Vanguard Life Strategy

Gadfium

Sanoffo wrote: »

So I took the plunge last week on 15k in the Vanguard LifeStrategy 80% Equity GBP Accumulation. This is my first investment and yes I am feeling shakey after losing £280 in 4 days.

You haven't lost £280. You only lose when you cash it in and crystallise the profit/loss.

The way that I look at is is this: I had cash. I traded that cash for something called a LifeStrategy fund, which has a variable value. This is now no longer cash, rather it is an intangible thing that I can, at some point in the future, exchange it for cash. Its up to me when I make that exchange. If I exchange it when the value is low then thats when I make a loss. It I exchange it when the value is high, then I've made a profit.

A_Flock_Of_Sheep

Also remember that when things are on the downward spiral it forms a buying opportunity.

It is strange how it seems more easy for these investments to "lose" rather than "gain". And when they lose it seems to take a long time for them to go back to a zero level and make a profit.

black_taxi_2

there's also market corrections,5,10,15,20,25,30% crash

5 years--probably better to put it in a fixed rate.cash isa BUT no one knows where market will be xmas,never mind 5 years.

A_Flock_Of_Sheep

If it is help in empathy and consolation my investments are down by 0.33% or MINUS £37. I have 11k invested.

Sanoffo

So I can cut my losses and come back when the market is more stable and I've done some homework or grin and bear a potential correction that's going to see me lose a significant pot. I've got myself into abit of a dilemma..

A_Flock_Of_Sheep

Sanoffo wrote: »

So I can cut my losses and come back when the market is more stable and I've done some homework or grin and bear a potential correction that's going to see me lose a significant pot. I've got myself into abit of a dilemma..

1. The market will never be more stable. The market is volatile. The sooner you realise it the better.

2. Cutting your losses is a stupid thing to do. It is not smarter investing and all you do is donate to the industry croupier and walk away with less than you had.

3. It is good to go away and do some homework even in retrospect.

4. You will only lose if you cash in at a loss

5. You will also gain dividends which will add to your pot and also this compounding effect is powerful.

6. It is early days yet. Log on in 10 years time and then make a decision.

Oh and for what it is worth - I am a new investor like you

A_Flock_Of_Sheep

This is you:

"I think I will invest but Equities are quite risky. The market looks good at the moment though everything is on the up so I will hop on."

"It's great everything is going well"

"Oh last few days it's gone down. Just a blip though"

"It's still going down. This isn't right. I am now over £200 down"

SEVERAL MONTHS LATER

"My money has halved. Eeek. I can't take this any more I am off even though I am selling at half the value. I won't be getting involved in Stocks and Shares again".

A_Flock_Of_Sheep

Ohh and I don't have any Vanguard Life Strategy Products and I have a feelig in my water that the FTSE100 will drop to about 6,400 before any positive upward trend.

Sanoffo

Yes Flock, I can see that being me. My misses would probably have a hand pulling earlier mind, hence the reason I'm here so I have a leg to stand on. I don't want it to be me. Please don't be me.

A_Flock_Of_Sheep

I am a new investor and you only have to see some of my previous posts and how annoying I am to the amazing regular long standing investors!

I made some errors early on an no doubt will in the future. I was busy gambling on the markets until about a week ago the Nikkei dropped by over 7% overnight. It was a wake up call so I sold out and quit while I was ahead. I then on the recommendation of the lovely people here read Tim Hales book called Smarter Investing, He actually advocates the Vanguard Life Strategy range.

But from my limited knowledge of investing it seems you have placed all your money in one fund which seems quite limiting. Am I right in thinking you have just bundled 15k into Vanguard Life Strategy?