Re: Personal Investment Strategy Help.
I guess one confirmation of it is that I am still in a cash position as I learn.
That may have cost you quite a bit in lost opportunity.
How long have you been sitting on that?
Have you seen no opportunities in the market that made sense during the time of doing nothing?
Fear is a position.
When you enter the market it can magnify fear dramatically and you cans see things you never saw before entering especially if it moves against you.
That in itself is something you need to get used to or learn just not to look until your programmed SMS tells you to sell or conditional order is filled etc. Plan what you are going to do once the position is taken not just with the trade.
Wisdom to be able to properly assess a business’s ............. it just exposes a hundred more layers to understand!
There's a bit of wisdom for you.
Why even assume the market is where the money is?
It may be, mostly it isn't, well not in the quantities that most are expecting - some vague dream of riches!
If it's not blatantly obvious and the odds are stacked against you why the hell would you play it?
As you have sensibly not done since lesson 1.
What is disturbing, is that you reappear now as global markets are recording highs during recession like environments.
Why wouldn't you have perked up when all hell was breaking lose.
People who were stuck in set and forget mode would have killed for cash at that time.
Your instincts seem way out, doesn’t matter just know that your instincts are f#(<ed up. So ignore them!
You can make an entire years profit on one trade if you let it come to you.
You can lose the lot as you know, if you try to make something out of nothing.
Nothing comes from nothing.
A conservative well tested momentum strategy can be a great safe way to make a modest return from a very risky pool.
What I feel would be good would be to use a well tested one that is not expensive like Nicks growth, but at the same time if ever the blindingly obvious is staring you in the face……..take it!
Example, I had a friend who hated the stock market and would not invest. I told her to put everything thing she had to spare in CBA when it was $28 during the GFC and forget about it and just take the dividends.
To me that was as risk free as keeping it in a CBA interest earning account, where it still is at half the price, with half the dividends and all taxed.
There are opportunities. You just have to allow them to present to you and know yourself well enough to know how you are going to manage them so you stick to them when CBA is punished down to 25.whatever for a day!
For her it would have been easy because she would never have known what was going on.
She would have just been getting lovely fat tax free dividend cheques. Whilst having smashed every trading strategy around!
Everyone says not to do that kind of thing.
Everyone can be wrong. But only if you can see the blindingly obvious!
There are consistent strategies that work.
There are also opportunities that present; you don't need to look for them.
But you do need to be open to them.
But it’s all useless unless you know what you can and can’t handle that’s a kind of art or practice.
It comes to some naturally, others learn over time others don’t have it in their nature.
Regardless, there
is a way for all types.