Hi all, I have been reading quite a bit here and am doing my first post so I can start getting advice from those who want to impart any knowledge they have in the area of Money Management.
I have always wanted to get into the share market and have been researching as much as I can over the past few months. I have a fair way to go before I actually purchase anything, and I'm starting with Money Management.
Before I talk about my strategy I think some info about me might help:
I'm 27 years old, in a relationship earning a combined ($15,000 + $70,000) per year, have expenses of $45,000 per year, debt of $54,000 (HECS) and save the remainder. We have saved up $230,000 and are wanting to use a portion of this for our investments. I want to start in the stock market, not the housing market.
My general thoughts on investing is that it is a long term marathon and needs to be maintained. I am not going to be doing any day trading, or any short based buy and sells - I don't have the time and I'm not sure I would be any good at it at all.
From my reading I have been able to guess (at this stage) that ill be the type of person who would want to undertake fundamental analysis on a company before I purchase it (in most cases), and then use technical analysis to determine the best time to enter the market for that company.
(By the way, sorry if I'm misusing any terminology here! )
What I've put together below is an overview of my strategy and was hoping to have some feedback?
The general idea here is that I will pace layer my approach with 3 streams of activity, each having a higher frequency of effort with potential higher return. I am also trying to spread out my investments across different categories to minimise overall risk.
I realize that this approach may end up being to involved for the time I can commit to this, and I may have to modify as I progress.
I guess at the end of the day I'm sick and tired of being penalized as a saver (having all my current money in the bank at this point).
The approach I want to use with implementing this strategy is as follows:
Spend 6 months testing across the board using either an online tool or excel to simulate buying, holding and selling with an initial capital of $100,000.
If I am able to turn a profit I will start out with 1 company in each category and slowly purchase more shares / companies over a 6 month period (after doing the fundamental analysis), where the right conditions exist.
I am in no rush to invest $1 or $100,000 and I plan to take my time. But if the right opportunity presents itself I want to be able to take advantage of it.
I guess ill leave it to you guys to pick this apart!
Thank you in advance for any feedback on anything I have said