Fair play to you doing the video. The reality is that It's not quite as straightforward as that.
http://stockmarketalmanac.co.uk/wp-content/uploads/2014/01/FTSE-100-inflation-adjusted-1984-2013.png
You must also adjust for inflation.
Please also read Nassim Nicholas Taleb's black swan and also fooled by randomness, to appreciate the fallacy of back-fitting performance, then saying "if i had only done X or Y then look how well i would have done".
That being said, you'd be better gambling £15 a month in the stock-market than at the bookmakers.
I did a thing called Virtual trader which is based on the real market at uni for an assignment, funnily enough most folk made a lot of virtual cash by just doing a bit of research. Saving my cash these days though as I do see it as gambling.
United I wouldn't invest in just now. Not sure how Brexit will impact getting footballers over here. Could go bad. And if the players go elsewhere so will the cash. Never mind the lack of success for Utd, longer it goes the dimmer view the market will take for things like advertising. Then add in growing Chinese game, I'd potentially go short on Utd if anything
One of my mentors who invests regularly in the stock market and has a PHD in finance did some research and found that if you invest just £15 a month into the stock market over the period of 10 years you stand to gain over £87k. Whilst investing over 20 Years = £300k+
----------------------------
I'd like to see the research here. What stocks is he investing in to get such a magnificent return?
Has he just gotten lucky and invested in Twitter etc. at the right time?
I would love to know what to invest in for the next decade, to return £85k from £1.8k.
Does your mentor give tips?
Also, hats off for doing the video and sharing
I hope you make a big success of it, good luck
comment by Admin1 (U1)
posted 12 minutes ago
Fair play to you doing the video. The reality is that It's not quite as straightforward as that.
http://stockmarketalmanac.co.uk/wp-content/uploads/2014/01/FTSE-100-inflation-adjusted-1984-2013.png
You must also adjust for inflation.
Please also read Nassim Nicholas Taleb's black swan and also fooled by randomness, to appreciate the fallacy of back-fitting performance, then saying "if i had only done X or Y then look how well i would have done".
That being said, you'd be better gambling £15 a month in the stock-market than at the bookmakers.
----------------------------------------------------------------------
Thanks for the feedback. Much appreciated. Of course, there are risks, but the idea is not to 'play the game' as such and look for a business that's going to blow up, but instead bet on the horse that's already winning and wait patiently. When you think about the amount of money we spend on football, whether it be season tickets or accumulators, we can literally afford to throw this money away. If we invested the same in the stock market it would be very unlikely that you would lose it all.
I invested £4000 in a stocks and shares ISA (obviously not quite the same as directly investing in the stock market) in June 2001. Wasn't entirely clued up, but saw that the potential there was in theory far greater than just leaving the money in a bank account.
However a few months later I was already £1200 down, due in no small part to a significant event happening across the pond and subsequent events over the next couple of years led to me being out of pocket on paper.
The stock market eventually got back on an even keel, and I was back in the black, but it had taken a few years. I was wondering whether to sell up for a small profit or continue an look for a greater return. I stuck with it.
Then there was the banking crisis and I was yet again plunged into a loss on my initial investment. Gutted. Again I stuck with it and watched as my investment got back into the black and showed a paper profit.
Eventually I cashed in the ISA, and put the money into a savings account. That was in 2012. I cashed it in and got back £5300. So I made £1300 on a £4000 investment.
But that was after nearly 11 years... I remember doing some sums and it worked out that if I'd put the money in an ordinary account and was paid just over 2% interest, I'd have made more than what I did in the Stocks and Shares ISA. I'd had a decent bank account alongside this just before the banking crisis and it was paying 5%, so I've majorly lost out investing in stocks and shares.
Something that would make me wary now about re-investing in shares right now is that the FTSE is currently at a record high I think. So someone would be investing right at the top of the market, and there is more than a bit of uncertainty in the world at the moment with the situation in the US, not to mention the UK/Eu divorce to make me think there could be a decent sized fall not a million miles away.
comment by Beckham's Barnet (U13709)
posted 25 seconds ago
comment by Admin1 (U1)
posted 12 minutes ago
Fair play to you doing the video. The reality is that It's not quite as straightforward as that.
http://stockmarketalmanac.co.uk/wp-content/uploads/2014/01/FTSE-100-inflation-adjusted-1984-2013.png
You must also adjust for inflation.
Please also read Nassim Nicholas Taleb's black swan and also fooled by randomness, to appreciate the fallacy of back-fitting performance, then saying "if i had only done X or Y then look how well i would have done".
That being said, you'd be better gambling £15 a month in the stock-market than at the bookmakers.
----------------------------------------------------------------------
Thanks for the feedback. Much appreciated. Of course, there are risks, but the idea is not to 'play the game' as such and look for a business that's going to blow up, but instead bet on the horse that's already winning and wait patiently. When you think about the amount of money we spend on football, whether it be season tickets or accumulators, we can literally afford to throw this money away. If we invested the same in the stock market it would be very unlikely that you would lose it all.
