Really dumb question about shares
- Thread starter luce.rocks
- Start date
Luce
How do you make a small fortune share trading ?
Start with a large one.....
They quote figures that 90 % of people who buy shares loose money . It's addictive , deceptively simple but in practice very hard to make consistent money share trading . I was into shares before I got into property.
In year 11 I bought shares in a penny dreadfull called offshore oil at 1 1/2 cents and sold them for 3 cents .....
I'm an arm chair expert in shares and have spent lots of time developing Systems for trading and have one that on multiple back testing including monte carlo testing makes around 30 - 40 % can only find one time frame that it doesn't work . Unfortunetly that was the one time I actually started trading it .....I will get back to it at some stage , but at the moment the property market is too good to resist and much more reliable.
My best investment decision ever occured leading up to the GCF , We'd sold a property in our SMSF and had a large amount of cash which I was going to invest in the Market . Looking at the market it was trending down so I waited , and waited and it kept on going down.
Don't go into the share market looking for an easy way to make money. It isn't .
It's a challange . If you want a challange and are prepared to loose money initially but persist for the long haul I've been told it can be rewarding.
Most people who tell you how much they've made are bullsh..ting
Cliff
How do you make a small fortune share trading ?
Start with a large one.....
They quote figures that 90 % of people who buy shares loose money . It's addictive , deceptively simple but in practice very hard to make consistent money share trading . I was into shares before I got into property.
In year 11 I bought shares in a penny dreadfull called offshore oil at 1 1/2 cents and sold them for 3 cents .....
I'm an arm chair expert in shares and have spent lots of time developing Systems for trading and have one that on multiple back testing including monte carlo testing makes around 30 - 40 % can only find one time frame that it doesn't work . Unfortunetly that was the one time I actually started trading it .....I will get back to it at some stage , but at the moment the property market is too good to resist and much more reliable.
My best investment decision ever occured leading up to the GCF , We'd sold a property in our SMSF and had a large amount of cash which I was going to invest in the Market . Looking at the market it was trending down so I waited , and waited and it kept on going down.
Don't go into the share market looking for an easy way to make money. It isn't .
It's a challange . If you want a challange and are prepared to loose money initially but persist for the long haul I've been told it can be rewarding.
Most people who tell you how much they've made are bullsh..ting
Cliff
That is what 'shares experts' say. They show the ASX top 100's performance over time and say "look... in long term it does better than properties".
I always wonder what they do with disappeared stocks like oneTel? Or what if some stocks drop off the top 100 list??
Similarly, median property prices also don't include the investment injected like new constructions.
This is why the Index looks good. Its always top X companies and ones that dont make the cut are substituted out.
It doesnt have to be as difficult as cliff makes it out to be though, though I guess it is if you're trading. Investing is simpler imo; find businesses I actually want to be a part of and buy them at a discount to their calculated value amd you cant go too far wrong.
I was hopeless at trading. Tried it a few times. I realised the people who do well at it - and they're usually the ones who don't talk about how well they do - are the people who are really, really interested in it. I wasn't sufficiently interested in it to be good at it.
During the dot com boom I made a bit of money - and then lost it. My best trade was Davnet. It was one of those classic dot com stocks that went from a couple of cents up to $6 I think really quickly. Then it went to nothing.
I was using a broker who was doing lots of stuff with the dot com stocks and it's a while ago so I forget the details, but I called him and asked him to buy me '40,000 Davnet'. It was a pure punt.
I had meant 40,000 shares and they might have been trading at 20 cents or something, but I found out that night he had bought $40,000 worth of the things.
Of course the next day, they were up. And the day after that they were, too. I thought I was pretty clever. I sold and took the profits and then lost those profits.
During the dot com boom I made a bit of money - and then lost it. My best trade was Davnet. It was one of those classic dot com stocks that went from a couple of cents up to $6 I think really quickly. Then it went to nothing.
I was using a broker who was doing lots of stuff with the dot com stocks and it's a while ago so I forget the details, but I called him and asked him to buy me '40,000 Davnet'. It was a pure punt.
