Sunday, 23rd July 2017

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Traders' views - Stock trading

The investing, trading and learning journey

By Peter Higgins, 07 Oct 2016

Three years ago I came up with the concept for a investment-focused podcast for the ShareTalk website I work on, called Conkers' Corner after my Twitter handle of @conkers3, and five months ago the first recording was made. Below are some of the lessons I have learned or have been reinforced during these years.

The concept of Conkers' Corner is very simple yet extremely educational and beneficial for all: the participants in the podcasts and interviews since I started in May 2016 have included shrewd investors/traders, ISA millionaires, high net worth individuals, business leaders, CEOs, highly respected fund managers and investment writers.

They have freely shared their views on trading and investing, their individual styles, strategies, perspectives on markets and their worst and wisest investments to date.

They have not given financial advice, however they have shared the benefits of their experiences, by sharing their insights, knowledge, best investment practices and learning.

Why are these podcasts and interviews important? Well because as Jesse Livermore famously wrote "The stock market is never obvious. It is designed to fool most of the people, most of the time". Therefore it is essential that, irrespective of age or experience in investing, we pursue continual learning.

What I have learnt from completing over thirty interviews for Conkers Corners so far includes:

  • It is not your starting point in life or level of academic qualification that ensures your success. It is your drive, passion, humility, adaptability, openness to learning and sheer hard work.

  • Dividend reinvesting and compounding your returns long-term is a great strategy for increasing your potential for significant high percentage returns on your investments.

  • If you are uncertain as to what to do during volatile markets it is more often than not, best to do nothing. In addition, if you are investing with regards to significant long-term goals, seek independent financial advice.

  • Take steps to master our own mindset and the psychology of trading and investing before, during and outside of market hours to ensure financial longevity and financial freedom.

  • Managing your expectations of the markets is key as the markets can go against fundamentals for significant periods irrespective of our research and consensus.

  • Markets will always present opportunities therefore ensure that you don't chase stocks. Highly coveted stocks with rich PEs will leave you out of pocket when they stumble or fall out of vogue.

  • Smallcap stocks have regularly outperformed their large cap peers. Indeed as small cap fund manager Gervais Williams wrote and reiterated during a Conkers' Corner interview "the future is small".

  • Trading or investing in stocks or funds using your own researched, refined methodology and strategies can lead to great success.

  • Financial success comes in many forms including the freedom of choice and autonomy. Put simply being mortgage free, debt free or being able to leave a job that you no longer enjoy are all examples of success.

  • Even though markets are volatile and there is ongoing interventions by governments adding to said volatility, thorough research and great stock-picking can lead to long-term investIng success. Leon Boros the Isa millionaire is testament to that.

Previous articles on Stock trading >>>

Warning: Remember, particularly if you are new to trading in the stock market and in forex, that the prices of shares and other investments can fall fast and you may not get back the money you originally invested. The material here is for general information only and is not intended to be relied upon for individual investment decisions. Take independent advice before making such decisions. Also, the BullBearings free stock exchange simulation portfolios are a good way to practice trading techniques.

City News

Commodities: Increasing supply of oil weighs heavy on the market

Sun, 23rd Jul - * (ShareCast News) - An over supply of crude from Nigeria and Libya of approximately 1m barrels per day weighed heavily on the oil market on Friday with September contracts for both WTI crude and Brent crude down 2.28% and 2.29% respectively.

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