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created:March 5, 2017
karma: 2503
about: "If you don't find a way to make money while you sleep, you will work until you die." Warren Buffett, CEO of Berkshire Hathaway.

The chance for you to be the next Zuck, Jobs or Gates are very close to 0, but you can definitely run a successful lifestyle business with no customers, no employees and no investors and location independent from anywhere in the world...

It is called quantitative stock trading and the barrier for entry is very low, some Python knowledge + Linux machine and some historical data to start and off you go...

All that said, here are the 3 most important advises I wish someone told me when I started many years ago:

1. Never ever trust and buy a trading system from someone, especially trading school or trading guru, the fact they are selling or "teaching" a trading strategy means it is not working and they are trying to make money by selling the dream, all those trading educators cannot make money trading and that’s why they are coming with up with those scams, fake results, etc.

2. Before you trade even single penny on the stock market, spend the time and educate yourself by testing different trading strategies and ideas - go to eBay and search for "historical stock market data", you can buy 20 years of data for less than $100 - that's all you need to start.

3. Have an iron clad risk management strategy for your portfolio, e.g. if you are willing to risk 1% of your capital on any given day and tomorrow happens to be the Back Monday or Flash Crash and all stock go down 50% you still have to be sure you’ll loose only 1% if you have to sell everything...

This is where the back data comes into play – the goal is to back test not how much money you are going to make, but how much money you are going to lose in the worst case scenario: if you have to liquidate everything and move to cash...

Good luck!

P.S. There is no luck in life (unless you win the lottery), the rest is a lot of hard work... e.g. the more you work, the luckier you’ll get...