Your Questions About Successful Traders

Sharon asks…

What’s stopping other traders from simply copying the same portfolio investment strategies as the “Big Names”?

For instance, why couldn’t someone just visit a site like this:
http://www.gurufocus.com/holdings.php
(which follows the investment portfolio of arguably the most famous and successful trader known today, Warren Buffett)

Couldn’t they then simply ask their stockbroker for the same stocks, but in amounts they can afford?

John answers:

Most people dont have the patience to build their wealth over the course of 15 or more years. Professional portfolios are usually managed for long term growth.

Donna asks…

Out of all forex traders, what percentage are successful and can someone reference it?

John answers:

10 percent are successful and 90 percent aren’t. No reference.

George asks…

How can i become a successful investment banker?

Im 14 and i go to st. johns prep in Danvers, MA. I have always been interested in stats, stocks, and money. I want to go to Harvard or somewhere near NYC. I also want to work for Goldman Sachs. MY uncle is a successful trader and i don’t know if I should work in his company as an intern. What should I do?

John answers:

Relatives LOVE to be asked Qs and to give their opinions. You could AND should ask your uncle to be your mentor.

Sit down with him and tell him the same things you mentioned in your Q. Make a list of ALL the Qs you think are important. Then ask him those Qs.

He might give you some insight as to what really goes on – as he sees things from his perspective. Except for a small investment of time, you have absolutely nothing to lose – AND A WHOLE LOT to gain and learn!

Thanks for asking your Q! I enjoyed answering it!

VTY,
Ron Berue
Yes, that is my real last name!

Thomas asks…

is there anyone who can point me in the right direction to become a successful trader in the stock market ?

Im a 17 year old who is very interested in the stock market but i dnt know where to start so i need some 1 to help point me in the right direction so i can be a successful trader. Thanks

John answers:

Before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself.

Start your education by learning why you should invest and the importance of being able to make your own decisions or how the pro’s make theirs.

Here is some reading material that can get you started in the right direction,
The first book you should read is Rich Dad Poor Dad by Robert Kiyosaki
Then try some of these
What Works on Wall Street by James O’Shaunessey
Beating the Street by Peter Lynch
One Up on Wall Street by Peter Lynch
The Warren Buffett Way by Robert Hagstrom
Trading For a Living by Alexander Elder
Mastering the Trade” by John Caster
How to Make Money in Stocks” by William O’Neil
24 Essential Lessons for Investment Success by William O’Neil
The Disciplined Trader by Mark Douglas

Get into the habit of making daily visits to some websites like MSN Money and Yahoo Finance. (http://moneycentral.msn.com/home.asp http://finance.yahoo.com/ )

While at MSN following the strategy lab analysts to get a feel for what the pros are doing and why. This site has some basic information for beginners. If any site offers free information, take it.

Other website that can provide instructions and help with procedures and terminology are
Investopedia – http://www.investopedia.com/ Stock Charts – http://stockcharts.com/
http://www.investorshub.com/ http://www.1source4stocks.com/

Visit some of the more professional websites like Zacks – http://www.zacks.com/
Smart Money – http://www.smartmoney.com/ Schaeffer’s – http://www.schaeffersresearch.com/
Some of these web sites will have advertisers who are worth looking into also. And remember, if they offer free information, get it.

Attend all the free seminars you can, just be careful and don’t get pressured into anything you really don’t want or need. Most schools offer courses in finance and economics, but very few will have courses on the mechanics of the investment markets, if they do try taking the course. You may want to consider on-line courses, the New York Institute of Finance use to have such courses. Try to get some fee information from the stocks exchanges they all have (had) free booklets, SIAC and some of the regulators (FINRA SEC MSRB CBOE) may provide some free literature.

What do you need to go into the market?
1 – A written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself.
2 – Sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you trade/invest.
3 – A written money management program in place. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested.
4 – A full and complete understanding of the rules & regulations of the industry.

You at least have made the right decision to start investing, this is the first big step and it won’t be your last. Keep taking those steps forward and along the way never take the advice from people that are not in the market or try to tell you not to invest. Good luck on your journey

Mary asks…

How can I become a successful Trader in Foreign Currencies?

I am a Civil Servant and seeking opportunities to live freely under my own terms. After much consideration, I believe my interest is to Speculate and Trade in Foreign Currencies. I had no previous experience and have not even gotten started. In this regard, I am seeking helpful information to enable me make a good start

John answers:

Spend some time reading books. You can lose thousands quickly in forex, so spending a hundred on e few books really isn’t that much. Large bookstores usually have several. Then there is Amazon. Then spend some time using he trial account that all big forex sites have for free, so that you are sure that you understand the software. Try several. It’s a very competitive industry, so they all offer the same services, but the software implements it differently, so you need to find one that you understand easily and are comfortable with.

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