£10,000 to £1,000,000 in 6 years - Journey of a Chronic Income booster

chronicsaver · 29 March 2015 at 2:37PM

Broken_Biscuits wrote: »

you see my point about content from a few minutes ago, well w00 will have to ask you another question to get the answer to his first question now.

and sure this thread is about you. You started it about yourself. Fair enough, but you will need some interaction too. People post something, you reply about your thing with a lot of spaces where the content should be and don't take an interest in the posters comments. You may well make your million in 10 years, but if you want to document it and for people to follow, well it has to be interesting.

you could have said which tracker you have and what research led you to pick just that one ahead of a more traditional balanced portfolio. you could have said What shares you have or least what sector they are in and why you picked those shares. You could have had a comment on my choice to put money into an actively managed failing fund. You could have given some details on any of the things you are doing really. (you could have worked out that saving £1000 a month is worse than £250 a week too - and if shown as 250 a week at year end will leave your calculations a grand off the real figure...)

10 years is a long time and i hope you do it.
i would say for me, if lady luck is very kind to me i could achieve somewhere around 250-300k in 10 years. But that's without huge amounts of risk. Id expect my worse case scenario to be not hugely off this figure. Rather have a slow approach where total returns are smaller but there's no element of wondering whether i will end up with next to nothing from taking on too much risk!

I see your point. But He asked me what what stocks and shares ISA i invest in (there's no such thing tbh) and he asked me do I pick shares myself or invest in funds. I gave him his answer. If he wanted more, then it's up to him to ask. In fact, I was going to comment on the fact you've invested in a Russian fund. If you asked me what my opinion was i would have given it to you. As much as it's about me sharing detail, it's also up to people to ask. I've said it countless time, you'll see the reason for my investments in my blog. I'm treading a very careful line because I don't want people holding me to account for a particular fund/share they've invested in (say it plummets!). All that said however, I think my next blog post is going to be how I pick my shares! Look out for it

That said, I take your point. Will try and make this thread more interesting, but don't forget my blog either!

chronicsaver · 29 March 2015 at 2:49PM

w00519772 wrote: »

Can I ask what provider you use and how often you invest? The reason I ask is because I would like to start selecting my own shares but only have about £2k. Everyone tells me on here that this will not be possible because the transaction costs would outweigh any gain.

I use Hargreaves and Lansdown. The bold is a good start. And that's rubbish about the transaction costs. It's only an issue if you trade often/too much i.e it's £11.95 per trade you make (buy/sell). I'd say start with a a European Index tracker. Given there's been a massive bout of QE (quantitative easing) Europe is a good area to invest in the Medium Term. If you go onto page 4 of the thread, you'll see the name of the fund I've got money in. Let your money grow in something like that before you start putting it into individual shares - it's quite risky. I put about £1000 in a FTSE all share Tracker and it made me £110 over 6 months. Yh nothing great, but on a £1000 that's a decent return. Hope that answers your question. If not, more than happy to go further. Check my blog on the reasons I've invested in a particular share/fund (PM me so I can send you the link)

w00519772 · 29 March 2015 at 2:58PM

chronicsaver wrote: »

I use Hargreaves and Lansdown. The bold is a good start. And that's rubbish about the transaction costs. It's only an issue if you trade often/too much i.e it's £11.95 per trade you make (buy/sell). I'd say start with a a European Index tracker. Given there's been a massive bout of QE (quantitative easing) Europe is a good area to invest in the Medium Term. If you go onto page 4 of the thread, you'll see the name of the fund I've got money in. Let your money grow in something like that before you start putting it into individual shares - it's quite risky. I put about £1000 in a FTSE all share Tracker and it made me £110 over 6 months. Yh nothing great, but on a £1000 that's a decent return. Hope that answers your question. If not, more than happy to go further. Check my blog on the reasons I've invested in a particular share/fund (PM me so I can send you the link)

How often do you trade? Once a day/month/year? I would be interested to know how much you have invested in stocks and shares if you are willing to say (like I have).

chronicsaver · 29 March 2015 at 3:19PM

w00519772 wrote: »

How often do you trade? Once a day/month/year? I would be interested to know how much you have invested in stocks and shares if you are willing to say (like I have).

