I am after a bit of advice.
Basically, I am on a fairly average salary (I am only 21) but I am wanting to get into buying shares early so that by the time I hit 30 even if I do make a few hiccups my overall return should be good, rather then wasting money on depreciating assets like cars when I'm young.
I guess because I am young, I don't mind taking a bit more risk because if I continue to trade shares even if I did make a big loss - it will at least be offset against my capital gains in the future. Though, I don't want to take stupid risks and lose lots of money either.
What type of advice would you give me in terms of the type of investing that would be best for my situation? I am currently leaning towards margin lending and just buying and holding a mixture of mostly blue chip shares but also some slightly more risky shares too.
I guess my plan would be to (in 6 months time) put in $5,000 capital initially and loan $10,000. Then about 6 months later do the same again and then after a year or so I would look at selling the shares I brought (so it's a discount capital gain) and possibly doing the same again by loaning double the amount of capital I start with.
Three more things, firstly should I look at investing in commodity, options or index's rather then shares? Secondly, is margin lending a good way to go for my situation? And thirdly, is dividend reinvestment a good idea when your margin lending or should you just focus on repaying the loan?
Just a bit more further information, I just started working as a tax accountant so if I did use a DRP for instance I won't be forking out tons for an accountant to work out my net CGT or anything. I did do financial risk management at university (though because it was my 2nd finance subject ever a lot of it I didn't understand fully). I know a bit about types of hedging strategies but I don't think i'm confident enough in my knowledge to apply them without guidance (initially anyway).