You're seventeen? You've got to be kidding. I usually don't see 40 + year olds ask such intelligent questions, when first starting out. I see a lot of 'eyes bigger than the stomache'. Or in the case of the markets, 'eyes bigger than their wallet'. My hat is off to you.
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Originally Posted by praisehim
1. Where do I go to find an "investing dictionary"? A place where all/most of the terms related to investing would be found (print or other me no care)
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I think others have answered this adequately. I really can't think of anything to add on that route.
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2. Biggest mistakes as a newbie, how you corrected them and how YOU WISHED you have corrected them
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Money management. Money management. Money management. Money management. Did I say money management?
When trading in the markets, you will notice that many people talk up one side and down the other about accuracy. This way of trading is X% accurate. This other way is x% accurate.
Let me let you in on a little truth.
Accuracy is over hyped. Not that it isn't important. It's highly important. But in actuality, it's probably the least important of the money management principles. Patero's principle states this to be so. You have traders with a good accuracy rate, and they always lose in the long run? Why? Because their risk reward ratio is 3:1 (They risk 3x's more than their reward) and their drawndown is 45% + and their trade management sucks. They were right about the market direction though.
Big whoop.
Without all money management principles firmly in hand, a trader is bound to lose. Accuracy isn't too hard to nail down. It's everything else that kills a trader in the long run. For example, most newbies get about $5,000.00, and look for a trade.
They then proceed to tie up $3500.00 of their account in the trade. They allow for a drawdown of $3800.00, and if they do manage to squeek out a profit of $300.00 - they then want to blame the system, when they eventually all their money in two months trading in such a manner?
Huh?
They weren't trading. They were gambling. They tied up all of their money. I recommend tying up no more than 3% of your account on any one trade. Their reward wasn't as great as their risk. They had no real plan of where to take their profits, etc. etc.
Money management principles will save your life when it comes to trading, and turn you from a gambler, to a businessman.
This is the lesson above all others, I wish I had known 12 years ago.
Scottrade - I started with them years back when they had the lowest commissions. Commissions can eat you alive, when you consider taxes are also taken out of whatever you make.
Zecco - I've been using them for about 2 months now. $0.00 commissions. The entire industry has been heading this way, and Zecco is the first to do it. The entire industry has been scaling back building their profits on commissions for some time. They make their money, as most brokerages do, from interest on your money. You can't daytrade with them (they will lock down your account if they believe you to be doing it). It's free of commissions, as long as you keep it under 10 per day, and under 40 trades per month.
Xpresstrade - I also engage in trading in Futures options. Took a lot to learn, but I've been doing well with it (I had Soybean Meal Puts last week. I've had a very, very nice week).
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4. Fundamental or technical and why?
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Both. As others have stated, when it comes to stock trading, I engage in fundamental analysis to find a good company, and technical to time my entry into the market.
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5. Trading journals, what are they, what do they do and SHOULD i keep one and why?
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Keep track of each trade you make. Why you made it. When you exit the trade, make any notes of what you learned. You should especially doing this starting out, because there is a lot to learn.
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6. Resources that I SHOULD be aware of and for what purpose (just in case the "and whys" were bugging ya!)
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Trading for real is a very psychological game. I never will forget the first trade I ever made. My lord, I was on an emotional roller coaster.
To take that away somewhat? Try an online / realtime simulator, such as
here.
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7. Any software that can ease trading, notable and trust worthy programs that would help a newbie like myself, additional tools etc.
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As others have mentioned, we're now in the age of the internet. Read, read, read. A lot to learn, but it's fun. The resources are almost limitless.
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8. Any other information that you KNOW would ease my path into the investing game
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Start small. Ease your way in. You might want to take a look at the Dogs of the DOW method. Especially since you are young. I personally use it, and it works over the long run (I actually combine Dogs of the DOW, with Seasonal tendencies and Dollar based investing in a wierd sort of hybrid). It's a great way to get your feet wet.
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THANK YOU FOR ANY AND ALL OF YOUR ANSWERS!
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You're welcome.
, then again im 17, maybe that has something to do with it LOL)
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