----------------------------------------------------------------------
Patience is probably the thing most 'gamblers' have the least of though unfortunately.
I've noticed it when people try those £10 to £1000 betting plans that follow other peoples tips (terrible idea anyway), the idea being to start very small and each bet place the winnings on another safe choice, building up the kitty.
People don't even have the patience for those, and end up adding in their own tips to boost the profits, usually resulting in a loss.
The ftse100 is also an interesting one, as 2-3 companies per year drop out. So unless you are diversified with 40+ companies, there is a risk, you pick one of the imploding dogs. If you are diversified by more than 5-6 companies then you probably haven't researched each one enough.
Case in point:
My brother much against my advice invested in "yell.com" when it was ftse 100. Invested in at 400p and sold out at around 10p. That made up about 1/5 of his portfolio
comment by RenegadeOF (U9457)
posted 15 minutes ago
I did a thing called Virtual trader which is based on the real market at uni for an assignment, funnily enough most folk made a lot of virtual cash by just doing a bit of research. Saving my cash these days though as I do see it as gambling.
United I wouldn't invest in just now. Not sure how Brexit will impact getting footballers over here. Could go bad. And if the players go elsewhere so will the cash. Never mind the lack of success for Utd, longer it goes the dimmer view the market will take for things like advertising. Then add in growing Chinese game, I'd potentially go short on Utd if anything
----------------------------------------------------------------------
I think I've heard of virtual trader but not paid much attention to anything technological when it comes to the stock market thus far as like yourself, I always saw it as gambling. For now I just want to get a firm grasp on the basics so that I can do the minimum and put something aside every month that i'd normally throw away.
comment by RenegadeOF (U9457)
posted 18 minutes ago
I did a thing called Virtual trader which is based on the real market at uni for an assignment, funnily enough most folk made a lot of virtual cash by just doing a bit of research. Saving my cash these days though as I do see it as gambling.
United I wouldn't invest in just now. Not sure how Brexit will impact getting footballers over here. Could go bad. And if the players go elsewhere so will the cash. Never mind the lack of success for Utd, longer it goes the dimmer view the market will take for things like advertising. Then add in growing Chinese game, I'd potentially go short on Utd if anything
----------------------------------------------------------------------
Oh, and thanks for the tip on United, I'll wait I think. Didn't feel that attractive to me in the first place, other than to say I own a piece of the club.
comment by Bunteh - Phil Jones' face (U10372)
posted 19 minutes ago
One of my mentors who invests regularly in the stock market and has a PHD in finance did some research and found that if you invest just £15 a month into the stock market over the period of 10 years you stand to gain over £87k. Whilst investing over 20 Years = £300k+
----------------------------
I'd like to see the research here. What stocks is he investing in to get such a magnificent return?
Has he just gotten lucky and invested in Twitter etc. at the right time?
----------------------------------------------------------------------
Hey, thanks for your question. So what he did was something called a future value of annuity calculation. It's like something you can do relatively quickly based on a hypothesis. he's bough a meal from an airport and he wondered what would happen if he invested that money he spent on the meal in the stock market over a period of time so he did a calculation based on the historical performance of the stock market over any 10 year period in history and every time he made a profit.
It's not based on his own dealings as far as I know but I don't know how much he's worth, just that he's a very successful businessman and a finance PHD,
comment by Mike (U1170)
posted 22 minutes ago
I would love to know what to invest in for the next decade, to return £85k from £1.8k.
Does your mentor give tips?
----------------------------------------------------------------------
He said (based on the historical performance of the stock market), as long as you have a well-diversified portfolio you stand to gain that much. I would advise going for businesses that are already winning and unlikely to fold easily within a 10 year period. eBay stocks are worth $30 right now.
comment by Mike (U1170)
posted 18 minutes ago
Also, hats off for doing the video and sharing
I hope you make a big success of it, good luck
----------------------------------------------------------------------
Thanks, bud. Much appreciated.
That's just my own opinion on United shares.
But the markets tend to move on opinions anyway. So if that comes to my mind straight away expect a lot more to as well.
comment by Serge Muhmenthaler (U15867)
posted 17 minutes ago
I invested £4000 in a stocks and shares ISA (obviously not quite the same as directly investing in the stock market) in June 2001. Wasn't entirely clued up, but saw that the potential there was in theory far greater than just leaving the money in a bank account.
However a few months later I was already £1200 down, due in no small part to a significant event happening across the pond and subsequent events over the next couple of years led to me being out of pocket on paper.
The stock market eventually got back on an even keel, and I was back in the black, but it had taken a few years. I was wondering whether to sell up for a small profit or continue an look for a greater return. I stuck with it.
Then there was the banking crisis and I was yet again plunged into a loss on my initial investment. Gutted. Again I stuck with it and watched as my investment got back into the black and showed a paper profit.
