What would you do differently?

Hi All,

First post and have never invested money into anything let alone any sort of saving account.

But now I'm going on thirty something I really need to build some sort of wealth for the future family and all that kind of stuff. So I started reading book and studying all kinds of investment strategies Shares/Stocks, Managed Funds, Bonds, CFD's, Forex, and the list goes on. Right now Forex is where my time as the adds sucked my in showing how easy its to make with an automated trading system. With drawdowns and other factors I've come to realise there's no get rich quick scheme to be found.

So has my title for those who have been there and done that and what would of you done differently. I can't focus on where to begin but my hunch tells me a managed fund since I've only got a couple of grand to invest.

Sorry for the long post but I appreciate you comments/guidance if you will.

Cheers,

X

xolosis said:

Hi All,

First post and have never invested money into anything let alone any sort of saving account.

But now I'm going on thirty something I really need to build some sort of wealth for the future family and all that kind of stuff. So I started reading book and studying all kinds of investment strategies Shares/Stocks, Managed Funds, Bonds, CFD's, Forex, and the list goes on. Right now Forex is where my time as the adds sucked my in showing how easy its to make with an automated trading system. With drawdowns and other factors I've come to realise there's no get rich quick scheme to be found.

So has my title for those who have been there and done that and what would of you done differently. I can't focus on where to begin but my hunch tells me a managed fund since I've only got a couple of grand to invest.

Sorry for the long post but I appreciate you comments/guidance if you will.

Cheers,

X

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To go back to 30 I have to go back 45 years. If I had thought I had that much time ahead of me I would not have been in such a hurry and enjoyed the ride a lot more. My advice is to think twice before you act, not to be in too big a hurry, back your judgement, accept advice but critically examine it and ,above all, enjoy the ride. There is more to life than money, although money helps you get most of them (but not all of them)

nioka said:

To go back to 30 I have to go back 45 years. If I had thought I had that much time ahead of me I would not have been in such a hurry and enjoyed the ride a lot more. My advice is to think twice before you act, not to be in too big a hurry, back your judgement, accept advice but critically examine it and ,above all, enjoy the ride. There is more to life than money, although money helps you get most of them (but not all of them)

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Gold

xolosis said:

Hi All,

First post and have never invested money into anything let alone any sort of saving account.

But now I'm going on thirty something I really need to build some sort of wealth for the future family and all that kind of stuff. So I started reading book and studying all kinds of investment strategies Shares/Stocks, Managed Funds, Bonds, CFD's, Forex, and the list goes on. Right now Forex is where my time as the adds sucked my in showing how easy its to make with an automated trading system. With drawdowns and other factors I've come to realise there's no get rich quick scheme to be found.

So has my title for those who have been there and done that and what would of you done differently. I can't focus on where to begin but my hunch tells me a managed fund since I've only got a couple of grand to invest.

Sorry for the long post but I appreciate you comments/guidance if you will.

Cheers,

X

Click to expand...

I think i would have learned to trade much earlier. I would have studied harder and learned to trade long and short. I would have become an expert at technical analysis, reading as many books as i could have.

Now i'm playing catch up, but thats ok, lots of opportunities yet.

Cheers,

xolosis said:

So has my title for those who have been there and done that and what would of you done differently. I can't focus on where to begin but my hunch tells me a managed fund since I've only got a couple of grand to invest.

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It takes time to become competent. You will make mistakes along the way. I expect most people here who have had even a glimpse of what competency is like would say that they wish they started earlier Since you (we) can't, you should probably ask yourself why you only have a couple of grand to invest at 30-something...solving that problem (if there is one) should be numero uno. Doing so will stop you sabotaging your investment efforts along the path you are now on.

Hi X, If I had to list ALL the things I would do differently, I would have to write a short story!!

For someone new to the market ............ Don't try and trade speculative stocks with money you cannot afford to lose ........ ie. To paraphrase one of the smarter investors around here Thanks F/B ......... Invest in quality stocks with a long term view (trading can come later) ........... Cheers.

Much appreciated guys!

Now where can I start with education? Book recommendations and trading methods etc. Like I said I'm totally blind at the moment as there are so many investment products to choose from.

Oh I do have equity in my home so I could use some of that to get me started, $15K - $20K I hope is acceptable.

xolosis said:

Oh I do have equity in my home so I could use some of that to get me started, $15K - $20K I hope is acceptable.

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Yes, $15-20k is enough to begin. But the point of my earlier comment was getting at whether your current financial situation was like a boat with a leak ie. you have a spend/save issue. If it is, think carefully about pulling the money out of your house and consider perhaps setting savings goals while you are in your education process. If you're a disciplined saver, and a disciplined learner, then odds are you'll be a disciplined investor.

