You have 18/19 years old and you just give some thought what studies to choose so that they would help you with the career on the stock-market? You already have results on the stock-market and it’s time to start your studies. Is it worthwhile in such a case to study?
In this article I described my reflections to this subject and effects of conversations with other traders. Reflections of somebody who for 8 years lives from the stock-market, but profits appeared when I was on 3rd year of studies. Whether I quit and I devoted fully to trading? About it below…
Choice of studies in terms of learning trading
I will say it this way: FORGET THAT STUDIES WILL TEACH YOU ANYTHING IMPORTANT AS FOR REAL TRADING.
I write here capital letters and a thick font so that you stick this one sentence into your mind. They won’t teach you; there’s no chance for it.
I’m saying here about the real trading, not ordinary bases, which you can read in any book or eBook on the Internet. Why won’t they teach? Because practically none of the lecturer is a trader, they are a theoretician or their contact with trading was occasional. With a candle to search for academic teacher who would had a practical knowledge, and earns at the same time on the market. I only met one on the University.
“Finances and Investments” – it sounds nicely. But with trading or development of knowledge about investment it actually has little in common. You will learn there the base of economics, macro/micro, base of investment, etc. But it won’t be a knowledge from which you will use practical things in trading.
I graduated “Financial Engineering”. It would seem an elite direction, difficult. However, in those times in Poland there were only few specific offers for people with this direction (probably now it changed a bit). Abroad opportunities were greater.
I remember when I was on one of lectures, which have often been held on my University. One of tutors in order to show what are the perspectives in Poland asked questions – “what amount would you like to earn after graduation?”. And added: 3 thousand; 4 thousand; 5 thousand; 10 000 thousand. Of course, the students wanted as much as possible. From the entire room, and there was probably more than 400 people, the majority had a dream to earn 5-10 thousand. The message was sad, but indeed real: “Well, it would be good if at least few of you will earn above 5000 PLN”.
So when I started trading in the office, I got to know other traders, I saw the possibilities, what results they have. I answered a question of the speaker once again. I focused on trading very, very strongly. On learning, development, analysis of what and how I trade, I devoted a lot of time every day. The goal was clear. I’ve never approached to learn in such a way. This time was differently. And hard work brought effects. Remember it: nothing comes easy. This applies to all fields. Without a job, there is no effect.
So, why to go to studies? Why to graduate?
To the last moment I didn’t know on what studies to go. I knew that I would go, because all of my friends from high school went there. Well, I must also, because it will be a good thing to do; because after graduation I will find a good job, etc. The decision was taken in a flash – my plans to go to the University of Technology in a direction of Programming changed to Finances on the University of Economics. Reason? There wasn’t any specific. I didn’t have a plan for life, what I want to do.
Directed studies with master’s degree – and that I have. From 3rd year of studies I started trading in the office, later on own and this lasts up to today. I didn’t quit studies when regular profits appeared. Why? About it below…
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What do I have after graduation? For sure, I’m smarter. I have a specific knowledge, I know what and how in finances / in economics is functioning. Whether I use from it. Rather not. Whether it helps me in life. Yes. Whether it helps me in trading. No.
Even knowledge in the fundamental analysis, which I learned wasn’t useful. Simply in trading it isn’t needed for me, I don’t use it. I’m not an investor, who more widely perceives the market. I trade what is here and now. Why for to guess what will happen in the future.
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For what I need studies? Because when I started, I didn’t still know that I would be a trader. Probably I would go in the direction of corporation. But on 2nd year of studies I worked half a year in the bank, and it was enough for me to quickly reject this direction of career. I didn’t feel good there.
Studies are a great supplement. They constituted an alternative for me. When I still studied, and already trade in the office, I knew that if something would go wrong – I have a diploma, an open door to banks, corporations.
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For what I need studies #2? Because I got to know bunch of great people. I experienced that time in a full swing, as it is necessary 🙂 and I met my wife there, and it is the biggest award for me 🙂
Contacts and friends from studies it is an important thing. I asked my pals today in the office about it. What studies provide them, taking into account that they trade. Their reply was the same. Friends, contacts – something you wouldn’t have siting only in front of the trader position.
Whether from a perspective of time I would change my direction?
Yes. I think that I would like more to learn about my psyche, emotions, what isn’t necessarily associated with numbers, statistics, and bases of economics. Such knowledge would certainly be useful in trading; in the work over myself and stress/emotion impact on decisions. But if I would chose to study psychology – whether I would became a trader? 🙂 Psychology despite everything is a quite theoretical object.
