What should be my next step from here?

[Steve C]

Hi All,

I have spent the last nine months reading and learning all I can about the market. I work in the industry (mining and oil and gas focused) so I am exposed to listed companies as a part of my job which also helps understand what is happening in the market. I have reached a point where I really want to have a go in real life and stop reading about how to drive a car and actually get behind the wheel so to speak.

I currenty don't have too much free capital (just built a house) and would only have $2000 to play with, one thing that puts me off is that the books that I have read and would like to implement (Nick Radges strategies in Unholy grails) don't really work with such limited capital as its impossible to position size and diversify properly (or can these strategies still work??). The flip side though is $2000 is not much money and if I lost it all I wouldn't be ruined.

I guess I am chasing some insight and guidance from the more experienced people here... what would you recommend I do with such limited capital, I really want to stop reading and start doing... Will the strategies still potentially work?

Thanks,

Steve

 

[Trembling Hand]

I currenty don't have too much free capital,

the books that I have read and would like to implement (Nick Radges strategies in Unholy grails)


Will the strategies still potentially work?

Nope. They will fail. Unfortunately you have probably missed the most important point of these types of approaches. They ONLY work because they survive the drawdowns.

$2000 will not survive a few losses let alone a real drawndown.

 

[Steve C]

Nope. They will fail. Unfortunately you have probably missed the most important point of these types of approaches. They ONLY work because they survive the drawdowns.

$2000 will not survive a few losses let alone a real drawndown.

Thought so - Thanks Trembling hand.

I guess my next questions are:
1) how much capital minimum do you need for this to work?
2) What could I do in terms of trading practise with my $2000? Short term swing trading using T/A? Trend trading?

I've done lots of theory I just want to try some real world application.

Cheers

 

[burglar]

... What could I do in terms of trading practise with my $2000? ... Cheers

Not for the feint hearted:

https://www.aussiestockforums.com/forums/showthread.php?t=25035

 

[Steve C]

Anyone else have any advice?

 

[Trembling Hand]

Anyone else have any advice?

Open a FX or CFD account and learn about trading with $1 a tick Index and FX intraday trades.

 

[sydboy007]

Depends what your goals are

IS your mortgage tax deductible? If not then TBH I would say paying off the mortgage for the next few years will prob provide you a nice after tax return. It's safe - guaranteed return - and beats just about everything else on a risk adjusted basis.

If that's too long a time frame for you, then I'd suggest wait till you have 10K and then buy either AFI or ARG. they are listed investment companies (LICs) and have enviable track records of beating the index and most funds managers over the long term. Both have been around for decades. they provide you with a good level of diversity and liquidity, so pretty easy to sell should you need the money down the track. they also provide decent franked dividend yields

I suppose I'm a bit on the conservative side of things, so for me building wealth is generally a slow process unless ya lucky enough to find a double or triple bagger - up there with hens teeth and honest politicians

Remember, capital is like blood sweat and tears. We generally wage slave ourselves to get it, so do your best not to loose it.