7,450 reputation
2839
bio website
location Sydney, Australia
age
visits member for 2 years, 8 months
seen 5 hours ago

6h
reviewed Leave Closed If the U.S. defaults on its debt, what will happen to my bank money?
7h
answered How to define a 'market price' for trading platforms?
7h
comment What kind of symbol can be shorted?
You should ask your broker for education material on the matter. Not all stocks can be shorted. You should also check with your broker for a list of their shortable stocks.
21h
comment Setting and measuring risk profile target for retirement account
@Ironluca - Secondly I would never buy into a falling market. As a trend follower I would only buy into a rising market. I would actually get fully out of a falling market similar to what we had in 2007/08. What I would do in a falling market is to take on short positions, which I have started doing this year with my smaller geared account. Also regarding setting stop prices, the larger your stop the smaller your position will be and the longer you will be in a position in general. Larger stops would generally be used with longer-term investing, whilst smaller stops with shorter-term trading.
21h
comment Setting and measuring risk profile target for retirement account
@Ironluca - Firstly with an account of $100K I would not open one position of $100K and risk 1% on it. I meant that with an account of $100K I would risk 1% of that $100K ($1000) on any one position. I would use Position Sizing to work out how many share to buy in each position. Simply, if my risk on any one position is $1000 I would then set a stop price, say 10% on a price of $10, my stop price would be set at $9. We can then determine the shares to buy by dividing the risk $1000 by the stop $1 to get 1000 shares to buy.
1d
comment Setting and measuring risk profile target for retirement account
@Ironluca - I don't swing trade. I invest for the medium-long term (trend trade). When I get into a position I place a trailing stop and stay in it until the price starts dropping. If the price keeps moving up for 10 years I will stay in it for 10 years. But as soon as it drops to my trailing stop loss point I am out. I know my exact maximum loss on each position but let my profits run. I run a smaller account on margin with a tighter stop but also with profit targets. I don't day trade and spend no more than 5 hours/week. I am 45 and semi-retired and live of my property and share investments.
1d
comment Setting and measuring risk profile target for retirement account
@Ironluca - have you thought why so many people retire poor, maybe because they follow "...some financial opinions..." I know someone who is 69yo who has made a return of 7% in the last 2 months. They made 26% return last year. They did not do this by putting 70-80% into bonds. I personally made 19% last year and am up about 10% so far this year. I also have another smaller account which is up 177% over the last 2 years. The only time I would consider parking my money into bonds is when I am out of the market as it is freefalling 40%, 50% or more. Risk management is the key to success!
1d
comment How correlated are apartment and house prices in the same area?
@Janey - what city are you in? I am in Sydney and both house and unit prices are still rising. I am also an investor and I prefer house to units. I also know many younger singles and couples and also many older couples that prefer to buy and live in a unit rather than a house. There are also many families that prefer to rent in houses rather than in units. That is why I usually aim for 3 bedroom houses to invest in.
1d
answered What can we learn from when the trading volume is much higher/lower than average?
Sep
13
awarded  Notable Question
Sep
12
reviewed Approve suggested edit on Does Singapore have strict policies against foreigners buying real estate?
Sep
12
reviewed Approve suggested edit on How much cash on hand should one have?
Sep
11
comment Rental Property: What is considered decent cash flow? (with example)
@littleadv - the OP asks "Is that considered a poor investment?" To consider if investment is good or bad one should consider the total return (both yield and potential capital return). It seems like you haven't read the question properly. The OP has clearly stated a 20% downpayment and a Principal & Interest expense of $368. He comes up with the estimate monthly expense of $835 using this calculation: $552 - $117 + $400 = $835. But of course you think the image is just a random crop of the zillow page which the OP didn't intended to be a meaningful part of the question.
Sep
10
comment Rental Property: What is considered decent cash flow? (with example)
In the image provided it has downpayment percentage 20%. Also expenses of $835 would be quite high if it didn't also include mortgage payments.
Sep
10
comment Rental Property: What is considered decent cash flow? (with example)
Littleadv - downpayment percentage in shown in the image provided. You compared rental returns with interest from a bank account - but these are not comparable as you cannot get capital gains from a bank account. I have simply mentioned that potential capital gains is something that should also be considered in this type of investment.
Sep
10
answered Rental Property: What is considered decent cash flow? (with example)
Sep
10
reviewed No Action Needed Saving for brother's children
Sep
9
comment How can I use the equity out of my current property to purchase another one?
@fizzix - with interest rates at record lows and the next move in interest rates being upwards, your risk is all on the upside - meaning if rates start rising - property prices may start falling. This can become quite dangerous if you have bought at the highs with a very high LVR and property prices fall below your purchase price and below the mortgage amount - meaning your LVR is now over 100%. If something happens to you and you have no savings put aside, the house of cards may collapse around you and you may be left with nothing but debt to still pay off.
Sep
9
comment How can I use the equity out of my current property to purchase another one?
@fizzix - your current property is an investment in which you are out of pocket $30/week, and your new one will be to live in and then lease a room out to help with your expenses. You may be ok income wise (but that could depend on your other expenses and whether or not you are a disciplined saver or not). However, your current equity will be your problem. Even if you paid LMI and got the new loan at an LVR of 95% you would still need to increase your current equity or savings by about $10K to cover closing costs. And you are taking extra risk buying now with property prices at their highs.
Sep
9
comment Parking money for a few months or a year
I agree totally with JohnFx. You pay taxes on the money you make for working, why would paying tax on investment gains be so different. If you don't want to pay any taxes then don't earn any income!