Ask HN: I want to get into stocks and options

3 pointsDonkeyChan10y ago9 comments

I know this may seem like not a thing to ask in this forum but I think it's the PERFECT place to ask. A bunch of technically apt people seem like the perfect place to pose this. What platforms for stocks and options do you all see as "the best"? Low cost, maybe has a scripting language built in. Trustworthiness. What resources should I gather together and learn? What kind of pitfalls should I look out for? This seems like the perfect system to take apart and learn about.

9 comments

andriesm10y ago

Metatrader has an excellent programming platform, for writing your own technical indicators and building automated trading.

Problem is: don't do it.

I agree with the others.

As someone that has spent years trading stocks futures and warrants(a kind of option)...

And as someone who has read roughly a 100 books on trading, markets, investing, predictive finance...

And as someone who spent 5 years trying to write automated technical trader bots....

(And sought out and paid trading "experts" to learn from them in person)

I'm telling you: Don't do it.

The markets are pretty efficient.

Making money by trading is very very hard work.

You have significantly better odds with buying and holding high growth blue chips.

I know you want to trade.

But reconsider: at least paper trade for a year - this will open your eyes - and prove whether you are serious about becoming a professional, or just a dabbler about to lose a painful amount of money.

DonkeyChanOP10y ago

Thank you very much. Everything inside me tells me that it's exactly what you said, an efficient system and luck plays more of a factor than anything else (besides having a giant amount of capital). What kind of informational resources do you suggest? BTW I've been paper trading for well over a year now, I never feel like I have enough knowledge to "pull the trigger" with real money. Metatrader was one of the ones I looked at. What are your thoughts about ForEx? I consider it MORE risky than day trading especially when you don't have the capital. But I'm taking all input. Thanks again!

Tomte10y ago

"Scripting" and "platform" sounds like you're planning to do active day-trading.

Don't do that. It's as simple as that.

DonkeyChanOP10y ago

I can see an API being useful for more than placing trades and I see a platform as an entire framework of information sources, knowledge bases, data, and of course the actual broker. My intention is medium to long term investment but I don't want to shut any avenue out so I'm open to information, advice, and experience on basically any facet. That includes day trading but I'm not leaning that direction.

DonkeyChanOP10y ago

I just want to blanket thank everyone who commented on such a low ranked question. I sincerely appreciate everyone's time and I thank you all, the opinions and information was exactly what I needed and you guys replying to such a low ranked question really means a lot to me.

chmielewski10y ago

Regarding scripting, analysis may be of more use than "bots": http://dirk.eddelbuettel.com/code/rblpapi.html

Other than that, I recommend opening a debit account with TIAA-CREF.org and going from there.

DonkeyChanOP10y ago

Yes, analysis is exactly what I was thinking. Thank you very much This is exactly the kind of resource I needed!

brudgers10y ago

{random advice from the internet}

The pitfall is to imagine beating the pros is likely both directly out of their money or indirectly by separating amateurs from their money.

That's not to say it isn't easy to make a small fortune. All it takes is starting with a large one.

Good luck.

DonkeyChanOP10y ago

Haha, yeah. If you have enough money you can safely use it to make more. Here's hoping! I'm striving for small, but consistent returns over time. Thanks!

j / k navigate · click thread line to collapse

9 comments

andriesm10y ago

Metatrader has an excellent programming platform, for writing your own technical indicators and building automated trading.

Problem is: don't do it.

I agree with the others.

As someone that has spent years trading stocks futures and warrants(a kind of option)...

And as someone who has read roughly a 100 books on trading, markets, investing, predictive finance...

And as someone who spent 5 years trying to write automated technical trader bots....

(And sought out and paid trading "experts" to learn from them in person)

I'm telling you: Don't do it.

The markets are pretty efficient.

Making money by trading is very very hard work.

You have significantly better odds with buying and holding high growth blue chips.

I know you want to trade.

DonkeyChanOP10y ago

Tomte10y ago

"Scripting" and "platform" sounds like you're planning to do active day-trading.

Don't do that. It's as simple as that.

DonkeyChanOP10y ago

chmielewski10y ago

Regarding scripting, analysis may be of more use than "bots": http://dirk.eddelbuettel.com/code/rblpapi.html

Other than that, I recommend opening a debit account with TIAA-CREF.org and going from there.

DonkeyChanOP10y ago

Yes, analysis is exactly what I was thinking. Thank you very much This is exactly the kind of resource I needed!

brudgers10y ago

{random advice from the internet}

The pitfall is to imagine beating the pros is likely both directly out of their money or indirectly by separating amateurs from their money.

That's not to say it isn't easy to make a small fortune. All it takes is starting with a large one.

Good luck.

DonkeyChanOP10y ago

Haha, yeah. If you have enough money you can safely use it to make more. Here's hoping! I'm striving for small, but consistent returns over time. Thanks!

j / k navigate · click thread line to collapse