Over 90 per cent of non market punters who try to play the markets end up losing what they had. Or worse. What they didn’t have by leveraging . You might as well bet on the footy
S | Size | yes | Market cap is under £30m | |||||||||||
C | Chart | No/yes | Is RSI under above 30 rising to 50 | |||||||||||
H | Hot | Yes | Is it a growth area or hot commodity | |||||||||||
E | Earnings forecast | yes | are they or will they be profitable soon? what is the growth forecast over 5 years | |||||||||||
D | Directors | Yes | do they hold good share stakes | |||||||||||
U | Unique | Yes | ||||||||||||
L | Liquid assets | Yes | Do they have funds to take the company forward? Is there a chance of a dilution of shares | |||||||||||
E | Easy to understand | yes | ||||||||||||
S | Scalable | yes | Can they generate potential uplift value to 10 times - | |||||||||||
I'd love to pick a good mining stock. My friend paid off his mortgage with EUA , if you pick the right one you are laughing (easier said than done). I've got 2 mining stocks in my portfolio ATM, KAT and SAVGood policy, Ricky, in-depth research is key when investing. I try to maintain a holding in a mix of niche, mainstream and mega companies for a bit of variation. Had a lot of fun (and good profit) with mining outfits a few years back, the divis were a bonus.
I'm not one for picking individual stocks. I tend to go for passive tracker funds. The advantages are that it's cheaper (no trading fees, lower management fees) and it provides diversification.
Not nearly as much fun though!
As it happens I studied portfolio theory at university (or Poly as it was). I found it fascinating, especially the mathematical side of it. That said, what it boils down to is having a pyramid of investments. The lower (bigger) end of the pyramid will be your low risk, low return investments. As you go up the pyramid the risk increases along with the return, and the amount invested decreases. The top (smallest) bit will be the high risk, high return investments. Obviously, when you get to the top of the pyramid you only invest what you can afford to lose, which is why you only put a small amount in. It's the low risk low return investments that give you the freedom to be a bit more risky in other areas because they "guarantee" you a positive return.
It sounds like you've got the bottom of your pyramid covered, but not the rest!
I've got some small cap and emerging fund trackers as well for higher risk/growth but ultimately when it comes to individual investments I feel there's an information dissymmetry in which I'm always going to be at a disadvantage.
And for my big rewards, I'm still waiting for my premium bonds to win big!
I'd love to pick a good mining stock. My friend paid off his mortgage with EUA , if you pick the right one you are laughing (easier said than done). I've got 2 mining stocks in my portfolio ATM, KAT and SAV
Ive changed from my original approach of stock picking to an actively managed fund at medium risk. Youre always going to be at a disadvantage trying to play the market and I dont want my fingers burned!
Ah, but playing the market can be great fun!
Had Xstrata for a few years, continually buying low / re-investing / selling high to good effect, then moved into Glencore for a couple of years after they took full ownership of Xstrata. I view investments as all potentially long term. Unlike betting on dogs / horses etc which is instant win or loss, there's no loss unless a desperate need to sell or a company goes belly-up... shares are always in play.
We won’t fall into your criteria of smallI'm losing a little on most of my portfolio (nothing anymore than 20% down and I still see long term gain in most of them) but I have 2 that have performed wonderfully and have eaten up those losses and put my portfolio 26% up as at COB friday. Some will perform, some won't. I invested small amounts in trends by just reading about companies and not digging down into the finances a few years back and lost a little. I think now I have picked up some key pointers on how to do proper due diligence. I use the SCHEDULES matrix that Justin Waite uses and don't invest unless it ticks 7/8 out of 9.
Time will tell but I don't do very well with my small stakes on the footy so I'll carry on with this for now.
S Size yes Market cap is under £30m C Chart No/yes Is RSI under above 30 rising to 50 H Hot Yes Is it a growth area or hot commodity E Earnings forecast yes are they or will they be profitable soon? what is the growth forecast over 5 years D Directors Yes do they hold good share stakes U Unique Yes L Liquid assets Yes Do they have funds to take the company forward? Is there a chance of a dilution of shares E Easy to understand yes S Scalable yes Can they generate potential uplift value to 10 times -
Thank you, I have just done a quick search on ICE and BAKKT and it is taking me down a rabbit hole so need to look at it all further and understand it. I am very interested in crypto but will take something special to get me involved further as my exposure there is already quite large!We won’t fall into your criteria of small
You might want to consider “ice” shares. You won’t “get rich quick” but very steady double digit performance.
I am biased as it’s my employer and I receive stock bonuses,but it also means I will nderstand rhe business a little and it hard to ignore the consistent year on year performance is
the market still doesn’t understand our business (see the share price fell when it was leaked we were speaking to eBay as investors didn’t understand the similarities).
We will transform Ellie Mae and the upside there is enormous.
More and more Regulation forces firms to use CCP’s and therefore in turn to use exchanges
Practically every year we outdo analysts forecasts (usd $7 when launched 20 years ago, now $112)
Ps- I’ve also owns BAKKT , and I know you are interested in cypto-
Bakkt is a small part of “ice” and i wouldn’t invest/not invest because of Bakkt , I only mentioned it because of your interest in crypto. It’s for trading futures, it’s target audience is investment banks and large institutional investors who are weary of crypto/ can not trade it as it is unregulated where as BAKKT is “properly regulated “.Thank you, I have just done a quick search on ICE and BAKKT and it is taking me down a rabbit hole so need to look at it all further and understand it. I am very interested in crypto but will take something special to get me involved further as my exposure there is already quite large!
Very interesting, I have a week off between Xmas and New year so I have got some harcore research to be doing! I've added this too a list I already have with some left field EV plays, a couple of green energy plays and a diamond miner as I've been advised by someone in the industry that diamonds have hit a bottomBakkt is a small part of “ice” and i wouldn’t invest/not invest because of Bakkt , I only mentioned it because of your interest in crypto. It’s for trading futures, it’s target audience is investment banks and large institutional investors who are weary of crypto/ can not trade it as it is unregulated where as BAKKT is “properly regulated “.
Ps a side shoot of bakkt is to make a consumer market in reward points where you can for instance buy/sell air miles loyalty points etc. In the US that could be huge as apparently household have far far more loyalty cards than in the uk ( I can’t recall the number).
Two examples of forward looking ideas where we are years ahead of the competition
Very interesting, I have a week off between Xmas and New year so I have got some harcore research to be doing! I've added this too a list I already have with some left field EV plays, a couple of green energy plays and a diamond miner as I've been advised by someone in the industry that diamonds have hit a bottom