Stocks/Shares help
Discussion
Is this assuming lots of daily trading in these studies? For example by looking at the larger trends you can reduce the risk by buying and if needs be waiting. An example for me would be short term trading related to an upwards trend like oil has been recently far. It is partially gambling, but if you wait until a likely lower than average in the long term and buy in a bit high then you can wait some time for it to recover. So say you bought an oil related stock when oil is at $35, the price dropped to $27 then you can wait for it to go up again. In this case it's likely to go up in the long term anyway, so it's possible to wait it out (depending on the situation of the company) even if you do get stuck short term. You may not maximise your money, but you can take some of the risk out of it with patience and the right company. Ironically enough for my example oil is somewhat dropping off a mini-cliff as I type this now!
The last few years I have made small losses of a few hundred pounds total by being a bit silly (learned from the advice on here for wait until it turns and then buy in, don't try and guess the bottom). This year I am making a profit, as I have invested in oil stocks, since it's something I know well, and I believe that the oil price is too low so should go up long term. Thus even if I got stuck in companies now I am happy to wait for it to recover further. The situation is a little different now, since $50-60 is quite likely the normal price now, but certainly earlier in the year I feel it's been a pretty safe bet.
The last few years I have made small losses of a few hundred pounds total by being a bit silly (learned from the advice on here for wait until it turns and then buy in, don't try and guess the bottom). This year I am making a profit, as I have invested in oil stocks, since it's something I know well, and I believe that the oil price is too low so should go up long term. Thus even if I got stuck in companies now I am happy to wait for it to recover further. The situation is a little different now, since $50-60 is quite likely the normal price now, but certainly earlier in the year I feel it's been a pretty safe bet.
Thanks for the responses lads.
It was going to be more of a hobby to be honest, I say I'm clueless, not that much I just don't know a great deal.
Been doing some research since putting the post up and will continue to do so.
Wolf of Wall Street has gone to by head...... I visited Wall Street the other month when on holiday, hell of a place.
I've taken on board what you have all said but still want to learn and have a play about, will start with a practice account at some point.
Do you lads commenting trade?
It was going to be more of a hobby to be honest, I say I'm clueless, not that much I just don't know a great deal.
Been doing some research since putting the post up and will continue to do so.
Wolf of Wall Street has gone to by head...... I visited Wall Street the other month when on holiday, hell of a place.
I've taken on board what you have all said but still want to learn and have a play about, will start with a practice account at some point.
Do you lads commenting trade?
I don't trade. I do hold a diversified portfolio of shares as long term savings. I spent a few years working with professional traders at a couple of investment banks as a rates and bond market analyst, and as a quant analyst/developer at an equity hedge fund, so some people used to pay me to come up with trade ideas, strategies and analytical tools ... more fool them!
Ha, I enjoyed the graph... though couldn't help wondering, pedantically, why the different careers start at such different levels on the y axis and how successful the traders should be since they seem to have a time machine 
"I don't trade. I do hold a diversified portfolio of shares as long term savings. I spent a few years working with professional traders at a couple of investment banks as a rates and bond market analyst, and as a quant analyst/developer at an equity hedge fund, so some people used to pay me to come up with trade ideas, strategies and analytical tools ... more fool them!"
Wise words from someone who has been in the business..
"I don't trade. I do hold a diversified portfolio of shares as long term savings. I spent a few years working with professional traders at a couple of investment banks as a rates and bond market analyst, and as a quant analyst/developer at an equity hedge fund, so some people used to pay me to come up with trade ideas, strategies and analytical tools ... more fool them!"
Wise words from someone who has been in the business..
TheHighlander said:
Do you lads commenting trade?
I don't normally - like most I have a long-term holding of dumb tracker funds of developed markets, so nothing too fancy. I did have a punt pre-brexit though - I figured the dollar exchange rate would fall regardless of the options (a remain vote would have been followed by a US interest rate rise) so I bought into a £ denominated fund that bought $ denominated shares. I'm happy to say that worked out fairly well as the fund is up 15% in £ terms since Brexit, a net positive even after the exchange rate is accounted for.
That was just a punt though - betting on a result. And like betting on a horse it's a bad idea to pick the one whose name you like or whose rider has the prettiest silks.
I find these sort of Topics fascinating and I especially enjoy reading the posts of those of you with experience in share dealing.
There is always the same answer given to the novice day trader.....don't do it .....you'll eventually lose your pants.
There is also the different attitude you have with Day trading versus building up a long term portfolio.
The common mantra is always ....don't put all your eggs in one basket......diversify.
As a retailer I follow the fortunes of other retailers on the stock market.
I have a great deal of retail experience and curse myself that I didn't buy ABF ( Primark) when 10 years ago it was circa £3 a share.
Sports Direct was also a worthwhile punt,although it's been more of a roller coaster the past few months.
I think the thing is that fantasy traders ALWAYS remember the GAINS they could have made and forget the LOSSES that they have had.....it's always harder when it's your own real money.
I always shudder when the prospective novice punter says "I don't mind if I lose my stake,it's only for a laugh.".
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There is always the same answer given to the novice day trader.....don't do it .....you'll eventually lose your pants.
There is also the different attitude you have with Day trading versus building up a long term portfolio.
The common mantra is always ....don't put all your eggs in one basket......diversify.
As a retailer I follow the fortunes of other retailers on the stock market.
I have a great deal of retail experience and curse myself that I didn't buy ABF ( Primark) when 10 years ago it was circa £3 a share.
Sports Direct was also a worthwhile punt,although it's been more of a roller coaster the past few months.
I think the thing is that fantasy traders ALWAYS remember the GAINS they could have made and forget the LOSSES that they have had.....it's always harder when it's your own real money.
I always shudder when the prospective novice punter says "I don't mind if I lose my stake,it's only for a laugh.".
.
I was in your position a few years ago. I knew absolutely zero about trading, investing, shares, etc. I started off slowly, with very small amounts of money. I'm pleased that while I've lost money on individual positions, never on the whole portfolio. I am completely self-taught, but I have spent A LOT of hours on it.
First thing to think of is - trading is for pro's only. You will never make money trading long term unless it is your job. Even then you will probably lose more than win.
Investing, value investing in particular, has a strong track record and can make you very rich. Value investing is brilliant because it works best the less money you have.
I am going to give you a list of people to study. Read every book and watch every YouTube video you can find on all these people, then open an account with DeGiro (Stockbroker with the lowest fees) and get started.
Warren Buffett
Benjamin Graham
Seth Klarman
Guy Spier
Whitney Tilson
Philip Fisher
Bruce Greenwald
Then, join the following websites:
The Corner of Berkshire and Fairfax
Net Net Hunter
Value Investors Club
Buy me a beer when you've made your first £100k...
First thing to think of is - trading is for pro's only. You will never make money trading long term unless it is your job. Even then you will probably lose more than win.
Investing, value investing in particular, has a strong track record and can make you very rich. Value investing is brilliant because it works best the less money you have.
I am going to give you a list of people to study. Read every book and watch every YouTube video you can find on all these people, then open an account with DeGiro (Stockbroker with the lowest fees) and get started.
Warren Buffett
Benjamin Graham
Seth Klarman
Guy Spier
Whitney Tilson
Philip Fisher
Bruce Greenwald
Then, join the following websites:
The Corner of Berkshire and Fairfax
Net Net Hunter
Value Investors Club
Buy me a beer when you've made your first £100k...
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