Eventually I cashed in the ISA, and put the money into a savings account. That was in 2012. I cashed it in and got back £5300. So I made £1300 on a £4000 investment.
But that was after nearly 11 years... I remember doing some sums and it worked out that if I'd put the money in an ordinary account and was paid just over 2% interest, I'd have made more than what I did in the Stocks and Shares ISA. I'd had a decent bank account alongside this just before the banking crisis and it was paying 5%, so I've majorly lost out investing in stocks and shares.
Something that would make me wary now about re-investing in shares right now is that the FTSE is currently at a record high I think. So someone would be investing right at the top of the market, and there is more than a bit of uncertainty in the world at the moment with the situation in the US, not to mention the UK/Eu divorce to make me think there could be a decent sized fall not a million miles away.
----------------------------------------------------------------------
I learned a lot from this comment. Thank you for sharing your experience. I'll definitely have to bear this in mind but I really found it admirable that you didn't panic through all that and help on to your money. The important thing I will to take away from your story is that you went through all that (including a financial crisis) and still made a profit. You didn't lose all of it because you held on and waited for the dips to even out. I'm not saying it could have gone worse but that is very encouraging.
comment by Mike (U1170)
posted 19 minutes ago
comment by Beckham's Barnet (U13709)
posted 25 seconds ago
comment by Admin1 (U1)
posted 12 minutes ago
Fair play to you doing the video. The reality is that It's not quite as straightforward as that.
http://stockmarketalmanac.co.uk/wp-content/uploads/2014/01/FTSE-100-inflation-adjusted-1984-2013.png
You must also adjust for inflation.
Please also read Nassim Nicholas Taleb's black swan and also fooled by randomness, to appreciate the fallacy of back-fitting performance, then saying "if i had only done X or Y then look how well i would have done".
That being said, you'd be better gambling £15 a month in the stock-market than at the bookmakers.
----------------------------------------------------------------------
Thanks for the feedback. Much appreciated. Of course, there are risks, but the idea is not to 'play the game' as such and look for a business that's going to blow up, but instead bet on the horse that's already winning and wait patiently. When you think about the amount of money we spend on football, whether it be season tickets or accumulators, we can literally afford to throw this money away. If we invested the same in the stock market it would be very unlikely that you would lose it all.
----------------------------------------------------------------------
Patience is probably the thing most 'gamblers' have the least of though unfortunately.
I've noticed it when people try those £10 to £1000 betting plans that follow other peoples tips (terrible idea anyway), the idea being to start very small and each bet place the winnings on another safe choice, building up the kitty.
People don't even have the patience for those, and end up adding in their own tips to boost the profits, usually resulting in a loss.
----------------------------------------------------------------------
Haha well, I guess there's always someone looking for a quick way to get rich. I got sucked into it for a bit, but now I've got the extra cash, I would be much more open to the patient approach. I'll save the panic decisions for my fantasy football team.
comment by RenegadeOF (U9457)
posted 3 minutes ago
That's just my own opinion on United shares.
But the markets tend to move on opinions anyway. So if that comes to my mind straight away expect a lot more to as well.
----------------------------------------------------------------------
Fair enough. I think you made a valid point but I'll obviously have to do my own research too and make up my own mind.
comment by Admin1 (U1)
posted 26 minutes ago
The ftse100 is also an interesting one, as 2-3 companies per year drop out. So unless you are diversified with 40+ companies, there is a risk, you pick one of the imploding dogs. If you are diversified by more than 5-6 companies then you probably haven't researched each one enough.
Case in point:
My brother much against my advice invested in "yell.com" when it was ftse 100. Invested in at 400p and sold out at around 10p. That made up about 1/5 of his portfolio
----------------------------------------------------------------------
Ohhh I see! Yes, I think the way to play it is to keep a wide portfolio. I wouldn't put all my eggs in one basket. Thanks for sharing that tip though. I didn't know about the 2-3 ftse 100 companies dropping out every year. I'm going to spend a good few months digging into this before I invest anything. I'm only planning to invest what I can afford to lose.
I started investing in shares in 1997. I put 6000 in a tracker fund - tracking the FTSE100. Today it is worth £15500. However, it went down at one stage to about £3000 after the twin towers. It recovered but then went down to about £5000 in 2008. Remember you never lose money if you don't sell. But you have to be able to afford not to sell. I always had other money invested in national savings, premium bonds and cash ISA's so I didnt't have to sell As you can see , over the long term I have made a substantial profit. I have more money now invested in some equity funds. These are more expensive to run than tracker funds but the same principles apply always have some safe forms of savings to fall back on when stock markets are struggling. Funds are better than individual shares cos the risks are spread. I am showing a profit of 22k after investing in funds over the last 10 years. However the only single firm I hold is BT and I am losing £1200. I only bought these when I had a cash ISA maturing and I used the money to invest in BT just before they got the champions league. Initially they went up but now I am losing. I won't lose unless I sell. I will wait and hopefully they will rise over the next couple of years. Fortunately I am not in a position where I need to sell. I will never buy a single company again. Hope this helps.
comment by Beckham's Barnet (U13709)
posted 40 minutes ago
comment by Serge Muhmenthaler (U15867)
posted 17 minutes ago
I invested £4000 in a stocks and shares ISA (obviously not quite the same as directly investing in the stock market) in June 2001. Wasn't entirely clued up, but saw that the potential there was in theory far greater than just leaving the money in a bank account.
