To trade shares...or not?
Discussion
Hi All,
Coming at this from a slightly different angle.
I am researching some alternative streams of income alongside my current business. I know little about stocks and shares trading, but I am starting to read around the subject.
Question is; to become as proficient and knowledgeable as possible will, it seems to me, take a considerable time investment. Once I have got myself to a level, I expect I will then have to allocate X hours per day/week to trade effectively. I then start asking myself whether it is worth the time investment, and whether I should simply work (even more!) hours on my business where I can command a good rate for my time.
All that said, I don't like the idea of being entirely one dimensional with my time.
Any thoughts on time that realisitcially needs to be applied over time to build and maintain an effective stocks and shares portfolio? I need to work out if it has any mileage before I start doing some serious homework!
Thansk all....
Coming at this from a slightly different angle.
I am researching some alternative streams of income alongside my current business. I know little about stocks and shares trading, but I am starting to read around the subject.
Question is; to become as proficient and knowledgeable as possible will, it seems to me, take a considerable time investment. Once I have got myself to a level, I expect I will then have to allocate X hours per day/week to trade effectively. I then start asking myself whether it is worth the time investment, and whether I should simply work (even more!) hours on my business where I can command a good rate for my time.
All that said, I don't like the idea of being entirely one dimensional with my time.
Any thoughts on time that realisitcially needs to be applied over time to build and maintain an effective stocks and shares portfolio? I need to work out if it has any mileage before I start doing some serious homework!
Thansk all....
Hmm...can't say it interests me enormously, but I'm sat staring at funds in accounts earning approximately 3% and devaluing against inflation.
Guess I am answering my own question here, even though I have a fair lump, a 10% return per year probably wouldn't yield the same kind of result compared to some of my other business avenues in terms of time in/profit out, and I suspect a 10% return would be the more optimistic end of the scale, allowing for learning curve and all.
Looking at it another way, the stocks and shares ISA's I have are flat right now, and haven't grown at all in the twelve months I have had them. Considering that they are managed by a fund manager who does it for a living, and assuming they actually know their onions, why should I expect to do better? (thinking realism not defeatism here!).
Guess I am answering my own question here, even though I have a fair lump, a 10% return per year probably wouldn't yield the same kind of result compared to some of my other business avenues in terms of time in/profit out, and I suspect a 10% return would be the more optimistic end of the scale, allowing for learning curve and all.
Looking at it another way, the stocks and shares ISA's I have are flat right now, and haven't grown at all in the twelve months I have had them. Considering that they are managed by a fund manager who does it for a living, and assuming they actually know their onions, why should I expect to do better? (thinking realism not defeatism here!).
WinkleHoff said:
Looking at it another way, the stocks and shares ISA's I have are flat right now, and haven't grown at all in the twelve months I have had them. Considering that they are managed by a fund manager who does it for a living, and assuming they actually know their onions, why should I expect to do better? (thinking realism not defeatism here!).
2011 wasn't great !But things did start to pick up in December.
Have you checked your YTD gains ????
My Latin America fund is up 20%
Finance fund up about 15%
US job numbers are better than expected which should encourage Emerging Markets to move up after a crap 2011.
With regard to buying individual shares, you could do ok, but its an uphill battle if you believe the IMF growth estimates for UK.
I think gains might be easier to find by just being in the right fund!
And for 2012 that may not be the UK (or possibly the US)
PS Fund Managers are judged by either beating their target index or by being in the top quarter of their fund catagory. So a guy could beat the Abu Darbi real estate index by 20% and still loose you money
Hoofy said:
Markets are up Thats an interesting point - perhaps my time is better spent looking at and researching some other funds. The ones I have (Investec and L&G) are supposedley cautious (which is all relative)and primarly UK based so its a "no brainer" as to why not much has happened.
Many thanks for your views on this.
Many thanks for your views on this.
WinkleHoff said:
Thats an interesting point - perhaps my time is better spent looking at and researching some other funds. The ones I have (Investec and L&G) are supposedley cautious (which is all relative)and primarly UK based so its a "no brainer" as to why not much has happened.
Many thanks for your views on this.
As a UK investor you still need a Sterling bias, maybe look at moving just the less appealing of your two funds.Many thanks for your views on this.
How much are you looking to invest? Unless you're talking tens of thousands, then you'll be lucky to get big returns. Most shares only fluctuate by around 10% at most (unless you're looking for very long term profits), and if you don't invest a lot then a lot of the potential profit is taken up with dealing costs and tax.
Size of position matters little as fixed transaction costs are relatively small anyway. It's about %, that includes taxes which are progressive NOT regressive as some of you seem to suggest. Or using spreadbetting there is no taxation and completely linear costs.
To answer the OP - you probably don't want to, unless you know what you are doing and you have spare cash that can't be used effectively in business.
To answer the OP - you probably don't want to, unless you know what you are doing and you have spare cash that can't be used effectively in business.
Edited by chris7676 on Wednesday 8th February 10:44
Or if u dont know much about trading then why not copy others http://www.etoro.com/
A bit more info here http://andrewminalto.com/easy-money/
A bit more info here http://andrewminalto.com/easy-money/
Anthony Micallef said:
A bit more info here http://andrewminalto.com/easy-money/
a genuine lol from me at that oneRizzoTheRat said:
limpsfield said:
a genuine lol from me at that one
Care to elaborate on that? It gets my "if it sounds too good to be true it probably is" sense tingling, but other than being a bogus company that wouldn't let you withdraw money what other issues are there?Gassing Station | Finance | Top of Page | What's New | My Stuff