Achieving wealth through shares...how?
- Thread starter dajackal
- Start date
I just checked the prices of the banks, BHP & RIO, TLS, WOW and AMP over 10 years.
BHP was the standout (Haven't I been saying) more than tripling.
RIO doubled
Of the banks CBA went from 33 to 50, WBC and ANZ had modest gains and NAB lost 30%.
WOW was steady.
TLS lost nearly 40%
and AMP has the dunce's cap. From 14 to 4.
You will not live long enough to get wealthy this way.
Those who love ferreting around (the way some here do with property) can have spectacular returns. You must have a real interest though. Don't do it because it looks like a good idea at the time. Like getting married on a whim, it can be costly.
BHP was the standout (Haven't I been saying) more than tripling.
RIO doubled
Of the banks CBA went from 33 to 50, WBC and ANZ had modest gains and NAB lost 30%.
WOW was steady.
TLS lost nearly 40%
and AMP has the dunce's cap. From 14 to 4.
You will not live long enough to get wealthy this way.
Those who love ferreting around (the way some here do with property) can have spectacular returns. You must have a real interest though. Don't do it because it looks like a good idea at the time. Like getting married on a whim, it can be costly.
Last post you said "ten years" now you are cherry-picking start/finish points: From '03 to sell BEFORE the GFC. That isn't anything like apples with apples. And how did you know to sell in '07?
AMP was $14 ten yrs ago.
"Last post you said "ten years" now you are cherry-picking start/finish points: From '03 to sell BEFORE the GFC. That isn't anything like apples with apples. And how did you know to sell in '07?
AMP was $14 ten yrs ago. "
Im sure I said around 03/04 which is around 10 yrs ago
Of course most investors would not know exactly when to sell before the GFC struck. But look at this way, if you bought RIO for $35 and a few years later it was worth $150, the temptation to sell would have overcome many an investor, well before the shareprice hit 150.
If property went up like that you would be clicking your heels in the air. Rich, by the general definition!
Also, Im sure AMP was a lot less than $14 in 03/04
AMP was $14 ten yrs ago. "
Im sure I said around 03/04 which is around 10 yrs ago
Of course most investors would not know exactly when to sell before the GFC struck. But look at this way, if you bought RIO for $35 and a few years later it was worth $150, the temptation to sell would have overcome many an investor, well before the shareprice hit 150.
If property went up like that you would be clicking your heels in the air. Rich, by the general definition!
Also, Im sure AMP was a lot less than $14 in 03/04
Dont forget stop losses!
Whatever your strategy, the number one thing to implement in my humble view is the setting of stop losses & profit stops! Equally important whether you are any type of trader or investor.
The question of what stop loss/profit stop strategy is right for you is not so easy, and is something you will have to work out for yourself in line with your overall strategy. One of the biggest lessons of the last few years for investors has been that the eternal buy and hold strategy can burn you badly if there are no stops in place.
Whatever your strategy, the number one thing to implement in my humble view is the setting of stop losses & profit stops! Equally important whether you are any type of trader or investor.
The question of what stop loss/profit stop strategy is right for you is not so easy, and is something you will have to work out for yourself in line with your overall strategy. One of the biggest lessons of the last few years for investors has been that the eternal buy and hold strategy can burn you badly if there are no stops in place.
Its taken me 10 years to develop a good plan and for me its buy and sell in a short time span.
In 2009 I made a lot of money but it wasnt rocket science then as the market was bullish
Today I make money buying and selling the same share and not in the market all the time
I dont make a lot of money these days but I sleep well
I will give you a test and see how you do
Take $20 to the pokies and bet and if you get to $25 take your profit
Can you do that if you can you might become a good trader
The biggest mistake traders make is they become greedy
Trading is the hardest game in the world but if you have the right emotion you can be successful
Good luck
In 2009 I made a lot of money but it wasnt rocket science then as the market was bullish
Today I make money buying and selling the same share and not in the market all the time
I dont make a lot of money these days but I sleep well
I will give you a test and see how you do
Take $20 to the pokies and bet and if you get to $25 take your profit
Can you do that if you can you might become a good trader
The biggest mistake traders make is they become greedy
Trading is the hardest game in the world but if you have the right emotion you can be successful
Good luck
Because we get carried away thinkng we're gonna make more and more but end up losing money and selling for a loss cause ythe price of the share went down
Doing your reasearch first and working out what might actually happen rather than just sit on the shares hoping they continue / start doing what you want
Better off working out - I think AAA will go up 20% & therrfore selling at 20% profit, then holding on cause you hope it might go to 30% or 40% but drop 50% instead and you end up losing your money.