I had meant 40,000 shares and they might have been trading at 20 cents or something, but I found out that night he had bought $40,000 worth of the things.
Of course the next day, they were up. And the day after that they were, too. I thought I was pretty clever. I sold and took the profits and then lost those profits.
I'm not talking about those " experts " . The people I'd listen to are people like Louise Bedford Nick Radge and even Darryl Guppy who are active traders , short to medium term .
The ones who point to the ASX and show how it grows over the long term are the share equivalent of property experts who say its time in the market , not timing . I'm always into timing .
Most important thing with shares is knowing when to get out .
In property the important thing is knowing when to get in . ( IMHO )
Mmm sounds like a quotable quote ...
Cliff
That is gold!
IMHO, most important thing with shares is money/capital protection, lose it, then you cannot get in or get out (from what), right?
That's why I like property, as the risk/reward/effort is certainly different between those two asset classes, right?
Maybe one could do well if one was able to predict technological innovation or forecasting historical events they all seem to play a big part in any movement in equity markets,some that I buy and sell into above the $60.00 range will go down or up in value every day,over a 16 period
you could break the profit zones in a few days within that 16 week period
depending on when the div,s various other consequences but from experience the ones that make the money are the least predictable ones that are are traded in the blink of your eyes..
Lost by reinvesting in more dotcoms?
Davnet was great. I remember there was a day wherein it went from 20 to 24 cents and I bought and sold in the same day. As you know, with most brokers, when you buy and sell in the same day, no money needs to be moved from your account and they just put the profit into your account. So when 4k was placed into my account three days later on settlement, it just felt like magic.
I agree that consistent earnings are difficult to obtain from share trading but it has been my experience that it is not hard to pull out the occasional 1 to 5k from share trading. I think the key is not to be greedy and to get out as soon as you have made a little profit. And not to be fussed to see the share price skyrocketing upwards after you have sold it.
Have a look at OSH and FMS tomorrow.
Years ago I had 20,000 OSH at $1.20.
If you buy and hold over a long period I think you are most likely to make a good profit. The same can be said about property.
But shares can be more dynamic eg several years ago FMS went from 1c to 9 c in one day, within several weeks it was about 20c. It was 30c a year or two ago. Today it is 3c
DYOR. Never buy on my advice!
Years ago I had 20,000 OSH at $1.20.
If you buy and hold over a long period I think you are most likely to make a good profit. The same can be said about property.
But shares can be more dynamic eg several years ago FMS went from 1c to 9 c in one day, within several weeks it was about 20c. It was 30c a year or two ago. Today it is 3c
DYOR. Never buy on my advice!
Do you guys trade on CommSec or E-trade platforms? I remember in 2007 and Jan 2008, CommSec had total morning meltdowns due to the sheer panic selling after huge global sell-offs. People could neither trade out of their positions or trade in. People were just stuck in huge loss positions. Comm Sec just froze. It was truly scary and it was then that I realised we were at the mercy of these trading platforms that were less than perfect.
What sort of time-frame are you trading?
If it's less than 12 months aren't you losing half the profit in tax?
My limited experince is that you let your profits run and sell your losses while they're small.
Sounds like you're doing the opposite.
Selling you profits to lock in a small profit and hanging on to the losses in the hope they come back up.
I'd be revisiting that .
Cliff
Sounds like you're doing the opposite.
Selling you profits to lock in a small profit and hanging on to the losses in the hope they come back up.
I'd be revisiting that .
Cliff
Cliff[/QUOTE]
Actually when you are running a loss you can buy more shares so that you "average down" your break even price. I've done this several times, but you must wait (sometimes years) for the share price to reach the break even price.
On the flipside if your shares are going up, you can buy more to "average up".
Actually when you are running a loss you can buy more shares so that you "average down" your break even price. I've done this several times, but you must wait (sometimes years) for the share price to reach the break even price.
On the flipside if your shares are going up, you can buy more to "average up".
