Can a part time investor do well?

[Dr Blues]

Hello everyone,

I'm 24 and my job is in no way related to trading/investing. I have recently become very interested in it however (spend all my free time reading about it).

My questions,

From your experience, do part timer's and professionals differ only in the amount of stock they follow, or are the professionals also much better at analysing stock (because they spend more time doing it)?

Is it feasible for a working man to spend his leisure time to research a few stocks in detail and do well?

If not, am I right in thinking that a longer term investment in property may be more sensible (the hours I can dedicate to researching that will put me significantly ahead of most of the competition, the general public)

Many thanks,

Peter

 

[malaguti]

Is it feasible for a working man to spend his leisure time to research a few stocks in detail and do well?

absolutely, a well chosen handful and you can spend as little or as much time as you like.

Property is a bit dodgy right now, central london is flatlining/coming down which will inevitably shift to west/outer areas/suburbs etc. So you could well think about waiting for the right investment. Thats just an informed opinion of course..about property.

 

[Dr Blues]

absolutely, a well chosen handful and you can spend as little or as much time as you like.

Property is a bit dodgy right now, central london is flatlining/coming down which will inevitably shift to west/outer areas/suburbs etc. So you could well think about waiting for the right investment. Thats just an informed opinion of course..about property.

Thank you for your reply. I have been looking at flats in commuter towns, particularly near train stations that will be added to the new crossrail. Maidenhead for example. From my limited research at this stage, it seems like a very sensible investment.

As for stocks, I have been reading Peter Lynch's 'One up on Wall Street' and in no way claim to be an expert, but the theory of his approach seems best fit to a part timer such as myself.

 

[tow]

This forum has so many good advice on short term trading and there aren't a lot of long term trading advice (holding period greater than 1 year) here. I do both and I find long term is much easier to make money with less stress. Although you might not make as much with buy and hold strategy (5% to 10% per year), there's a lot of mentors out there who have successfully invest for decades (Buffet, Lynch, Miller, etc). I personally use Greenblatt's investing style (spending about 1 or 2 days per month researching for new stocks or rebalance my portfolio). https://www.magicformulainvesting.com/

I also use stock ratings and fundamental analysis here, http://american-ticker.com/finance/ratio/XOM/

If you don't have time to look at your stocks everyday, try long term investing.

Recently, I've started to trade short term and so far, it is really difficult. But the people on this forum is really helpful.

Hello everyone,

I'm 24 and my job is in no way related to trading/investing. I have recently become very interested in it however (spend all my free time reading about it).

My questions,

From your experience, do part timer's and professionals differ only in the amount of stock they follow, or are the professionals also much better at analysing stock (because they spend more time doing it)?

Is it feasible for a working man to spend his leisure time to research a few stocks in detail and do well?

If not, am I right in thinking that a longer term investment in property may be more sensible (the hours I can dedicate to researching that will put me significantly ahead of most of the competition, the general public)

Many thanks,

Peter

 

[louistrader]

Hello everyone,

I'm 24 and my job is in no way related to trading/investing. I have recently become very interested in it however (spend all my free time reading about it).

My questions,

From your experience, do part timer's and professionals differ only in the amount of stock they follow, or are the professionals also much better at analysing stock (because they spend more time doing it)?

Is it feasible for a working man to spend his leisure time to research a few stocks in detail and do well?

If not, am I right in thinking that a longer term investment in property may be more sensible (the hours I can dedicate to researching that will put me significantly ahead of most of the competition, the general public)

Many thanks,

Peter

As someone that is in similar shoes as yours: trading/investing education will consume a large part of your life for many years if you ever think that you're going to make it. Backtest and forward test everything ad nauseum, in simulation, before risking a penny.

In general you're better off following fewer securities and sticking to the more well known, liquid ones.

Although I cannot give you specific advice, real estate is generally only a good investment if it is dirt cheap and/or you have immediate rents coming in and/or you are going to start a business yourself. The cost to maintain a property just to sit on it are ususally not worth the risk or reward.

That is the best advice that I can give you. I hope it helps.

 

[Dr Blues]

As someone that is in similar shoes as yours: trading/investing education will consume a large part of your life for many years if you ever think that you're going to make it. Backtest and forward test everything ad nauseum, in simulation, before risking a penny.

In general you're better off following fewer securities and sticking to the more well known, liquid ones.

Although I cannot give you specific advice, real estate is generally only a good investment if it is dirt cheap and/or you have immediate rents coming in and/or you are going to start a business yourself. The cost to maintain a property just to sit on it are ususally not worth the risk or reward.

That is the best advice that I can give you. I hope it helps.

Thanks for your reply. I was looking to do an interest only buy to let somewhere with a proven record of regular tenants.