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?
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?
we all start somewhere.