However a few months later I was already £1200 down, due in no small part to a significant event happening across the pond and subsequent events over the next couple of years led to me being out of pocket on paper.
The stock market eventually got back on an even keel, and I was back in the black, but it had taken a few years. I was wondering whether to sell up for a small profit or continue an look for a greater return. I stuck with it.
Then there was the banking crisis and I was yet again plunged into a loss on my initial investment. Gutted. Again I stuck with it and watched as my investment got back into the black and showed a paper profit.
Eventually I cashed in the ISA, and put the money into a savings account. That was in 2012. I cashed it in and got back £5300. So I made £1300 on a £4000 investment.
But that was after nearly 11 years... I remember doing some sums and it worked out that if I'd put the money in an ordinary account and was paid just over 2% interest, I'd have made more than what I did in the Stocks and Shares ISA. I'd had a decent bank account alongside this just before the banking crisis and it was paying 5%, so I've majorly lost out investing in stocks and shares.
Something that would make me wary now about re-investing in shares right now is that the FTSE is currently at a record high I think. So someone would be investing right at the top of the market, and there is more than a bit of uncertainty in the world at the moment with the situation in the US, not to mention the UK/Eu divorce to make me think there could be a decent sized fall not a million miles away.
----------------------------------------------------------------------
I learned a lot from this comment. Thank you for sharing your experience. I'll definitely have to bear this in mind but I really found it admirable that you didn't panic through all that and help on to your money. The important thing I will to take away from your story is that you went through all that (including a financial crisis) and still made a profit. You didn't lose all of it because you held on and waited for the dips to even out. I'm not saying it could have gone worse but that is very encouraging.
----------------------------------------------------------------------
I don't think that was the lesson to be taken from this tale. In general in a standard savings account the funds invested in the ISA would have been bettered through standard interest over that period of time.
It is slightly different investing in an ISA as it's a FTSE100 tracker generally, plus some catastrophic global events over that period had a massive effect on the market values - 9/11 in 2001 and the market crash in 2007. But still the lesson to be learnt here is that even over the longer term safer investments can still come out on top.
The crisis in 2007 may still be eclipsed by the Brexit thing over the next few years, especially as May is about to give a speech on it tomorrow and going for a hard brexit, no single market, no customs union etc. I wouldn't be surprised to see the markets react to that tomorrow and the pound is continuing to plummet.
I'm an accountant (full time) and a forex and commodities trader on the side.
These are highly risky markets and certainly wouldn't recommend.
But, I make a decent second income following a strict but simples rules based strategy I developed. Patience is absolutely the key in these things. It helps that I don't need to make an income from capital markets. Can't imagine how stressful that must be.
I do it for fun and cos I have a general interest in economics. I think of it as a game, a risky game but using money I can afford to lose.
comment by (U1465)
posted 22 minutes ago
I started investing in shares in 1997. I put 6000 in a tracker fund - tracking the FTSE100. Today it is worth £15500. However, it went down at one stage to about £3000 after the twin towers. It recovered but then went down to about £5000 in 2008. Remember you never lose money if you don't sell. But you have to be able to afford not to sell. I always had other money invested in national savings, premium bonds and cash ISA's so I didnt't have to sell As you can see , over the long term I have made a substantial profit. I have more money now invested in some equity funds. These are more expensive to run than tracker funds but the same principles apply always have some safe forms of savings to fall back on when stock markets are struggling. Funds are better than individual shares cos the risks are spread. I am showing a profit of 22k after investing in funds over the last 10 years. However the only single firm I hold is BT and I am losing £1200. I only bought these when I had a cash ISA maturing and I used the money to invest in BT just before they got the champions league. Initially they went up but now I am losing. I won't lose unless I sell. I will wait and hopefully they will rise over the next couple of years. Fortunately I am not in a position where I need to sell. I will never buy a single company again. Hope this helps.
----------------------------------------------------------------------
Thanks for this! This is really interesting. I haven't heard anything about funds yet. I'm going to look into that. As for BT, definitely hold onto those shares. Don't they pretty much own a monopoly on all of the underground cabling?
I think with companies like that, I'm not going to be selling based on temporary losses, even if they do seem big at the time.
Thanks for sharing this. I've got a lot of research to do still it seems
I'm happy investing in property. I think it's not done to bad for me.
Sign in if you want to comment
Footy Accumulators vs The Stock Market
Page 1 of 2
posted on 16/1/17
Fair play to you doing the video. The reality is that It's not quite as straightforward as that.
http://stockmarketalmanac.co.uk/wp-content/uploads/2014/01/FTSE-100-inflation-adjusted-1984-2013.png
You must also adjust for inflation.