Of course, sometimes gambling is fun and we all know stories of gambler's luck, but wehne I'm dealing with money I dont want to lose, I prefer to take a more strucutred approach.
The only REAL money to be made (ie turning a small fortune into a large one which is what the OP asked, as I remember) will be in junior miners. If and when you jag one (yes it ain't guaranteed) you ride it, not trade it.
Nothing quite as satisfying as a 1,000% gain.
I should add that there is a small chance of a biotech making good, but that's not for me.
Nothing quite as satisfying as a 1,000% gain.
I should add that there is a small chance of a biotech making good, but that's not for me.
I understand what you are saying but if something is going up I don’t want to sell, I want as many as I get
Personally I think profit target are more of a reflection of the trader/investor in so much that they would rather ‘not lose’ than 'win'.
I understand what you are saying but if something is going up I don’t want to sell, I want as many as I get
Personally I think profit target are more of a reflection of the trader/investor in so much that they would rather ‘not lose’ than 'win'.
Of course we would rather win not lose - what would be the point of losing ? The best way I know to win without high risk is to investigate & make a calculated decision.
Sooner or later you have to decide when to sell, when my funds are so bloody limited, I think it's better to sell when I am in profit thtn to risk the share price going down so much and being forced to lose moneby I cant' afford or don't want to risk losing becuase I didn't understand what was going on and just let it go without looking into it....
Personal requirements, confidence & knowledge should play a role in every responsible plan, otherwise what are we doing this for ?
Part of the problem also appears to be buying such low amounts of stock (eg $1k worth) and not being able to be satisfiied with small %age increase like say 5% in a week or so, cause your buy & sell costs take away most of the profit...
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I understand what you are saying but if something is going up I don’t want to sell, I want as many as I get
Personally I think profit target are more of a reflection of the trader/investor in so much that they would rather ‘not lose’ than 'win'.
+1 to everything Jaycee said.
Also profit stops doesnt necessarily mean having to sell at the relevant profit point. Rather it can be to rethink the position in line with your strategy ( ie why has it gone up so much? Is there anything behind it? is the run running out of steam? whats the wider market doing? etc). You could decide to reset your stops at higher levels to protect some profit in case there is a reversal.
I thought we were talking investment, not the ladies' knitting circle share club.
IV and others who have been here a while know this story already so I apologise for telling it again, but it does fit the thread.
I bought $13k of a stock in '04. At it's peak (pre GFC) it was worth nearly $300k. At it's trough it was back to $200k but is rising again. How smug would I have felt selling it @ $20K?
How silly would I feel now?
While this is the best I have ever done there are three other cases where I nearly pulled it off, that is bought explorers which have done well and been bought out. Sadly in all cases the board members looked after themselves, not the shareholders.
If it was easy everyone would be doing it, but that's also true of RE.
Note: My BIG stock is a gold miner and I believe gold is not yet in a bubble. It probably will melt up someday but nobody knows when or how high. It is not inconceivable that I will eventually become a millionaire on that stock alone.
If this story inspires you, try it. I have no special skills.
I bought $13k of a stock in '04. At it's peak (pre GFC) it was worth nearly $300k. At it's trough it was back to $200k but is rising again. How smug would I have felt selling it @ $20K?
How silly would I feel now?
While this is the best I have ever done there are three other cases where I nearly pulled it off, that is bought explorers which have done well and been bought out. Sadly in all cases the board members looked after themselves, not the shareholders.
If it was easy everyone would be doing it, but that's also true of RE.
Note: My BIG stock is a gold miner and I believe gold is not yet in a bubble. It probably will melt up someday but nobody knows when or how high. It is not inconceivable that I will eventually become a millionaire on that stock alone.
If this story inspires you, try it. I have no special skills.
The intention is not to lose, but by cutting winners your overriding driver is to avoid losing money. There is nothing wrong with this view, however cutting winners will greatly reduce the profits of an account.
We are talking about two different things then. To me a Profit Stop or 'Take Profit' suggests an automatic exit not a rethink of your position.
The knitting ladie's won't let me in their club for other reasons.....
Some of us embarrasingly only havelow am ounts of money, people can & will take from this what they choose to ....