Studies and trading – experience from trading office
In 2007 – 2011 I worked in trading office, as a trader. At that time there were a lot of people, who also wanted to earn this way. In view of the education, the most interesting is that only small part only of them graduated studies related to finances. One of my best pals at the office, if not for trading, he probably would become a car mechanic. Other had also interesting education: PE teacher, programmer and philosopher. And each of them found fulfilment in the market and had very good results; and what’s more without bases about the economy, capital markets.
The market teaches us; there you risk your money and you build own strategies. There you finally get to know it really, what personality you have and how you respond to failure. After all, you will see whether you get a suitable lesson of humility, whether your ego will win and you won’t take the lesson from losses.
Why to go to studies in such a case?
For peace of mind! If you currently have good results, you probably assume that it will continue. Probably an upturn will reach it. After all, we assume that if we do something, we develop in a good direction. However, it is not always so colorful. Over the years a few of my friends resigned from trading (in spite of periods with really sensational results). The market changed, strategies didn’t work anymore as they used to, and at the same time they weren’t able to change something in the style of trading in order to adapt to the market.
Studies in direction of Finances, Economics, and Investment – are good if you plan to lead your path of the career in the direction of capital management. I.e. work as the broker, investment consultant. Then you should choose a good University that offers financial directions.
After graduation, when you will start to work in the bank, brokerage house, etc. you will begin from 0 – you will undergo courses, trainings, you will obtain new certificates. You will use the knowledge gained during studies, but it will be only a theory. Only then it will translate into needed practice and experience.
Conclusions from discussions with other traders
I asked today my friends in the trading office – what they would do if they had 19 years old again. I split the questions into few possible paths. Below are presented their responses and I hope that they to some extent will also help you. At the beginning question of later replies. Thanks guys for your help 🙂
- You’re 19 years old; you have experience in trading and regular profits e.g. on a level of 3k USD per month (I assume such a purely theoretical level – this level is higher or on a level of average earnings in Poland on the better positions. To a minimum of such a level of profits in my opinion we may compare trading). What do you do?
In spite of results, I go to the University. I don’t know what will happen in a few years. I have no idea how my life would go as a trader. Maybe profits will be higher (I hope so). But I want to have a perspective that if something goes wrong I have my degree. In Poland, probably, I wouldn’t be hired in the corporation, banks, etc. if I didn’t have a diploma. So it is worthwhile to I have it.
If in a moment of graduation, results on the stock-market would be weak, I would go to work in the corporation. If results would continue or would be higher – the reply is simple. I devote only to trading.
- You’re 19 years old; you choose the University; in the process you start trading and results appear. What do you do?
I graduate at the same time. I don’t give up, because temporarily results appeared. Similar reply to above! I put on development on the market; I look in a longer perspective in accordance with principles of “trading it is a marathon, not a sprint”.
- You studied; in parallel you started trading with good results. However, one day something changed, results ended, you couldn’t adapt to the new market. What next?
The answer depends on a certain issue: how large sum you save over years of prosperity 😉
If trading let us say “ended”, the first plan is to open your business. Believe me, a full-time job for somebody who spent a lot of years as the boss – it is hard to imagine. Therefore, the best option is to devote some time and money for development of own business.
What’s interesting, if trading ended, other from presented possibilities is to leave abroad. Even, if there were good savings for a pleasant life. It’s a matter of character, the fact that we don’t like vacuum in the life from the business/employee side. In such a case the work wouldn’t have to fulfil an excessive idea but ambition, and leaving abroad would provide fair level of earnings.
However, in case of not too large savings, the one option is a normal work. The normal work in such case would constitute strong mental peace of mind.
I would add one more thing to it (because responses of my friends coincide with my view). However, it is worthwhile to remember about one thing – because it overwhelmed a few of my friend’s traders. Remember not to change your worldviews by the money. A level of consumption is very important. It doesn’t matter wherever the stock exchange would give you 5, 10 or 50 thousand per month. If along with these profits, expenses will be large, you won’t secure your future. But it is already subject for a separate article.
My message
In spite of the fact that studies won’t teach you trading, it is worthwhile to get you degree. Both for the charm of student’s life, expanding own knowledge, as well as getting to know a lot of cool people. Trading is not suitable for everyone. You can have your plans and dreams, which are related to trading, but it may turn out that you will never manage to turn the enthusiasm into results. Into results that are the only indicator of success on the market.
It is worthwhile to have a diploma, if it turns out that trading isn’t for you. It isn’t worthwhile to put everything on one card. The diploma doesn’t mean that your career will go in this direction. A lot of my friends developed their careers in directions that not overlap with the direction of their studies 🙂
If you decide that you want to try in trading, remember to do it with a head, with a huge enthusiasm and devote yourself to it.
What studies did you graduate? Are they related with what you do at present?
I hope that above described differences are clear enough to understand it, between the accounts at the broker to cooperation with the proptrading company.
