kel
Ostrich
Those of you who do this day-trading or very short-term swing trading that seems to be discussed above - can I ask how much you might put into any one trade? As a percentage of your total worth/investment I suppose, to make it clear.
For instance, I do not do the kind of trading above (due to risk aversion and lack of time, mainly). I invest in things I either know myself and have faith in the product (which doesn't mean the financials are there, I know, but this is my metric still) or things I get a hop tip on or things I just sorta search like "Hmmm, I think water utilities will be important in the future, lemme see what water utility stocks people online say are 'good'". I buy, set a few sale points that kinda seem ridiculous but have been paying off the last few years (sell half when it doubles, the other half when it doubles again) and mostly forget about it. I invest usually about 3% of my wealth at a time like this (and I invest essentially all my savings, which is maybe risky, but losing money to inflation and missing out on how the rich get richer is also risky).
To be honest, this has been a decent strategy for me, but also you'd have to be the least lucky person in the world to have failed to make money hand over fist in the recent market, so I'm not promoting this exactly. It's what I do, and I suspect is a reasonable strategy for someone like me (yuppie who works long hours, can't be trading that aggressively unless I'm going to make it a full or part-time job and re-evaluate my current job accordingly).
Now, when I see people saying they're reaping 25% on very short-term trades, obviously that gets the noggin' joggin'. It's dangerous to think this way, but of course you can imagine "hmm, I get 25% this week, 10% the next week, 15% the following week", you're essentially doing compound interest at a very high rate and over very short periods and, strung together, you're doubling and tripling your wealth fairly quickly. But, also, you're risking it collapsing, too, naturally. I know it's not that simple, but still it makes me wonder how much those of you doing this invest in such trades, how much time you spend actively trading. Tbh I wish I had a close, trusted friend who does this kind of thing, is successful at it, and I could give him my money and say "Here, make magic".
For instance, I do not do the kind of trading above (due to risk aversion and lack of time, mainly). I invest in things I either know myself and have faith in the product (which doesn't mean the financials are there, I know, but this is my metric still) or things I get a hop tip on or things I just sorta search like "Hmmm, I think water utilities will be important in the future, lemme see what water utility stocks people online say are 'good'". I buy, set a few sale points that kinda seem ridiculous but have been paying off the last few years (sell half when it doubles, the other half when it doubles again) and mostly forget about it. I invest usually about 3% of my wealth at a time like this (and I invest essentially all my savings, which is maybe risky, but losing money to inflation and missing out on how the rich get richer is also risky).
To be honest, this has been a decent strategy for me, but also you'd have to be the least lucky person in the world to have failed to make money hand over fist in the recent market, so I'm not promoting this exactly. It's what I do, and I suspect is a reasonable strategy for someone like me (yuppie who works long hours, can't be trading that aggressively unless I'm going to make it a full or part-time job and re-evaluate my current job accordingly).
Now, when I see people saying they're reaping 25% on very short-term trades, obviously that gets the noggin' joggin'. It's dangerous to think this way, but of course you can imagine "hmm, I get 25% this week, 10% the next week, 15% the following week", you're essentially doing compound interest at a very high rate and over very short periods and, strung together, you're doubling and tripling your wealth fairly quickly. But, also, you're risking it collapsing, too, naturally. I know it's not that simple, but still it makes me wonder how much those of you doing this invest in such trades, how much time you spend actively trading. Tbh I wish I had a close, trusted friend who does this kind of thing, is successful at it, and I could give him my money and say "Here, make magic".