Please also read Nassim Nicholas Taleb's black swan and also fooled by randomness, to appreciate the fallacy of back-fitting performance, then saying "if i had only done X or Y then look how well i would have done".
That being said, you'd be better gambling £15 a month in the stock-market than at the bookmakers.
posted on 16/1/17
I did a thing called Virtual trader which is based on the real market at uni for an assignment, funnily enough most folk made a lot of virtual cash by just doing a bit of research. Saving my cash these days though as I do see it as gambling.
United I wouldn't invest in just now. Not sure how Brexit will impact getting footballers over here. Could go bad. And if the players go elsewhere so will the cash. Never mind the lack of success for Utd, longer it goes the dimmer view the market will take for things like advertising. Then add in growing Chinese game, I'd potentially go short on Utd if anything
posted on 16/1/17
One of my mentors who invests regularly in the stock market and has a PHD in finance did some research and found that if you invest just £15 a month into the stock market over the period of 10 years you stand to gain over £87k. Whilst investing over 20 Years = £300k+
----------------------------
I'd like to see the research here. What stocks is he investing in to get such a magnificent return?
Has he just gotten lucky and invested in Twitter etc. at the right time?
posted on 16/1/17
I would love to know what to invest in for the next decade, to return £85k from £1.8k.
Does your mentor give tips?
posted on 16/1/17
Also, hats off for doing the video and sharing
I hope you make a big success of it, good luck
posted on 16/1/17
comment by Admin1 (U1)
posted 12 minutes ago
Fair play to you doing the video. The reality is that It's not quite as straightforward as that.
http://stockmarketalmanac.co.uk/wp-content/uploads/2014/01/FTSE-100-inflation-adjusted-1984-2013.png
You must also adjust for inflation.
Please also read Nassim Nicholas Taleb's black swan and also fooled by randomness, to appreciate the fallacy of back-fitting performance, then saying "if i had only done X or Y then look how well i would have done".
That being said, you'd be better gambling £15 a month in the stock-market than at the bookmakers.
----------------------------------------------------------------------
Thanks for the feedback. Much appreciated. Of course, there are risks, but the idea is not to 'play the game' as such and look for a business that's going to blow up, but instead bet on the horse that's already winning and wait patiently. When you think about the amount of money we spend on football, whether it be season tickets or accumulators, we can literally afford to throw this money away. If we invested the same in the stock market it would be very unlikely that you would lose it all.
posted on 16/1/17
I invested £4000 in a stocks and shares ISA (obviously not quite the same as directly investing in the stock market) in June 2001. Wasn't entirely clued up, but saw that the potential there was in theory far greater than just leaving the money in a bank account.
However a few months later I was already £1200 down, due in no small part to a significant event happening across the pond and subsequent events over the next couple of years led to me being out of pocket on paper.
The stock market eventually got back on an even keel, and I was back in the black, but it had taken a few years. I was wondering whether to sell up for a small profit or continue an look for a greater return. I stuck with it.
Then there was the banking crisis and I was yet again plunged into a loss on my initial investment. Gutted. Again I stuck with it and watched as my investment got back into the black and showed a paper profit.
Eventually I cashed in the ISA, and put the money into a savings account. That was in 2012. I cashed it in and got back £5300. So I made £1300 on a £4000 investment.
But that was after nearly 11 years... I remember doing some sums and it worked out that if I'd put the money in an ordinary account and was paid just over 2% interest, I'd have made more than what I did in the Stocks and Shares ISA. I'd had a decent bank account alongside this just before the banking crisis and it was paying 5%, so I've majorly lost out investing in stocks and shares.
Something that would make me wary now about re-investing in shares right now is that the FTSE is currently at a record high I think. So someone would be investing right at the top of the market, and there is more than a bit of uncertainty in the world at the moment with the situation in the US, not to mention the UK/Eu divorce to make me think there could be a decent sized fall not a million miles away.
posted on 16/1/17
comment by Beckham's Barnet (U13709)
posted 25 seconds ago
comment by Admin1 (U1)
posted 12 minutes ago
Fair play to you doing the video. The reality is that It's not quite as straightforward as that.
http://stockmarketalmanac.co.uk/wp-content/uploads/2014/01/FTSE-100-inflation-adjusted-1984-2013.png
You must also adjust for inflation.
Please also read Nassim Nicholas Taleb's black swan and also fooled by randomness, to appreciate the fallacy of back-fitting performance, then saying "if i had only done X or Y then look how well i would have done".
That being said, you'd be better gambling £15 a month in the stock-market than at the bookmakers.
----------------------------------------------------------------------
Thanks for the feedback. Much appreciated. Of course, there are risks, but the idea is not to 'play the game' as such and look for a business that's going to blow up, but instead bet on the horse that's already winning and wait patiently. When you think about the amount of money we spend on football, whether it be season tickets or accumulators, we can literally afford to throw this money away. If we invested the same in the stock market it would be very unlikely that you would lose it all.
