Trading Advice: Should He Stop Trading?

Trading Advice: Should He Stop Trading?

I received a message from a 20-year old college kid:

"I need some trading advice:

So my parents just found out about my trading account and said to stop playing with money! But I don't wanna listen to them as I believe this could be the beginning of something really big!

They said you have to be really smart to be successful and I should focus on college. I'm currently 20 years old."

Soooo..... should he pursue his dreams of trading? Or should he listen to his parents and quit trading?

What trading advice would YOU give him?

Watch this video and see MY reaction and what I'm telling him.

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[ProfRoofs]

I’m 38 and wish I knew how to trade at 20 years old. Start with paper money and when you’re consistent, hopefully you’ll have money saved up to start.

[tube]

How does he pick the stocks to trade?
What are the financial tools he uses to select the stocks to trade?
What kinds of stock did he trade? e.g. Penny stock, mid cap...?

What is the average holding time (of stocks)?
JUST FEW QUESTIONS TO ASK.

[bernieadams]

correct advice. parents always want the best for their children. however, many parents give advice that are one generation too late. getting degree might be the golden goose for their generation but now days there are many graduates on minimum wage. if you think you're an adult that are capable and responsible for his own decisions, talk and negotiate with your parents like an adult do

[angelinaliner]

Stick with college, along with continuing to learn how to trade with your own money. Follow Markus advice.

[sabriath]

Trade the entire 17k....your parents gave you the 10k "for stuff" (college, food, clothes, etc.), so use that 10k as your funds while in college....but the 17k is yours, trade the entire thing, giving you 34k of buying power. That's my opinion, but I've been doing this for over 20 years.

[gasser]

If he was my kid, I'd learn too!

[zombiedriver]

Trade only own money. Sim good idea. Agree

[rkoka]

I agree with Markus as a trader/ parent, but my revision would be have the 10k in account to maintain pdt but instead of trading growth focus on honing the wheel using on value names staying at 20 delta. On assignment learn how to manage the trade. Yes this not going to fetch the goal of 70k but, training and discipline. When you are coming out college and starting a job. Continue to add and compound but knowing you backtested entry, management and exits. Welcome Jason to trading world, stick to a well set plan.

[pamlyde]

I would encourage the education pursuit and encourage the continued trading.

[ExperimentalPerception]

Dont forget taxes. Capital gains adds up quickly.

[gvfb]

to Jason I say, YOLO. Stick to the wheel strategy and prove them wrong. You can always make the money back, you sound like a smart kid.

[Putseller]

For the parents perspective, the son is now 20 years old. What kind of kid was he the first 19 years? Was he a responsible kid who followed through with his plans, or did he give up easily? How was he with money ( I know he has a nice account size but what if that began as a 100k inheritance and he blew it) was he a saver or a spendthrift? Was he a gullible kid always looking for shortcuts and quick fixes or did he do the proper research and think for his self?

Basically this kids previous character should reflect on his parents decision. Although he is 20 and officially an adult so the choice is entirely his.

[DA-qepy]

Great advice Markus!!! I would also suggest that Jason pick up skills in college that can help his trading and maybe even land him a a finance job like being a Quant or working in a data science related position. That way he can always find a job, if his trading is set back by some unforeseen black swan event. Plus working and trading part-time removes the pressure of making a constant paycheck from a trading account, especially if Jason gets married shortly after college. :-)