Technical Investing advice?
- Thread starter wikiwild
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Wikiwild
Your question is as generic as "I want to buy a vehicle. What should I get?"
What is your goal in trading with the money you have? What is your timeframe for investing? (short term/long term) What is your risk tolerance?
Until you can provide these basic details, you won't get specific suggestions.
From the funny take on things. Being on this board likely means that you are trading your money for the time of a SP as an investment into your own pleasure. ;-)
Your question is as generic as "I want to buy a vehicle. What should I get?"
What is your goal in trading with the money you have? What is your timeframe for investing? (short term/long term) What is your risk tolerance?
Until you can provide these basic details, you won't get specific suggestions.
From the funny take on things. Being on this board likely means that you are trading your money for the time of a SP as an investment into your own pleasure. ;-)
hey thanks for the reply, you're right I should have been more specific. I know its pretty cliche, but I want to build on that money over the mid-term. (i.e. have some pocket money to spend a year or two from now)
I have RRSP's and stuff that should be ok for me over the long term and retirement, but I'm 25+ years away from that.
My risk tolerance is probably medium, because I suppose really low risk stuff is useless unless long term, and even moreso with the amount of money I have, but at the same time I don't want something as high risk as going to the casino.
I'm thinking of stuff like resources, and companies who are exploring/drilling and would make jumps when they start production, although that may be overly naive.
As you can tell, I'm not very experienced in this area, a lot of guys here are well-to-do so I was hoping to get some pointers.
And ya, i want to finance the hobby too
*ducks and prepares for flames*
I have RRSP's and stuff that should be ok for me over the long term and retirement, but I'm 25+ years away from that.
My risk tolerance is probably medium, because I suppose really low risk stuff is useless unless long term, and even moreso with the amount of money I have, but at the same time I don't want something as high risk as going to the casino.
I'm thinking of stuff like resources, and companies who are exploring/drilling and would make jumps when they start production, although that may be overly naive.
As you can tell, I'm not very experienced in this area, a lot of guys here are well-to-do so I was hoping to get some pointers.
And ya, i want to finance the hobby too
*ducks and prepares for flames*
Your risk capital is too small
First off, you don't have enough risk capital to play the technical trading game. To play forex (foreign currency) you need about 10k U.S. funds. Each 1k deposit will allow you to control one lot of currency say, swiss francs, UK pounds (aka cable), japan yen, euro, and etc...
From your post you sound like a fundamental investor (ie you want to play drilling and resource stocks). The technical game is all about price movement and the chart patterns. More emphasis is on your money management strategies. Much of the books flooded in the market are about indicators. All in all, you need put a lot of consideration into the design of your trading system with a lot of thought placed on entry and exit points in your system.
First off, you don't have enough risk capital to play the technical trading game. To play forex (foreign currency) you need about 10k U.S. funds. Each 1k deposit will allow you to control one lot of currency say, swiss francs, UK pounds (aka cable), japan yen, euro, and etc...
From your post you sound like a fundamental investor (ie you want to play drilling and resource stocks). The technical game is all about price movement and the chart patterns. More emphasis is on your money management strategies. Much of the books flooded in the market are about indicators. All in all, you need put a lot of consideration into the design of your trading system with a lot of thought placed on entry and exit points in your system.
m91us said:
It is entirely possible to trade the forex maket with 2500 dollars. Although it would have to be US dollars and trading in 1K lots. Currencies are traded in pairs so it is helpful to state the whole pair when mentioning them. I suspect you actually meant USD/CHF (swiss franc), GBP/USD (pound), USD/JPY (yen) and EUR/USD. These 4 currency pairs are amoung the 6 majors the other 2 being the USD/CAD (canadian dollar) USD/AUD "auzzie dollar".
I have been using a trading strategy that is on the medium to long term basis. It takes advantage of a couple of unique characteristics of the Forex market. 1 being leverage of up to 400:1 and getting daily interest on the leveraged amount of money. The other charateristic being that the major currency pairs have pretty tight correlations. Some pairs are positive correlations (EUR/USD and GBP/USD) and others negative correations (USD/CHF and USD/JPY). The correlation are relative to the EUR/USD.
For anyone that will ask, I am still in the market after surviving the market meltdown of the end of February and beginning of March (worst in the Forex market in over 10 years).
If anyone wants more information on the trading strategy that I use, feel free to PM me.
Cheers
I am not sure if SHrek71 understands what the OP is asking here. The question the OP asked is specific enough - which is how he can get started with technical investing. Like m91us said, technical trading is all about chart patterns and indicators (just to mention a few). I don't see Shrek71 referring to any of these factors but instead referring to what works for him - which is not technical investing.
Anyone who trades purely on a technical basis obviously has a higher risk tolerance and shorter time frame (whether be the next wk, month etc.). While it can be fun when it works out, bear in mind that no technical trader is on the world's top billionaire list.
Anyone who trades purely on a technical basis obviously has a higher risk tolerance and shorter time frame (whether be the next wk, month etc.). While it can be fun when it works out, bear in mind that no technical trader is on the world's top billionaire list.
Technical Investing?
Don't do it!!
While this is my opinion, the literature suggests technical investing is not founded in sound portfolio management theory
Check out this site
http://www.shareowner.com/index.html
you can invest your $2,500 for the long haul in a diversified way and sleep soundly at night.
Invest it as per what a chart tells you & its 50 /50 you will be correct (probable more like 70/30 against-however thats just my opinion)
Don't do it!!
While this is my opinion, the literature suggests technical investing is not founded in sound portfolio management theory
Check out this site
http://www.shareowner.com/index.html
you can invest your $2,500 for the long haul in a diversified way and sleep soundly at night.
Invest it as per what a chart tells you & its 50 /50 you will be correct (probable more like 70/30 against-however thats just my opinion)
You would be better off taking the $2,500 and paying down on debt if you have any. If you have no debt (good for you), choose another investment. I agree with M9 - much more capital is required to make any type of real return.
For quick "active investing cash" based on a 3 year time-frame of $2500.00, go buy 100 Disney DVDs, wait 3 years, then sell them on Ebay. Bang $7500.00. Gee, someone should pay me to be financially educated. 
You could always send the $2500.00 to me and be square, of course.
Have a nice day!
Gyaos Baltar.
P.S.: Not all debt is bad.
You could always send the $2500.00 to me and be square, of course.
Have a nice day!
Gyaos Baltar.
P.S.: Not all debt is bad.
Gyaos said:
I say take the $2,500 and bet black at the casino - who fool around with ebay! (obviously said in tongue and cheek)
I would argue any debt other than mortgage debt would be "bad" debt.
scrooge said:
George Soros is a technical trader. His net worth 8.5 billions according to Forbes. The link is below.
http://www.forbes.com/lists/2006/54/biz_06rich400_George-Soros_L9II.html
I'm curious about the net worth of his side-kick James Rogers who help run the Quantum Fund. I hear rumors Jim Rogers has sold his New York home and move to China.
m91us said:
Ok, I stand corrected. However, he is still an example of the very few who have made it using this skill.
On another note, I think it is unfair for any of us to tell what the OP should or should not do. Everyone has a different investment style (like Shrek71) and risk tolerance. Some gamble at the casino while some would not. Let's just stick to what the OP said.
HEre is another website for technical investing: www.timingthemarket.ca.
scrooge said:
Actually if he wants an education about technical trading he should start here.
https://www.mta.org/eweb/DynamicPage.aspx?Site=MTA&WebKey=022fbb0d-3893-4780-9fb9-bfae817eb831
