Property or trading - where should I invest my time and money?

[Fookin]

Hi All,

I'm pretty new here and to trading so please forgive me if I seem quite niave about the whole trading game.

I currently have a bout £100K to invest and as I've always had an interest in stocks, forex, options etc (although no practical trading experience) I'm considering investing significant time to 'learn the ropes' so to speak.

In the past I've invested heavily in property and done okay although I'd like to invest in a new area and also diversify my risk.

From investing in property (which although was generally for the long term I did trade now again with short term buy and sells) I found that it was quite possible to increase your knowledge and become an expert in a particular area and do quite well for a given level of risk. The fact that a local market was quite illiquid and that there weren't that many 'experts' buying in my locaility meant a good rate iof return was very achievable if you put in the time to learn the fundamentals, buy under value and know when to sell/how to minimise risk.

On the other hand when I think of stock trading I see a very very liquid market which essentially makes it more difficult to gain an edge and ahving knowledge above a basic level, it seems to me would make little difference. I mean in order to make say 15%+ pa (for a given risk level) over the long term (so that any luck factor has been eroded) would often mean having more knowledge, skill etc than professional fund or hedge managers.

I guess what I'm trying to ask really is, if your main goal is to make the best use of your money does it really make sense to try and spend countless hours learning to trade etc when you would have to be extremely talented to do any better than someone who does this for a living?

Any thoughts guys?

 

[TAjammy]

Hi All,

I'm pretty new here and to trading so please forgive me if I seem quite niave about the whole trading game.

I currently have a bout £100K to invest and as I've always had an interest in stocks, forex, options etc (although no practical trading experience) I'm considering investing significant time to 'learn the ropes' so to speak.

In the past I've invested heavily in property and done okay although I'd like to invest in a new area and also diversify my risk.

From investing in property (which although was generally for the long term I did trade now again with short term buy and sells) I found that it was quite possible to increase your knowledge and become an expert in a particular area and do quite well for a given level of risk. The fact that a local market was quite illiquid and that there weren't that many 'experts' buying in my locaility meant a good rate iof return was very achievable if you put in the time to learn the fundamentals, buy under value and know when to sell/how to minimise risk.

On the other hand when I think of stock trading I see a very very liquid market which essentially makes it more difficult to gain an edge and ahving knowledge above a basic level, it seems to me would make little difference. I mean in order to make say 15%+ pa (for a given risk level) over the long term (so that any luck factor has been eroded) would often mean having more knowledge, skill etc than professional fund or hedge managers.

I guess what I'm trying to ask really is, if your main goal is to make the best use of your money does it really make sense to try and spend countless hours learning to trade etc when you would have to be extremely talented to do any better than someone who does this for a living?

Any thoughts guys?

well how do you think those great traders started? we all start somewhere.

Don't take investment advice from me, if you want to do longer term stuff you should check out CAN SLIM

 

[GladiatorX]

I guess what I'm trying to ask really is, if your main goal is to make the best use of your money does it really make sense to try and spend countless hours learning to trade etc when you would have to be extremely talented to do any better than someone who does this for a living?

Any thoughts guys?

If you are looking to invest your money and growth it slowly/ Rather than trade highly-leveraged products and try get a 'salary' out of trading then you should focus on longer-term approaches to trading...
- Try mutual fund timing (Entering funds when you deem appropriate rather than blind faith) if you put some research in you'll find some very well performing funds that you can get in and out of as and when the overall market seems to be doing well Check out a website called AttainCapital.com too, its interesting...
One of the main focus of long-term fund selection should be diversification, if you can find and invest in outperforming funds - Diversify across different strategies and funds that focus on different financial markets therefore lowering your risk of a large negative year.
- Try investing long-term in stocks... Better to lose money on your own entries and exits than others - Focus here on both technicals and fundamentals and sectors, plus always evaluate the over all market
- Stick money into a high yielding money market

x

 

[Technically Fundamental]

Go speak to an IFA, an accountant, a wealth manager and a bank, then weigh up your options for 97.5% of the money. Take the remaining 2.5 k and bang it in a savings account until you've learned enough to go live. Have a bash with the monkey to get used to losing real money. When you've lost it all go back to the drawing board and try again with the 2 bags and see if you have the discipline to trade. If you need to draw for more money within 12 months you've failed.

Or... get another 10k and but into quantum fund.

 

[glyder]

Why not do as TF says?
Learn to traded with a small amount or on demo. put the rest soemwhere safe.
whne you are confident increase your trading stakes and up your capital little by little.
Trading is a marathon not a sprint.
Forget that you have to beat professional fund managers. Few are any good, they are
mainly marketing men, not market men.

 

[mrsoul]

Hi All,

I'm pretty new here and to trading so please forgive me if I seem quite niave about the whole trading game.

I currently have a bout £100K to invest and as I've always had an interest in stocks, forex, options etc (although no practical trading experience) I'm considering investing significant time to 'learn the ropes' so to speak.

In the past I've invested heavily in property and done okay although I'd like to invest in a new area and also diversify my risk.

From investing in property (which although was generally for the long term I did trade now again with short term buy and sells) I found that it was quite possible to increase your knowledge and become an expert in a particular area and do quite well for a given level of risk. The fact that a local market was quite illiquid and that there weren't that many 'experts' buying in my locaility meant a good rate iof return was very achievable if you put in the time to learn the fundamentals, buy under value and know when to sell/how to minimise risk.

