most sensible approach to trading

[olweiser]

I've just started dabbling with the idea of trading to add to another stream of residual income - If I've learned one thing so far its that there is an awful lot to learn and to start making any amount of consistant income its gonna take a time.

There are a lot of trading companies offering there services to invest in various shares, stocks and forex strategies. Normally, I like to learn everything myself but in this case I'm considering going down this route to start earning whilst I equip myself with the neccessary skills.

Has anyone used services of this kind, and is it a good idea? do they take too much in the way of service fees to make it worthwhile?

 

[Rhody Trader]

If you want "residual" income, that doesn't mean trading for yourself. Trading requires work on a fairly continuous basis to produce results (can't win if you don't trade and you can't trade effictively if you don't do the requisite work to develop the ideas). It's definitely not a sit back and let the profits roll in type of thing (maybe with the exception of a completely automated methodology). If you're not looking for something where you're an active participant, then you're better off having someone else manage your funds.

 

[olweiser]

If you want "residual" income, that doesn't mean trading for yourself. Trading requires work on a fairly continuous basis to produce results (can't win if you don't trade and you can't trade effictively if you don't do the requisite work to develop the ideas). It's definitely not a sit back and let the profits roll in type of thing (maybe with the exception of a completely automated methodology). If you're not looking for something where you're an active participant, then you're better off having someone else manage your funds.

Thanks for the your reply Rhody.

My definition of 'residual' is not a sit back and relax method. To me it means a little work, regularly to produce consistant returns - this I know is possible with the right knowledge. What I'm asking is are the companies that offer to invest my money worthwhile using whilst I train myself in with the neccessary skills?
If so, can anyone recommend any and give some examples of returns achieved?

 

[PokerBrat]

Your question is inconsistent with the title of your thread. You are asking for advice on where to invest your money, which is not trading. The two things are entirely separate. The fact that you are investing your money while you learn how to trade does not make it trading, it is still investing.

If you have a significant amount of capital you want to invest, you should speak to a Financial Advisor. I can't imagine that you are going to get very good financial advice on a forum.

If you only have a small amount then it wont make much difference where you put it, as a couple of % points here and there wont amount to much.

 

[Rhody Trader]

What I'm asking is are the companies that offer to invest my money worthwhile using whilst I train myself in with the neccessary skills?

The answer to the question of whether you should put your money to work elsewhere as you learn the trading basics (before putting any real money to work) is always going to be affirmative. It's always going to make sense to earn some return vs. just leaving your money sitting there.

As to whether you should put you money with someone else to trade for some period of time, I would say the answer is probably negative. Firstly, finding someone good is going to take time and effort probably best applied to developing your trading know-how. Second, if the timeframe for having that money with someone else isn't sufficiently long, you could actually find yourself caught in a natural drawdown period of that other manager. It's the same financial management principle as not having your money in the stock market if you're going to need it within a short period of time.

 

[olweiser]

forums! love em and hate em! ask a question, get protracted non anwers!

(by the way I do appreciate all and any replies)

Let me ask in another way:
Can anyone recommend any companies that will invest my money in this manner? (I'd rather go with recomendations)

Thanks.

 

[olweiser]

The answer to the question of whether you should put your money to work elsewhere as you learn the trading basics (before putting any real money to work) is always going to be affirmative. It's always going to make sense to earn some return vs. just leaving your money sitting there.

As to whether you should put you money with someone else to trade for some period of time, I would say the answer is probably negative. Firstly, finding someone good is going to take time and effort probably best applied to developing your trading know-how. Second, if the timeframe for having that money with someone else isn't sufficiently long, you could actually find yourself caught in a natural drawdown period of that other manager. It's the same financial management principle as not having your money in the stock market if you're going to need it within a short period of time.

thanks Rhody,
I shall take your advise and keep my cash where it is - doing nothing. this will spur me on to get involved sooner than later.

Can't remember who recomended "bets and the city' but thank you. Part way through it and its a very good read - helpful or not.

 

[BSD]

As to whether you should put you money with someone else to trade for some period of time, I would say the answer is probably negative. Firstly, finding someone good is going to take time and effort probably best applied to developing your trading know-how. Second, if the timeframe for having that money with someone else isn't sufficiently long, you could actually find yourself caught in a natural drawdown period of that other manager. It's the same financial management principle as not having your money in the stock market if you're going to need it within a short period of time.

Couldn't agree more with that.

A: It's not like there aren't any number of crooks in that business, see the current 50 billion Madoff Ponzi scheme.

B: Finding a good money manager / hedgefund is like finding a needle in a haystack and, as Rhody says, even they will have their drawdown periods.

C: If you're starting out you can achieve far higher rates of return with your lower assets and probably also higher endurance for risk than public money managers.

 

[FXSCALPER2]

I've just started dabbling with the idea of trading to add to another stream of residual income - If I've learned one thing so far its that there is an awful lot to learn and to start making any amount of consistant income its gonna take a time.

There are a lot of trading companies offering there services to invest in various shares, stocks and forex strategies. Normally, I like to learn everything myself but in this case I'm considering going down this route to start earning whilst I equip myself with the neccessary skills.

Has anyone used services of this kind, and is it a good idea? do they take too much in the way of service fees to make it worthwhile?

If you can find someone who can provide you with good signals, go for it. It doesn't matter how you make money trading. I know a couple but can't post here. PM me if you like.

 

[luckyd1976]

The answer to the question of whether you should put your money to work elsewhere as you learn the trading basics (before putting any real money to work) is always going to be affirmative. It's always going to make sense to earn some return vs. just leaving your money sitting there.

As to whether you should put you money with someone else to trade for some period of time, I would say the answer is probably negative. Firstly, finding someone good is going to take time and effort probably best applied to developing your trading know-how. Second, if the timeframe for having that money with someone else isn't sufficiently long, you could actually find yourself caught in a natural drawdown period of that other manager. It's the same financial management principle as not having your money in the stock market if you're going to need it within a short period of time.

Some very good advice.

Learn what type of investing best suits you. Then as you approach traders/funds you'll have a better idea as to the returns you should normally receive and if the risks are acceptable to you. This all goes back to knowing what you are looking at. If you dont take the time to understand alittle of the strategies, etc. The due diligence you receive might have as well came from Madoff lol

Once you have a better understanding of the market strategies and situations then you can decide for yourself if this is just a normal market drawdown phenomenon or if its a pattern for that particular trader/fund.

 

[ola4real]

can any body help me with fixed odd financial trading