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1

Let's take a look at a bit of modern portfolio theory and efficient market hypothesis. According to modern portfolio theory, there are individual assets that vary based on risk and return. From these, you can construct an optimal portfolio. It's the one that is on the efficient frontier, and is called "tangency portfolio" because it's the portfolio that is ...


0

Many good answers here already. Your best bet would be to read up on investing in index funds, JL Collin’s stock series is a great source on this. Simple, easy to understand and will save you a butt loaf of money in the long run. If you don’t feel like learning though there are many companies out there willing to take your money, analyze your risk tolerance ...


0

Yes, there are in the UK. They are called investment trusts (though they aren’t really trusts in the normal sense of the word — they are companies). Around 60 of the 350 companies in the FTSE-350 list of the biggest listed companies in the UK are investment trusts.


8

That thing is called a mutual fund. They are readily available, either as a mutual fund proper, which has rules for investing and withdrawing, or as an exchange-traded fund, which trades in real time just like a stock. - What you are specifying is an actively managed mutual fund, where a monkey throws poo at a wall to pick stocks at random ... and ...


2

Berkshire Hathaway does exactly what you want. Each share is $331,000, so you probably won't be investing in it... For us mere mortals, actively managed mutual funds and ETFs do the same thing, except they're funds managed by brokerage firms, not companies. Many firms offer them. Three popular ones are, alphabetically: Charles Schwab Fidelity Vanguard


1

When are you planning to retire? If you're 50, and your retirement age is closer to 70 than 65, and you aren't planning to die immediately after retiring, you have plenty of time for the wonder of compound interest to do its job. I would say your investment horizon is ~25 years. My recommendation is a portfolio of a cheap government bond fund and a ...


1

There are several options for you and I'm going to keep it generic. Put your nose to the books and acquire some degree of financial literacy so that you can understand the risks and rewards involved in various types of investments and be able to judge what might meet your needs as well as your risk tolerance. At the other extreme is to work with a ...


1

You might want to consider finding a local financial advisor who can better personalize your plan, as there are many other variables that need to be considered: How long do you plan to work before retiring? how much can you contribute to retirement now? What will your expenses be after retirement? Will you have any other income or will you rely solely on ...


0

What you're looking can be obtained in two manners. Firstly, prefer stocks that have a low value. For example, with 2 EUR, you can buy 2 stocks having value 1 EUR, but zero stocks having value 10 EUR. However, don't let this put too much bias to your portfolio; the most important thing is good diversification and whether that means you have 10 EUR laying ...


1

Consider a carry-trade. Borrow at 0% in Europe and invest at 2% in the U.S. Or sell the EUR/USD currency pair. The forex broker will take about 0.75% commission and pay about 1.25% interest. But that's 1.25% interest on the leveraged amount. The leveraging is like borrowing. One example of hedging the position would be to buy gold. Or hedge with a second ...


0

To simplify concepts, let's look at a single decision point in your strategy: You buy at $100, then sell at $105 because you're hoping the stock price will fall. Why? There's slightly over 50% chance the price goes up tomorrow. It'd be even higher if you wait longer to decide you were wrong and buy at a higher price. That means there's a better-than-even ...


0

As you can see from most of the answers, the market participants are biased toward holding due to taxes, fees, and maximizing the amount of money invested. (short term vs. long term capital gains, deferral of taxes over multiple years gives further tax advantage). However, if you trade within a retirement account for which long term versus short term ...


1

You "gain" only when you sell something. Just by owning Google stock, you are not gaining any cash in hand (if we disregard dividends). Currency can be traded efficiently, as an investment in economy of another country relative to your own. Let's say you are in the US and think that Wakanda will do better in near future, relative to your country. In ...


2

This is tax suicide You are manufacturing short term gains (you hope lol), and those will be taxed at the same rate as salary. If you are paying 25-30% tax on the gains, and you could've paid 10-15% in the long-term capital gains structure, then the gains need to be 15% better just to pay the tax on them. This is similar to the "managed mutual funds" ...


-3

The main thing to understand about the stock market is that one players win is another players loss. Except for dividends, that is. Dividends is the only way the stock market as a whole earns money. When you trade on short-term price changes, you are basically betting that you are better at it than the average trader. And believe me, you are not better ...


0

Trading by the week, month, or quarter will work much better than trading by the second, minute, or hour. Profitable operations that trade by the second or minute are selling at the Ask and buying at the Bid and even doing that simultaneously. Trading by the week, month, or quarter will be either a systematic method, the judgement of an individual, or the ...


2

I read a report from broker that said their customers who had the best returns were those who were dead. OK, those who had not logged into their account for years. The point being that holding for a long, long time, without tinkering does give you the best returns. Its documented in many places, possibly the best-known one being Doris. Selling and buying ...


3

Statistically, rapid trading by predicting shares prices (A.K.A stock picking) doesn't work. There is research paper like Boys Will Be Boys: Gender, Overconfidence, And Common Stock Investment showing stocking picking or "active stock management" always perform badly in the long run. Daniel Kahneman himself has mentioned the paper in his book "Thinking, ...


5

I think paper trading accounts are a waste of time. The best learning tool is losing money. It's kind of like touching a hot stove, touching a toy stove just doesn't have the same effect. I say put your strategy to work, after you've lost some amount of money you'll lose interest. It's not as though you're talking about short positions and buying on ...


6

The key issue with your proposed strategy is that after you sell your small gain the stock price may never drop to your buy point again. Example you buy some apple stock at the start of the year in 2017 at about $116 per share. The price rises! lucky you! So you sell a month later for about $126 per share. The next step of your plan dictates we wait for ...


15

Joseph, I've read the other answers and your comments to the answers, and I think I might be able to shine a light on something you're missing (and that the other answers don't directly address) What you're describing is gambling. Let me describe why. Your algorithm is: Pick a stock to buy, add 5% to the price, and simply sell when it reaches that price. ...


16

In the case of Apple you at least get dividends. Dividends provide zero total return. Obviously there will be more fees through the buying/selling. As of recently, there will not be more fees from trading because commissions are going the way of the dodo bird (extinct). Sure - for example if I had bought Apple end of July for 199$ and sold it mid ...


4

To know if something like this will work is to go back in time and see how it would have worked for years. You need to see it under different conditions. You need to have a plan for when the price is trending down; or when it is moving sideways. You need to know what you will do when you are waiting for the perfect time to sell or the perfect time to buy, ...


50

What you are missing is that over the long run, the market expectation is positive, and for the S&P, about 10%/yr. But, day to day, any given day is very close to a flip of a coin. When you take your tiny gain at $105 (your example) and the stock continues to rise, what then? Your plan requires you to be right, not once, but twice. I remember the crash ...


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