On the other hand when I think of stock trading I see a very very liquid market which essentially makes it more difficult to gain an edge and ahving knowledge above a basic level, it seems to me would make little difference. I mean in order to make say 15%+ pa (for a given risk level) over the long term (so that any luck factor has been eroded) would often mean having more knowledge, skill etc than professional fund or hedge managers.

I guess what I'm trying to ask really is, if your main goal is to make the best use of your money does it really make sense to try and spend countless hours learning to trade etc when you would have to be extremely talented to do any better than someone who does this for a living?

Any thoughts guys?

Definitely go for the property.
First of all, you can't make any more land.
Secondly, after the beating housing prices have taken, now is probably a great time to invest.
Thirdly, if you put up 100k trading and you have no experience, 99% chance you lose all your money.

The answer: Do both but with one caveat.

Put the bulk of you money in property and open up a $100 micro account (if you trade Forex, if stocks are your thing make sure you by the smallest size possible- I mean one share) and see if you can make ANY money.
If after seveal months, you are profitable, invest a little more.
Under no circumstances put 100K in the market with no experience.

 

[chump]

First of all get a decent name ..like mine.

Next understand cycles. You may wish to put your money back into property rather than say equities/corp bonds etc ,BUT given the latter can rotate through 3 cycles while property goes through one take an educated guess which offers the best returns if you are willing to take the time to learn.

 

[luckyd1976]

Income Producing property. This game is all about Income and Property is easier to get consistent income.

Maybe 50% Property for security of some type of income. (Remembering only to put down the miniumum needed and buy as many or as large of income stream you can.

And then definantly start small with trading and concentrate on income Options or income ST swing/dayT/scalping. But it takes some time and you can put your money elsewhere while you learn.

 

[GladiatorX]

Put all your money into a High yielding money market for now while you plan your investment; Then when your ready to start talking money out, you'll already be a few % up on the year

 

[chump]

Put all your money into a High yielding money market for now while you plan your investment; Then when your ready to start talking money out, you'll already be a few % up on the year
Check out connaught if you qualify for that. There fund is 8.5% yield at the moment and consistant.

There is no such thing as a High yielding money market. The terms are in fact a contradiction.
The example you cite is actually a business plan to to take land ,parcel it up and then try to add value by obtaining development and planning consents which in turn are expected to release funds to pay as divs with the capital remaining invested on roll over. As for consistent ,having formed only in Feb 2007 it is not in a position to use the word "consistent" ,more apt might be the expression 'so far so good'.

I'd give you a pick of one of a dozen corporate bond funds with a yield of around 7% where the asset actually owned and the income stream attached to it was a lot more proven and tangible AND without 6 months withdrawal periods.

 

[zambuck]

...Land....Land...Land....

....Property....Property....Property..,

...And a little flutter on a......small aubergine.....a la Goodness Gracious me...!

 

[jumpingjackcider]

I would agree. Put most of it away and learn to trade off 5K, half of that should be for your education and charting software and books. If you decide this is for you then you place a bit more so you can make a living.

Shunpei

 

[Hilarymannah]

The worst advice I've seen so far on the reply board is "go to your bank" lol,..I mean c'mon,..there's a financial meltdown going on due to banking negligence eg, trillions of dollars in toxic debt (derivatives). Go to maxkeiser.com and find out how the markets really work.
The most sound advice to any investor is diversify to the hilt!,..
The UN mandate for the twenty first century, states there is to be no private property, and knowing there is a complete new financial paradigm being formulated behind the scenes, I'd say just do your homework and keep your fingers crossed.
P.S: The carbon market might be a good area to look into, the infra-structure has been setting up for a few yrs now.

Carpe Diem

 

[Technically Fundamental]

The most sound advice to any investor is diversify to the hilt!

Thats good advice to give to someone who knows nothing about trading. Would have done well doing that last year eh...

Money is safer in the bank than with some fee grabbing b*stard.

Also, its good to see you're up-to-date on the research into long term portfolio diversification.

 

[Hilarymannah]

Re: Would have done well doing that last year eh...

Don't know about you TF,..but I live in the now!!,..and as far as money being safe in the banks,..lol
wakey, wakey, ..smell the coffee (what a legend)

 

[GladiatorX]

Re: Would have done well doing that last year eh...

Don't know about you TF,..but I live in the now!!,..and as far as money being safe in the banks,..lol
wakey, wakey, ..smell the coffee (what a legend)

What a legend?

Christ, thats embarrasing.

 

[Hilarymannah]

Hi Glad,

I would say listen to others, but,...sort the wheat from the chaff,...learn the art of discernment.
As you might be aware, there is a lot of chaff out there :cheesy:

 

[chump]

"diversify to the hilt" is good advice. Trouble is I have not met many people who really understand what real diversification is.And a year or so ago it was clearly shown that not many 'experts' did know either.

 

[Hilarymannah]

Hi chump,.
As you're aware, there are many "experts" out there willing to step into ones mind,..I would say, test it,..test again,.and to be sure,......just one more test.
The one person least trusted (and should be trusted 100%) is the one looking back from the mirror,...just thought of that one,.what do ya think?

Know thyself

 

[Masquerade]

Do property, you'll lose your money trading. But if you want - put £90k in property and trade with £10k. If you're good you'll be able to make that £10k a good sum.