time fast enough to compete.
When you open an on line account such as E*TRADE they will give you more then enough tools to work with to learn and get use to being in the real market. All on line trading companies have sections to help you learn how to trade or sign up on my web site with your email and I will send you my trading tips eBook.
Trust me there is nothing you have ever done that will be like trading. The highs and the lows are extreme and all those over night success stories are just that. Stories.
What is not told are the countless traders who have blown out quickly because they didn’t take the time to learn the fundamentals and rushed in to trades that ended up being bigger then their account?
The list below gives you pointers to start your trading career.
1. Open a account just go to E*TRADE, Scottrade or Schwab
Make sure it is with money you are able to afford to lose
2. Try some small trades
Small trades will help you get a feel for what you are doing and will not cost you much if you are wrong
3. As you feel more comfortable increase you size
Once you find you are having more days making money then losing increase the amount of shares you buy or sell
4. Expect to have losing trades (its okay, everyone does)
5. Make some trades from both the long and short side
To make money in all types of markets you need to lean how to trade from the short side. Selling stock before you own it with the thought the market will go down. Look for “ The Trading Shrink “ webinar coming soon to www.greenbergcapital.com on this topic
6. Realize that markets never just go in one direction
7. Understand there is money to be made in a down market
8. Take it slow, steady and easy. Do not try to be a hero
9. Never think you have figured out the market, when you feel that way, the market has a unique way of reminding you who is boss.
And, finally, Remember you are in college this is a hobby that in time can grow. Singles add up and traders who swing for the fence usually get blown out. Take your time enjoy college and your new hobby.
Sign up for my trading tips and webinar at www.greenbergcapital.com