----------------------------------------------------------------------
Patience is probably the thing most 'gamblers' have the least of though unfortunately.
I've noticed it when people try those £10 to £1000 betting plans that follow other peoples tips (terrible idea anyway), the idea being to start very small and each bet place the winnings on another safe choice, building up the kitty.
People don't even have the patience for those, and end up adding in their own tips to boost the profits, usually resulting in a loss.
posted on 16/1/17
The ftse100 is also an interesting one, as 2-3 companies per year drop out. So unless you are diversified with 40+ companies, there is a risk, you pick one of the imploding dogs. If you are diversified by more than 5-6 companies then you probably haven't researched each one enough.
Case in point:
My brother much against my advice invested in "yell.com" when it was ftse 100. Invested in at 400p and sold out at around 10p. That made up about 1/5 of his portfolio
posted on 16/1/17
comment by RenegadeOF (U9457)
posted 15 minutes ago
I did a thing called Virtual trader which is based on the real market at uni for an assignment, funnily enough most folk made a lot of virtual cash by just doing a bit of research. Saving my cash these days though as I do see it as gambling.
United I wouldn't invest in just now. Not sure how Brexit will impact getting footballers over here. Could go bad. And if the players go elsewhere so will the cash. Never mind the lack of success for Utd, longer it goes the dimmer view the market will take for things like advertising. Then add in growing Chinese game, I'd potentially go short on Utd if anything
----------------------------------------------------------------------
I think I've heard of virtual trader but not paid much attention to anything technological when it comes to the stock market thus far as like yourself, I always saw it as gambling. For now I just want to get a firm grasp on the basics so that I can do the minimum and put something aside every month that i'd normally throw away.
posted on 16/1/17
comment by RenegadeOF (U9457)
posted 18 minutes ago
I did a thing called Virtual trader which is based on the real market at uni for an assignment, funnily enough most folk made a lot of virtual cash by just doing a bit of research. Saving my cash these days though as I do see it as gambling.
United I wouldn't invest in just now. Not sure how Brexit will impact getting footballers over here. Could go bad. And if the players go elsewhere so will the cash. Never mind the lack of success for Utd, longer it goes the dimmer view the market will take for things like advertising. Then add in growing Chinese game, I'd potentially go short on Utd if anything
----------------------------------------------------------------------
Oh, and thanks for the tip on United, I'll wait I think. Didn't feel that attractive to me in the first place, other than to say I own a piece of the club.
posted on 16/1/17
comment by Bunteh - Phil Jones' face (U10372)
posted 19 minutes ago
One of my mentors who invests regularly in the stock market and has a PHD in finance did some research and found that if you invest just £15 a month into the stock market over the period of 10 years you stand to gain over £87k. Whilst investing over 20 Years = £300k+
----------------------------
I'd like to see the research here. What stocks is he investing in to get such a magnificent return?
Has he just gotten lucky and invested in Twitter etc. at the right time?
----------------------------------------------------------------------
Hey, thanks for your question. So what he did was something called a future value of annuity calculation. It's like something you can do relatively quickly based on a hypothesis. he's bough a meal from an airport and he wondered what would happen if he invested that money he spent on the meal in the stock market over a period of time so he did a calculation based on the historical performance of the stock market over any 10 year period in history and every time he made a profit.
It's not based on his own dealings as far as I know but I don't know how much he's worth, just that he's a very successful businessman and a finance PHD,
posted on 16/1/17
he bought*
posted on 16/1/17
comment by Mike (U1170)
posted 22 minutes ago
I would love to know what to invest in for the next decade, to return £85k from £1.8k.
Does your mentor give tips?
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He said (based on the historical performance of the stock market), as long as you have a well-diversified portfolio you stand to gain that much. I would advise going for businesses that are already winning and unlikely to fold easily within a 10 year period. eBay stocks are worth $30 right now.
posted on 16/1/17
comment by Mike (U1170)
posted 18 minutes ago
Also, hats off for doing the video and sharing
I hope you make a big success of it, good luck
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Thanks, bud. Much appreciated.
posted on 16/1/17
That's just my own opinion on United shares.
But the markets tend to move on opinions anyway. So if that comes to my mind straight away expect a lot more to as well.
posted on 16/1/17
comment by Serge Muhmenthaler (U15867)
posted 17 minutes ago
I invested £4000 in a stocks and shares ISA (obviously not quite the same as directly investing in the stock market) in June 2001. Wasn't entirely clued up, but saw that the potential there was in theory far greater than just leaving the money in a bank account.
However a few months later I was already £1200 down, due in no small part to a significant event happening across the pond and subsequent events over the next couple of years led to me being out of pocket on paper.
The stock market eventually got back on an even keel, and I was back in the black, but it had taken a few years. I was wondering whether to sell up for a small profit or continue an look for a greater return. I stuck with it.
