Building capital - Aussie Stock Forums

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  1. #1

    Default Building capital

    Hi guys.

    I was hoping someone could give me some ideas on what to do.
    Basically I am building capital (10% of my wage into an investment account weekly) and I have picked up from this forum that brokerage fees would eat into a trading account under 30k.
    What should I do with my building capital until I hit a sum large enough to trade? I want to trade using a momentum strategy.
    I thought of buying government bonds but again the brokerage fees make it not worthwhile.
    The only thing I can think of is putting the money into term deposits but they don't pay much under 5k deposits.

    Anybody got any ideas?
    I have only just started to build my capital as well so only at 2k.

    Thanks for any insights.

  2. #2

    Default Re: Building capital

    Automatically deduct 20% of your net income on pay date into a savings account. Returns in the early days won't be great. + 4% introductory offers are available. Assuming saving $250 / week or 1k per month that will be over 2 years of saving. In those 2 years I strongly recommend you learn what you need to know. Like what to do in a losing position, what to do in a winning position, how much to allocate to each position, what universe of stocks you wish to become very knowledgeable in and trade, macro market knowledge, when (in line with your analysis) to be in the market and when to sit out of the market.
    In each of those factors are many threads of importance. Don't let your experience be an expensive one.

  3. #3

    Default Re: Building capital

    There is no need to rush, stock market will be here for the next 100 years and beyond and plenty more crash and bull market in between.

    I say stack away in a high interest saving account while you skill up or acquire knowledge.

    Going into the market without strong foundation you are influence by headlines, other people and general market fear and greed.

    Another way you can learn is dip in a small amount because when your money is on the line you are more motivated to keep up and learn.

    Good luck and enjoy the Journey.
    "cash - a call option with no expiration date, an option on every asset class, with no strike price. Warren Buffett

  4. #4

    Default Re: Building capital

    Thank you for your help guys I appreciate it.

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