You could spend 12 months learning before you invest a dollar. How much could you save in that time? Food for thought.

xolosis said:

Much appreciated guys!

Now where can I start with education? Book recommendations and trading methods etc. Like I said I'm totally blind at the moment as there are so many investment products to choose from.

Oh I do have equity in my home so I could use some of that to get me started, $15K - $20K I hope is acceptable.

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I would not suggest you use the equity in your home at this stage. Paper trade for at least a year and invest ( not trade) your cash funds. Research one company at a time and $1000 to $2000 is still a worthwhile amount to invest. Look for a company that is getting close to production of a product in demand not one which is cashing in on those that are. I am not a financial adviser so I will not recommend anything particular but there is plenty of good advice on most threads if you sift the wheat from the chaff. It should not be too hard to double the money in a reasonable time without much risk.

theasxgorilla said:

Yes, $15-20k is enough to begin. But the point of my earlier comment was getting at whether your current financial situation was like a boat with a leak ie. you have a spend/save issue. If it is, think carefully about pulling the money out of your house and consider perhaps setting savings goals while you are in your education process. If you're a disciplined saver, and a disciplined learner, then odds are you'll be a disciplined investor.

You could spend 12 months learning before you invest a dollar. How much could you save in that time? Food for thought.

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Agree 100% here.
Savings/spending/discipline problem.
Solve that first then educate yourself before you begin.

nioka said:

It should not be too hard to double the money in a reasonable time without much risk.

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Really?

nizar said:

Really?

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Bought SMY just over 12mths ago @72c, sold at over $2 Now over$4.

Bought AOE lessthan 1year ago @ 60c. Now over$1.50

Bought ADI@30c now 53c but did reach $1. Sold some at 95c IMO they could be back to $1 depending on test results.

Bought LYC at 33c Now over 70c

Bought AGM @ 37c. Now 66C, have been to 72c. IMO will go over $1 before the end of the year when they will be into production.

Still hold AOE ADI LYC AGM plus others

Just because you start small doesnt mean its that much easier to double..the differences between 20K and 50K are nearly negligble for most smallcaps.

My worth: If I could go back to my mid twenties I would have investigated the best managed funds in the aggressive category and regularly put a % of my pay into it. If I had done that I would have been able to (that doesn't mean I would) quit my day job now. My brother did this and is now retired at 40 living on his portfolio income and looking into commercial property for his next big investment. He did nothing special - just worked hard, saved his $ and put it into funds. Why are the simple things so hard to do?

Hopeful said:

My worth: If I could go back to my mid twenties I would have investigated the best managed funds in the aggressive category and regularly put a % of my pay into it. If I had done that I would have been able to (that doesn't mean I would) quit my day job now. My brother did this and is now retired at 40 living on his portfolio income and looking into commercial property for his next big investment. He did nothing special - just worked hard, saved his $ and put it into funds. Why are the simple things so hard to do?

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Yeah this is a good post, must be more out there like it. Dollar cost averaging.

Cheers,

stoxclimber said:

Just because you start small doesnt mean its that much easier to double..the differences between 20K and 50K are nearly negligble for most smallcaps.

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Amount invested doesn't matter it is the percentage gain that is the factor in investing. Unless of course you invest large enough to influence the market. That will never be a problem to me

I haven't made all of these mistakes (but I've sure made some of them) but these things come to mind.

1. Learn about money management before you trade anything. Remember that if you lose all or most of your capital then you are effectively out of the game. No amount of successful trading ideas will help you if you don't have any money to trade with.

2. Know WHY you are about to do whatever it is you are about to do BEFORE you do it. Buying shares in XYZ? Why? Shorting AUD/USD? Why?

There are plenty of acceptable answers to the "why" question. It might be because technical analysis indicates a buying opportinity, because fundamental analysis finds the stock undervalued or because you know something about the underlying industry that isn't common knowledge.

But if you don't know the answer relevant to your case then you might as well head to the casino.

3. Remember that the market will still be there tomorrow and that it takes a 100% gain to get back to break even following a 50% loss.

4. Earning 6% on cash in the bank is better than losing any amount on stocks or forex. You don't have to be fully invested in stocks all the time.

5. Nothing moves in a straight line forever.

6. If you're into long term investing then learn about the underlying industry as well as the company itself. You don't want to be holding the most successful cart builder when someone's just invented the motor car.

7. Don't fight central banks. But understanding what they do may be of some use depending on what your investing / trading strategy is.

8. Spot the bubble. There's usually one somewhere and you don't want to be holding that asset when it bursts.

9. It's better to make 10% on $1000 than lose 10% on $100,000. Keep it small until you're sure you know what you're doing. That will take longer than you're expecting.

10. Don't use borrowed money unless you're damn sure what you're doing with it. The last thing you want is to lose all your money and the bank's as well.