Then there was the banking crisis and I was yet again plunged into a loss on my initial investment. Gutted. Again I stuck with it and watched as my investment got back into the black and showed a paper profit.
Eventually I cashed in the ISA, and put the money into a savings account. That was in 2012. I cashed it in and got back £5300. So I made £1300 on a £4000 investment.
But that was after nearly 11 years... I remember doing some sums and it worked out that if I'd put the money in an ordinary account and was paid just over 2% interest, I'd have made more than what I did in the Stocks and Shares ISA. I'd had a decent bank account alongside this just before the banking crisis and it was paying 5%, so I've majorly lost out investing in stocks and shares.
Something that would make me wary now about re-investing in shares right now is that the FTSE is currently at a record high I think. So someone would be investing right at the top of the market, and there is more than a bit of uncertainty in the world at the moment with the situation in the US, not to mention the UK/Eu divorce to make me think there could be a decent sized fall not a million miles away.
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I learned a lot from this comment. Thank you for sharing your experience. I'll definitely have to bear this in mind but I really found it admirable that you didn't panic through all that and help on to your money. The important thing I will to take away from your story is that you went through all that (including a financial crisis) and still made a profit. You didn't lose all of it because you held on and waited for the dips to even out. I'm not saying it could have gone worse but that is very encouraging.
posted on 16/1/17
comment by Mike (U1170)
posted 19 minutes ago
comment by Beckham's Barnet (U13709)
posted 25 seconds ago
comment by Admin1 (U1)
posted 12 minutes ago
Fair play to you doing the video. The reality is that It's not quite as straightforward as that.
http://stockmarketalmanac.co.uk/wp-content/uploads/2014/01/FTSE-100-inflation-adjusted-1984-2013.png
You must also adjust for inflation.
Please also read Nassim Nicholas Taleb's black swan and also fooled by randomness, to appreciate the fallacy of back-fitting performance, then saying "if i had only done X or Y then look how well i would have done".
That being said, you'd be better gambling £15 a month in the stock-market than at the bookmakers.
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Thanks for the feedback. Much appreciated. Of course, there are risks, but the idea is not to 'play the game' as such and look for a business that's going to blow up, but instead bet on the horse that's already winning and wait patiently. When you think about the amount of money we spend on football, whether it be season tickets or accumulators, we can literally afford to throw this money away. If we invested the same in the stock market it would be very unlikely that you would lose it all.
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Patience is probably the thing most 'gamblers' have the least of though unfortunately.
I've noticed it when people try those £10 to £1000 betting plans that follow other peoples tips (terrible idea anyway), the idea being to start very small and each bet place the winnings on another safe choice, building up the kitty.
People don't even have the patience for those, and end up adding in their own tips to boost the profits, usually resulting in a loss.
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Haha well, I guess there's always someone looking for a quick way to get rich. I got sucked into it for a bit, but now I've got the extra cash, I would be much more open to the patient approach. I'll save the panic decisions for my fantasy football team.
posted on 16/1/17
comment by RenegadeOF (U9457)
posted 3 minutes ago
That's just my own opinion on United shares.
But the markets tend to move on opinions anyway. So if that comes to my mind straight away expect a lot more to as well.
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Fair enough. I think you made a valid point but I'll obviously have to do my own research too and make up my own mind.
posted on 16/1/17
comment by Admin1 (U1)
posted 26 minutes ago
The ftse100 is also an interesting one, as 2-3 companies per year drop out. So unless you are diversified with 40+ companies, there is a risk, you pick one of the imploding dogs. If you are diversified by more than 5-6 companies then you probably haven't researched each one enough.
Case in point:
My brother much against my advice invested in "yell.com" when it was ftse 100. Invested in at 400p and sold out at around 10p. That made up about 1/5 of his portfolio
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Ohhh I see! Yes, I think the way to play it is to keep a wide portfolio. I wouldn't put all my eggs in one basket. Thanks for sharing that tip though. I didn't know about the 2-3 ftse 100 companies dropping out every year. I'm going to spend a good few months digging into this before I invest anything. I'm only planning to invest what I can afford to lose.
posted on 16/1/17
I started investing in shares in 1997. I put 6000 in a tracker fund - tracking the FTSE100. Today it is worth £15500. However, it went down at one stage to about £3000 after the twin towers. It recovered but then went down to about £5000 in 2008. Remember you never lose money if you don't sell. But you have to be able to afford not to sell. I always had other money invested in national savings, premium bonds and cash ISA's so I didnt't have to sell As you can see , over the long term I have made a substantial profit. I have more money now invested in some equity funds. These are more expensive to run than tracker funds but the same principles apply always have some safe forms of savings to fall back on when stock markets are struggling. Funds are better than individual shares cos the risks are spread. I am showing a profit of 22k after investing in funds over the last 10 years. However the only single firm I hold is BT and I am losing £1200. I only bought these when I had a cash ISA maturing and I used the money to invest in BT just before they got the champions league. Initially they went up but now I am losing. I won't lose unless I sell. I will wait and hopefully they will rise over the next couple of years. Fortunately I am not in a position where I need to sell. I will never buy a single company again. Hope this helps.
posted on 16/1/17
comment by Beckham's Barnet (U13709)
posted 40 minutes ago
comment by Serge Muhmenthaler (U15867)
posted 17 minutes ago
I invested £4000 in a stocks and shares ISA (obviously not quite the same as directly investing in the stock market) in June 2001. Wasn't entirely clued up, but saw that the potential there was in theory far greater than just leaving the money in a bank account.
