Hi guys. First I'd like to tell you guys a bit about myself then I'll get in to the topic. I am a 20 year that is looking for work but has 10k in the bank, which gives me 35 dollars a month interest. I am going to do blue chips because I want to get comfortable first and get the hang of trading before I start going deeper.
My risk tolerance is very low, I mean I would hate to lose money (I guess we all would) I have no income coming in, so what I lose is what I cant make up for..
Blue chips is something I am interested in, big and well known company's wont go bankrupted ( there's always a chance it could go bankrupted but minimizing the risk is important)
Let's say I bought 10000 dollars worth of either Woolworth, Westfield, or the big four banks and the shares increased in value but decreased a bit, now that would make me go crazy even seeing a decrease sign would make me not be able to sleep at night, but for a noob I think that is normal but for a professional or a well experience person its normal and they can still have a good night sleep. I wouldn't be able to though.
My question is, in the long term would I make a profit I mean I am talking about 10 years + here of holding that share, seeing it increase and decrease and times.
In the long run is it worth it? Am I going to hold on a share for 9 years then see 100% of my 10000 dollars go?
I know some of you will say that its impossible to know what the future holds for these company's or that we cant answer these questions because we don't know what's going to happen in 10 years.
I understand there but what I am asking is regarding a company that has a huge history behind it and has went through hell financially but at the end came back up. company's that we use everyday.
My goal is to hold on to 4-6 different types of well known blue chip company's for years I am talking 20-30 years and adding more money on to it every month or every year. I save a lot and I give up my social life to do so, I save 95% of my money and did that when I was working before I got laid off. When I do have a job and have these shares (if i have these shares) I would add 2k every month for 20-30 years or whatever. I am not looking to make big money in a short time I want to see my shares go up in value every year or so but is that even possible?
I know I repeated myself a few times on this but I want to make sure you guy's understand what I am trying to say, Its a bit hard to do so when you're a noob and dont even understand half of the words that investors/traders use haha.
Thank you in advance and i hope to learn a lot from you experienced people.