Years ago I asked you about becoming trader, everybody told me, do not do it. Then my friends told me not do it, then a Chief ETF trader for a known company told me: not do it. I still wanted to do it, and I did not have enough cash/income to start. After 8-9 years I wrote you and I kept following for passion the fin markets, I kept seeing I was right in long term trends without investing money. Today there are fractional shares, zero commissions, instead of the options you can hedge yourself with some CFD and without (european) football I am getting crazy I put 100EU on a trader platform, and I got after 1 month 7 percent return on US market. Now is Warren B that is saying not do it, that is a crazy market now, but I am so enthusiast that I started and after one month did not lose nothing, to raise the bar putting 1000EU, and now I have 11 percent return putting 9 stocks, hedging with CFD, and once in while changing the amount of money from one stock to another(no commissions after all..) I am winning and as soon as will not going under 100EU net loss I am not going to leave this game because is much funny that other vices, that of course I have. Am I a genius? I do not think so. I have common sense? Yes. Do I read financials, do I know psychology And I do not look to easy gains, but to build up a portfolio. I have 60 procent positions in critical stocks, flying company, retail clothing, Shell. Then some IT and digital payment position. I am having fun, I am not going to lose more than 100 EU(if opening prices will allow), I do not miss football anymore, I am acquiring a mental entrepreneurial mindset, and as soon as I will have more big bucks I am going to buy bonds and leave 30 percent stock in my future portfolio. when people say that stock are dangerous they should speak about daytrading, not investing in company that will survive this crisis and increase value from tomorrow to 1 year. And now if you arrived till hear please reply me with your elite trader sarcastic puns.
Congratulations, it is good that you are learning so much about this market and that you share your feelings and experiences
Your post is too vague to comment on your methodology. Do you only rely on financials? It seems so. However, the more important point, you have 60% of your monies invested? You are taking too much risk and risk management matters more than you think it does. Personally, I never risk more than 10% of my capital at any time. If all 5 trades go south, I can lose 10% and still be able to comeback from it. All your stocks can drop all at once, causing you losses. If you have 50 years, you might be okay if you are an investor. Now, if you are a trader, you will probably, bail out sooner and at the worst time too. 90% of traders fail is a statistic that bears taking note of.
thank you guys, I got three posts with all I wanted. One sarcastic, one encouraging and another that showed technical interest. I know my portfolio is unbalanced even if I do not know Markowitz theories. I am risking to lose everything and I did not put a SL. So clear you are right and if the down will come I do not have some gold and anti cyclical to get through. I am definitely not bad with financials, but for SME less reading annual reports, but I am just playing a bit of psychology here and speculating on the moment. For instance I took 30 EU of EasyJet loosing 0.5 since days, so yesterday I took it away to start to value invest in NVDA, well as soon as I did this adjustement Easyjet started to be green, this was the signal, I moved some money I did with CFD scalping the NASDAQ and put roughly 100EU on this aviation company,and was a nice gain today, is clear that is underpriced, and they are not going to fail any day soon with 2,8b cash after they ripped people like me off in the years with their travels price algorithms. But this is the only strange thing I did, if the market is going to a new down I am done, and will try to exit with 100 eu net loss But I won my game: having fun without football, increase my knowledge of investments in an hostile volatile VIX environment. For price 100EU in theworst case scenario! A Chelsea game would cost me more lasting less. Winning the system makes me happy, that is why I decided to become a sw developer after all. A bonus. Listening smart investors is intellectually pleasant, playing with technical analysis is beautiful, following a bit of instinct with a bit of math also. If I had money @smallfil I am gonna indeed to invest 30 percent maximum in stocks, 5 is reasonable but depends how one is focused regarding outlook and finding a company who believe( I am still a romantic reader of Intelligent Investor after all), after all cost opportunity, fees and inflation are always around the corner, and capital gains in the Netherlands where I live at the moment, are not taxed till won't accumulate some more substantial income. Happy trading !
Hey Ivano, it's good that you're not scared , but , it's just , so much that you have to learn. Lets clear out few points : Great, never listen to those noobs. Commissions are hidden in the spreads. What does the broker say : CFD = Contract for Difference What does reality say : CFD = Contract for Dummies (there's reasons, why that crap is banned in US, while in EU, the markets & legal system, isn't so developed yet, thus they still allow it) Maybe that's good, maybe that's bad, here what the wise man has to say and the time will show. That's very bad, because an attitude like that reduces your chances of getting an advice from experienced user and might even earn you an ignore. (damn, saw this line by the end of my writing) What would you suggest, to start with $20 000 ? It's not about the profits, it's about learning in his case.
thank you Norbert, I love the smart chaps on this forum. Well commissions behind the spread is something I can live with at this stage if do not pay taxes on capital gains. Soros is so right, is not zero sum game as the movies say, but my investors are more Simmons, Munger,Icahn the only guy that take a lot of risk that I admire is Steinhardt. Ok ok 1 trillion against a government is a risk, but I see more politics there, and politics and policymakers are boring to me, as the books from Soros I peeked into some book shop
So your post is for telling everyone at ET that you are not scared of trading? Is this the reason for this thread? If so, I don't really think anyone cares that much.
@FortuneTeller what I mean is that: I bring my personal example to demystify a false myth, that is why my first post expain that everyone told me to not trade. My example is just a concrete one, but the real title could have been:is trading so scaring? I just bring my small personal newbe contribution that discover to be a contrarian, is like the variance investing from Steinhardt
next step might be adding technical analysis to the game. But as long as it is a hobby it doesen't matter too much. Good journey, buddy