As I've said in this thread, I've got a Spreadbetting account so If I want to move in and out of positions, I use that. Typically when it comes to shares, depending on my view of the stock, the economy, latest news etc, I trade once or twice a year. So for example, my FTSE all share tracker made me £110 as I said, but my view on the US market (which accounted for 50% of the fund) is that it's going to sell-off majorly when the Federal Reserve raises interest rates (and also valuations are high compared to historical standards), hence I took profits and moved it into Europe. I've currently got £5000 invested in Stocks and Shares (£4000 in Inland Homes and £1110 in a European Index Tracker). I'm going to put this up to £2000 next month just currently researching some stocks at the moment (Essentra and BT). Just to add as well, I regularly put £100 + all my extra income in the European Tracker every month. Just so my money isn't lying around rotting in a current account!

chronicsaver · 29 March 2015 at 3:21PM

If anyone wants a lay man's introduction to the world of investing in Shares/Trading, have a read of a book called "The Naked Trader"

chronicsaver · 29 March 2015 at 5:51PM

Ok so as I said, today is my first day "Trading Horses" on betfair (fancy term for gambling really), but I'm betting on the odds movement rather than the outright result if that makes sense :S I'm testing a strategy out at the moment (i won't reveal till I'm comfortable with it). The amount of profits you see here are based on £10 stakes. Hopefully if the strategy is profitable for a month or so, I'm going to start doing it with £100 stakes. So based on that screenshot, it'd be a profit of £441.90 for the day if I staked £100 per "trade".

Please note that this involves risks, so it won't be everyone's cup of tea!

chronicsaver · 29 March 2015 at 6:01PM

Depending on if particular horses races fit my strategy, I plan to do this everyday.

chronicsaver · 1 April 2015 at 11:13AM

Hi everyone, so as I said I'm off work this week. Surprise surprise, my income has increased. It's funny the amount of things you can do when you have free time!

Above is all my earnings for this week (regular £250 work savings have been added). We've still got 5 more days to get this total up (if you include today) but all in all, it's been pretty decent so far. * All earnings are from 29th March

In terms of my Spreadbetting Account (trading) I let go of a few positions a bit early, namely the FTSE one. I was just sick and tired of holding it for so long so just decided to sell when I broke even (lost £38 on overnight costs - held for about 2 weeks I think). It managed to sell off a further 130 points (to 6700) which was my original target but hey ho, you live and you learn! I also had a Euro stoxx position I let go of early. I was £130 in profit and instead of sticking to my guns, I just traded out (I would have been £300 up if I stuck to my limit position - I guess I got a bit too profit happy). Nonetheless, I'm still happy with that.

My Horse Trading Strategy is kinda working...but as I said I'm testing it out on a few races before I up my stakes to £100 (maximum loss of £60 per race) on it. Currently I'm only doing £10. I've got about 7 races which I'm testing it out on today, so hopefully it can yield some results.

Another thing...I can see why I don't post screenshots - it takes me ages to do/upload! But i'll try and set some time over the weekend for that.

What I've learnt from this and what you can learn also:
If you to do any type of gambling, trading etc make sure you understand the market properly and the things that affect any movement in prices.
Don't chase your losses
When you've made profits, take the money out and put it in a European Index Tracker/any fund of your choosing (I've given my reasons countless times) - always let your money keep rolling over.
When you see losses in your account/on a trade - don't trade out immediately. If you read my earlier posts, i was down -£700 last week (unrealised loss). A few months ago, I probably would have traded out, but this time I kept to my guns particularly on the FTSE as the circumstances surrounding my view hadn't changed. Low and behold I ended up breaking even.

I hope that's covered everything and look out over the weekend for the full weekly update. Until then, any questions, let me know - I'm more than happy to help. Again, I hope this has given you some ideas as well :beer: