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best way to become an equities trader?

Gray_Fox_86

Gray_Fox_86

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Hi,
I was wondering if any of you were in the know could lend me some assistance. I want to trade stocks professionally. And I was wondering what would be the best method on achieving this, and if i needed to be licensed to trade stocks, and if a trading company says that i need to put some of my own money in, are they trying to screw me over? I'll be done with school by summer and its a bachelor in history.
 
stalin_was_a_nice_being said:
Hi,
I was wondering if any of you were in the know could lend me some assistance. I want to trade stocks professionally. And I was wondering what would be the best method on achieving this, and if i needed to be licensed to trade stocks, and if a trading company says that i need to put some of my own money in, are they trying to screw me over? I'll be done with school by summer and its a bachelor in history.
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Apply to Goldman/JPM/etc.?
 
RightinNYC said:
Apply to Goldman/JPM/etc.?
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hmmm....I don't have a degree with anything related to business, but I do have four years of experience with trading stocks. I lost all my money though.
 
stalin_was_a_nice_being said:
Hi,
I was wondering if any of you were in the know could lend me some assistance. I want to trade stocks professionally. And I was wondering what would be the best method on achieving this, and if i needed to be licensed to trade stocks, and if a trading company says that i need to put some of my own money in, are they trying to screw me over? I'll be done with school by summer and its a bachelor in history.
Click to expand...

Some companies have traders use their own money, so that doesn't necessarily mean someone is trying to screw you; my friend, a former options trader, was offered such a job, though he didn't take it. Research the company and see if they are licensed by the government, or just call the government and ask them.

As to your other questions, I think you need a license to trade over certain mediums but not all of them; for instance, you can trade online without a license, but if you want to be a "professional" trader then you need to get a degree in economics from an accredited learning institution; additionally, you will probably require board certification as a trader and a government license to that effect.

If I were you I'd just get a degree in finance/accounting instead.
 
stalin_was_a_nice_being said:
....money?
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I guess I just don't understand what you're saying. You invested your own money, but it didn't work out. What makes you think you'll be particularly good at this? If you can't get hired anyplace that will pay you to trade other people's money (which is really the only way to make money), why would you still want to do this?

I will say that places like GS and JPM won't automatically write you off just because you have a history degree, though it will be hard.
 
I am going to make a guess that you do not have your series 4 and series 7 (integral for working in large trading operations such as Goldman Sachs), and cannot get the sponsorship needed to become accredited. This is a common dilemma faced by many of those who have proper accredited degrees as well, so you are not in a lonely boat.

You can however obtain your series 66 (but does not apply until you receive your 7) license without a FINRA sponsor which can do wonders in getting your foot in the door. For about $100 bucks including study material you cannot beat it as a reference booster.

If you can snag a few interviews and even if you do not get the position, it is generally very good experience that will help you out down the road. Just stay persistent. Internships can be a great vaulting mechanism as well (along with their interviews!).

Once you get hired on a FINRA firm, they will most likely put forth the resources for you to obtain your whole list of series 6 licenses, along with your series 4 and 7.
 
RightinNYC said:
I guess I just don't understand what you're saying. You invested your own money, but it didn't work out. What makes you think you'll be particularly good at this? If you can't get hired anyplace that will pay you to trade other people's money (which is really the only way to make money), why would you still want to do this?

I will say that places like GS and JPM won't automatically write you off just because you have a history degree, though it will be hard.
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I lost a lot of money because I listened to people on forums which made me really stupid. I picked many winning stocks that trippled in value in one year or 40% in a couple of months. I just foolishly stayed because by that time I had lost so much money that I was hoping for these stocks to give me back at least the original amount invested.
 
stalin_was_a_nice_being said:
I lost a lot of money because I listened to people on forums which made me really stupid. I picked many winning stocks that trippled in value in one year or 40% in a couple of months. I just foolishly stayed because by that time I had lost so much money that I was hoping for these stocks to give me back at least the original amount invested.
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You listened to people on forums? Do you think they're looking out for *your* money?
 
Arch Enemy said:
You listened to people on forums? Do you think they're looking out for *your* money?
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No. I didn't but when that happened I had lost so much of my original money because I had the "too early" touch. Which meant I sold many of my stocks for a lost and add 13$ for commision. It shranked fast. Much of the stocks I kept a look after. And many rose 140-500% in value in a year.
So when these people said not to sell, I listened. I know very stupid huh?
 
stalin_was_a_nice_being said:
I lost a lot of money because I listened to people on forums which made me really stupid. I picked many winning stocks that trippled in value in one year or 40% in a couple of months. I just foolishly stayed because by that time I had lost so much money that I was hoping for these stocks to give me back at least the original amount invested.
Click to expand...

This may not be the advice you want to hear, but there are probably a million bankrupt day traders who have said the exact same thing. If you picked a stock that went up and then back down before you sold it, you didn't pick a winner, no matter how high it went.
 
RightinNYC said:
This may not be the advice you want to hear, but there are probably a million bankrupt day traders who have said the exact same thing. If you picked a stock that went up and then back down before you sold it, you didn't pick a winner, no matter how high it went.
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yeah I know. But I think the second time around I will do better. Hopefully. Pray for me?:p
 
stalin_was_a_nice_being said:
Hi,
I was wondering if any of you were in the know could lend me some assistance. I want to trade stocks professionally. And I was wondering what would be the best method on achieving this, and if i needed to be licensed to trade stocks, and if a trading company says that i need to put some of my own money in, are they trying to screw me over? I'll be done with school by summer and its a bachelor in history.
Click to expand...

When someone asked "why" that was probably the best question.

If you really wanted to do it-- you probably already would have (assuming you're at least a young adult).

I was a professional trader for a Wall St firm for 20 years. Now trade (NOT 'Day trade') for myself and one Wealthy individual.
But I KNEW I wanted to do it and was interested since I got stock as a gift when I was 13.
By 18 I speculated in some options.
I would have done it for nothing- a video game for real bucks I was good at.

Trading is a knack- not a matter of intelligence or even math per se.
Good Day traders are more like speed-chess players (or bookies) than Economists.
Able to quickly size up and act.

Of course, as a day trader who just wants to be one.. you're probably going to get your ass kicked by people and firms you're trading agianst who have more knowledge and power to move a stock than you ever will.
Though I and some others I know just use a small universe of (mostly small) stocks we know well and can 'trade them' when they are relatively low or high. But not hourly. Say over a 2 month to 12 month horizon.
(stretching to 366 days/Capital gains can cut your tax rate from 38% to 15%.. another subject/tactic)

But one can be a stock trader on a more sound/Long term fundamental basis. (aka 'investing')
Using things like stock screeners-- finding small and mid-size companies with good balance sheets and good prospects at decent prices.
A Little Buffett, but with a shorter horizon if you want.
You can learn options and use them in coordination with the stocks as well.

just some thoughts.
 
Last edited:
In other words,

You have to have Wall street smarts
 
mbig said:
When someone asked "why" that was probably the best question.

If you really wanted to do it-- you probably already would have (assuming you're at least a young adult).

I was a professional trader for a Wall St firm for 20 years. Now trade (NOT 'Day trade') for myself and one Wealthy individual.
But I KNEW I wanted to do it and was interested since I got stock as a gift when I was 13.
By 18 I speculated in some options.
I would have done it for nothing- a video game for real bucks I was good at.

Trading is a knack- not a matter of intelligence or even math per se.
Good Day traders are more like speed-chess players (or bookies) than Economists.
Able to quickly size up and act.

Of course, as a day trader who just wants to be one.. you're probably going to get your ass kicked by people and firms you're trading agianst who have more knowledge and power to move a stock than you ever will.
Though I and some others I know just use a small universe of (mostly small) stocks we know well and can 'trade them' when they are relatively low or high. But not hourly. Say over a 2 month to 12 month horizon.
(stretching to 366 days/Capital gains can cut your tax rate from 38% to 15%.. another subject/tactic)

But one can be a stock trader on a more sound/Long term fundamental basis. (aka 'investing')
Using things like stock screeners-- finding small and mid-size companies with good balance sheets and good prospects at decent prices.
A Little Buffett, but with a shorter horizon if you want.
You can learn options and use them in coordination with the stocks as well.

just some thoughts.
Click to expand...

That's what I did! I invested in small company stocks like SNTS, ETRM, CTIC. And I did make a decent gain. I don't stay for too long in those stocks which was MY MISTAKE. For SNTS I sold for a 40% profit. And for CTIC I should have sold for a 75% profit but I didn't because some people on the internet said it would go higher because of their drug. And it never did instead it went say down. I sold for 12% profit. And ETRM I sold for a 13% profit. I invest in small companies that have good prospects and are cheap. It worked out. I think I should have stayed longer in the stock market, and put more money in.

One MAJOR regret was HGSI. It went to .79 cents and I decided to buy CTIC instead. Because of some guy in the internet told me to do so. Bad mistake. HGSI is now at 28$. I would have made serious money, but I got out of the stock market because ran out of money and mostly patience.
 
stalin_was_a_nice_being said:
That's what I did! I invested in small company stocks like SNTS, ETRM, CTIC. And I did make a decent gain. I don't stay for too long in those stocks which was MY MISTAKE. For SNTS I sold for a 40% profit. And for CTIC I should have sold for a 75% profit but I didn't because some people on the internet said it would go higher because of their drug. And it never did instead it went say down. I sold for 12% profit. And ETRM I sold for a 13% profit. I invest in small companies that have good prospects and are cheap. It worked out. I think I should have stayed longer in the stock market, and put more money in.

One MAJOR regret was HGSI. It went to .79 cents and I decided to buy CTIC instead. Because of some guy in the internet told me to do so. Bad mistake. HGSI is now at 28$. I would have made serious money, but I got out of the stock market because ran out of money and mostly patience.
Click to expand...

I got clobbered on stock recommendation from a friend. I should have known to just lock my profit in.
 
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