Mainly ?
Don't try to achieve the impossible - aim at between 3% and 6% over Inflation and you wil make steady money ... if you waste your time and money chasing the elusive "10 baggers" (sahres that return 10x your investment), Penny Shares and AIM shares you are likely to end up worse off than putting your money in a building society.
NB. right now the markets are having a bit of a panic .. might be a good tine to go bargain hunting :-)
2007-06-08 01:06:26
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answer #1
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answered by Steve B 7
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One decades long professional studier of market traders used to begin his introductory seminars with the claim that 98% of new traders will leave the market within two years having lost some, all, or more than all of their capital.
He also claimed, after studying the success behaviors of over 6,000 market traders, that trading success is 60% the psychology of the trader, 30% money management, and 10% everything else.
Alas, your question about "share portfolio" seems to be focused on the everything else when your real focus needs to be on yourself and your decisions.
One result of other studies which shouldn't be surprising at all is that the latest and greatest market beating techniques or programs usually fail within two years. Why? Because they rely on some insight or edge into how the markets work AND either the promoters sell so many copies of the stuff or others independently discover the same stuff that the market is flooded with people all trying to trade the same way -- which makes that way fail [that market niche becomes oversaturated].
By contrast, a professional trader knows those things happen and so he continually looks for new little niches that no one seems to be working [besides himself]. These he exploits until the risk/return tradeoff isn't worth his time any more and then he moves on.
This means that he has the ability to detect when the return from a particular type of trade isn't worth the risk involved; which in turn implies that he can quantify both the likely return, the risk, and figure out when and why a particular trade type no longer is working.
If you can't do those things, as well as manage your psychology effectively, AND manage your money situation effectively, I suggest that you need to learn a lot more before you begin plunging on the markets.
Remember, any fool can make money in a strongly trending market -- but when the trend ends, the fool usually loses everything he's got.
GL
2007-06-08 01:16:57
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answer #2
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answered by Spock (rhp) 7
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Buy low, sell high. A portfolio full of non-ethical high return stocks and good inside information.
2007-06-08 01:03:32
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answer #3
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answered by Spotlight 5
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Ha ha if there was a sure way to do that we would all be millionaires! Sadly all you have is common sense and a bit of luck
2007-06-08 01:05:05
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answer #4
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answered by Anonymous
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my partner works for credit suisse, il ask him and get back to you lol
2007-06-08 01:03:47
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answer #5
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answered by KnOwLeDgE_iS_PoWeR 3
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