However a few months later I was already £1200 down, due in no small part to a significant event happening across the pond and subsequent events over the next couple of years led to me being out of pocket on paper.
The stock market eventually got back on an even keel, and I was back in the black, but it had taken a few years. I was wondering whether to sell up for a small profit or continue an look for a greater return. I stuck with it.
Then there was the banking crisis and I was yet again plunged into a loss on my initial investment. Gutted. Again I stuck with it and watched as my investment got back into the black and showed a paper profit.
Eventually I cashed in the ISA, and put the money into a savings account. That was in 2012. I cashed it in and got back £5300. So I made £1300 on a £4000 investment.
But that was after nearly 11 years... I remember doing some sums and it worked out that if I'd put the money in an ordinary account and was paid just over 2% interest, I'd have made more than what I did in the Stocks and Shares ISA. I'd had a decent bank account alongside this just before the banking crisis and it was paying 5%, so I've majorly lost out investing in stocks and shares.
Something that would make me wary now about re-investing in shares right now is that the FTSE is currently at a record high I think. So someone would be investing right at the top of the market, and there is more than a bit of uncertainty in the world at the moment with the situation in the US, not to mention the UK/Eu divorce to make me think there could be a decent sized fall not a million miles away.
----------------------------------------------------------------------
I learned a lot from this comment. Thank you for sharing your experience. I'll definitely have to bear this in mind but I really found it admirable that you didn't panic through all that and help on to your money. The important thing I will to take away from your story is that you went through all that (including a financial crisis) and still made a profit. You didn't lose all of it because you held on and waited for the dips to even out. I'm not saying it could have gone worse but that is very encouraging.
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I don't think that was the lesson to be taken from this tale. In general in a standard savings account the funds invested in the ISA would have been bettered through standard interest over that period of time.
It is slightly different investing in an ISA as it's a FTSE100 tracker generally, plus some catastrophic global events over that period had a massive effect on the market values - 9/11 in 2001 and the market crash in 2007. But still the lesson to be learnt here is that even over the longer term safer investments can still come out on top.
The crisis in 2007 may still be eclipsed by the Brexit thing over the next few years, especially as May is about to give a speech on it tomorrow and going for a hard brexit, no single market, no customs union etc. I wouldn't be surprised to see the markets react to that tomorrow and the pound is continuing to plummet.
posted on 16/1/17
I'm an accountant (full time) and a forex and commodities trader on the side.
These are highly risky markets and certainly wouldn't recommend.
But, I make a decent second income following a strict but simples rules based strategy I developed. Patience is absolutely the key in these things. It helps that I don't need to make an income from capital markets. Can't imagine how stressful that must be.
I do it for fun and cos I have a general interest in economics. I think of it as a game, a risky game but using money I can afford to lose.
posted on 16/1/17
comment by (U1465)
posted 22 minutes ago
I started investing in shares in 1997. I put 6000 in a tracker fund - tracking the FTSE100. Today it is worth £15500. However, it went down at one stage to about £3000 after the twin towers. It recovered but then went down to about £5000 in 2008. Remember you never lose money if you don't sell. But you have to be able to afford not to sell. I always had other money invested in national savings, premium bonds and cash ISA's so I didnt't have to sell As you can see , over the long term I have made a substantial profit. I have more money now invested in some equity funds. These are more expensive to run than tracker funds but the same principles apply always have some safe forms of savings to fall back on when stock markets are struggling. Funds are better than individual shares cos the risks are spread. I am showing a profit of 22k after investing in funds over the last 10 years. However the only single firm I hold is BT and I am losing £1200. I only bought these when I had a cash ISA maturing and I used the money to invest in BT just before they got the champions league. Initially they went up but now I am losing. I won't lose unless I sell. I will wait and hopefully they will rise over the next couple of years. Fortunately I am not in a position where I need to sell. I will never buy a single company again. Hope this helps.
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Thanks for this! This is really interesting. I haven't heard anything about funds yet. I'm going to look into that. As for BT, definitely hold onto those shares. Don't they pretty much own a monopoly on all of the underground cabling?
I think with companies like that, I'm not going to be selling based on temporary losses, even if they do seem big at the time.
Thanks for sharing this. I've got a lot of research to do still it seems
posted on 16/1/17
I'm happy investing in property. I think it's not done to bad for me.
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