One of my main motivations in trading is to build a “social hedge fund.” More about that later. But in short, the idea is to help train people with financial need or ambition to trade. And then connect those traders with ordinary investors.
None of this is reinventing the wheel. Training traders is something that happens at prop shops and in investment banks. Connecting traders to investors happens in hedge funds and Vanguard, and lots of places.
However, at Vanguard you can not find a “market wizards” type hedge fund. And most “market wizards” are only accessible to high net worth individuals.
Also, I’m not aware of a prop shop that systematically reaches out through schools and the developing world, and markets the prospect of opportunity to anyone with the ambition to work at it.
But who knows what’s out there. There’s a lot I don’t know. This is just my working idea.
My idea is to self fund this as a charitable organization through my own trading profits.
But in the meantime, a friend of mine, Michael Strong, who runs a “entrepreneurial school” in Austin TX (among many other endeavors designed to promote entrepreneurial-ism all over the world) suggested we make a prototype of this program, and run it in his school.
With that in mind, I set out to create a sort of trading primer and resource list. I made an index of topics off the top of my head. As content for this fills out, I can make web page around it.
This is sort of like the blind leading the blind a little bit, if anyone were to follow me. I’m not an expert trader. I’m a trader in training myself, sharing things as I learn about them, and develop, rather than after mastery.
The below is by no means comprehensive. Just spitballing. If I’m lucky, or persistent, I’ll eventually get collaboration from more experienced traders.
- Common stock
- Long term investing (Warren Buffet style)
- Dividend investing
- Investor’s Business Daily style/trend investing
- Swing trading
- Day trading
- Penny stocks
- Large caps
- Options scalping
- Directional trading
- Non-directional trading
- Options spreads
- Selling premium
- Pump and dump
- Dumpster diving
Technical and fundamental trading
Psychology in trading
Charting, horizontal and trend support, flags
Price and volume
Market profile, volume profile
Reading the participants of the auction
Various time frame participants
Little fish (us) and whales (big funds)
Lagging indicators, RSI, Mac d etc
Fibonacci and fractals
Morality of trading
Lifestyle, meditation, health
Habits in trading, thought
The dream of the social brokerage and micro hedge funds
Mutual funds and traditional brokerages
Services scams and hype
Twitter and chat
The bond market, 3x the size of the stock market
News and economic indicators vis a vis trading and markets
The ocean of world capital and it’s currents
Total size of markets
How money and banking works
History and purpose of stocks, bonds, options, futures
Again, not comprehensive… a wiki might serve well here.
The trick here is to find traders and investors who are trying to make money actually trading, or do consistently make money from the markets, or already have made their fortune trading, and are genuinely interested in sharing their learning. Actual good people, who share their services not to make “money” from the clients, but who now want to generate the more valuable and lasting capital that comes from helping others.
In my experience in the trading world, this is not as uncommon as it might seem. While it’s true that he world of trading resources is vast and complex, full of scams and predators. And there are also valid, paid services that cover the myriad of possible trading styles and vehicles.
But there is another class of people and service out there that is free of charge, and offers info and instructions, imo, as valuable or more so than paid services. The motivations of these people could be quite simple. For one thing, most successful traders are constantly learning, actively evolving, and teaching is one of the best methods of learning.
The other possibility, as stated, is the non-jaded view, that some people actually evolve through Maslow’s need hierarchy, beyond the desire for making ever more money, and the primary desire, the actual motivation, becomes to help others.
Recommended free videos
Market Wizards, Schwagger
How to Make Money in Stocks, Oneil
Markets in Profile, Dalton