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

chronicsaver

I forgot to add - if you want to get into spreadbetting try your hands at a demo first. There are many which are free online.

chronicsaver

Abbey_11 wrote: »

The fact that it's great and motivate members and puts them hope

Hash thanks but I feel like I've missed something here... As in seems like you were trying to reply to someone!

archer7

This thread is making me rather nervous. I appreciate that I do not know everything about these markets but I'd like you to consider my opinion.

Generally, studies show that stock picking is not successful. Frequent trading is also generally associated with worse outcomes. Retail investors as a whole can suffer a lot from a lack of market information and lack of technology infrastructure - remember that your trades are competing with those of major financial institutions who are investing a hell of a lot more time, money and knowledge. As a consequence, about 95% of retail day traders lose money over the long term, and many lose enormous amounts due to poor risk management.

In terms of spread betting, an enormous amount of people involved with it have been found to engage in problem gambling behaviours, and you mentioned chasing your losses. It worries me that your risk management strategy has let that happen.

My understanding is that many successful people in financial trading, spread betting and sports betting will work under the assumption that their strategies can fail at any time, either because they were never right to begin with and their profits were down to chance or because the market conditions have changed. They typically expect to have a very low advantage over others in the market. A strict risk management system (normally involving a lot of complex statistics) will smooth out market fluctuations and it can mean that your low % advantage will even out well to provide stable returns.

With £10k savings in your original post and saving £1k per month, if your profit figures are correct then I am very worried about your risk management. I don't doubt that your figures are attainable in the short term, but I strongly doubt they are sustainable. I would urge you to be extremely careful and review your risk management calculations. I feel your cash savings are relatively low and you should probably be putting more money in savings first before speculating on highly volatile markets.

chronicsaver

archer7 wrote: »

This thread is making me rather nervous. I appreciate that I do not know everything about these markets but I'd like you to consider my opinion.

Generally, studies show that stock picking is not successful. Frequent trading is also generally associated with worse outcomes. Retail investors as a whole can suffer a lot from a lack of market information and lack of technology infrastructure - remember that your trades are competing with those of major financial institutions who are investing a hell of a lot more time, money and knowledge. As a consequence, about 95% of retail day traders lose money over the long term, and many lose enormous amounts due to poor risk management.

In terms of spread betting, an enormous amount of people involved with it have been found to engage in problem gambling behaviours, and you mentioned chasing your losses. It worries me that your risk management strategy has let that happen.

My understanding is that many successful people in financial trading, spread betting and sports betting will work under the assumption that their strategies can fail at any time, either because they were never right to begin with and their profits were down to chance or because the market conditions have changed. They typically expect to have a very low advantage over others in the market. A strict risk management system (normally involving a lot of complex statistics) will smooth out market fluctuations and it can mean that your low % advantage will even out well to provide stable returns.

With £10k savings in your original post and saving £1k per month, if your profit figures are correct then I am very worried about your risk management. I don't doubt that your figures are attainable in the short term, but I strongly doubt they are sustainable. I would urge you to be extremely careful and review your risk management calculations. I feel your cash savings are relatively low and you should probably be putting more money in savings first before speculating on highly volatile markets.

Whilst I'm not going to write a long reply to this, I 100% agree with everything you have said. And this week's losses have proved exactly that. (I will document on Friday) But put it this way, i've pretty much lost close to £400 I think =/ but have gained about £800 in my stocks this week alone (unrealised)

But as a challenge, for me, I'm at an age where I can afford to take risks. With all due respect, putting money in a savings account is pretty pointless for me. I'm not going to go into the details as to why etc.

With all that said, fear gets you absolutely nowhere in life. Anyone who has achieved something worth shouting about has had to take a risk - calculated of course. The reason why I guess i've lost a huge amount this week is because my risks weren't calculated, but that's part and parcel of life you live and you learn.

I spreadbet because I in fact love trading, love the financial markets infact. Whilst I see your point about gambling, I guess fundamentally it is but that's not the fundamental reason I do it.

Over the past year, so before this thread, I made close to about £2000 matched betting and investing in stocks. Losses were minimal - in fact, it's only when I started spreadbetting that I began to suffer losses but you learn to get use to those.

Most people lose at daytrading because they...day trade. IMO day trading is a mugs game and it's why i've lost what i've lost this week. You cannot possibly time the markets. My trading style is different. i take a view and stick to it!

I said I wasn't going to write a long reply but ahh well. In honesty, thank you for your opinion. Sometimes you need posts like that to keep you in check. And please keep writing in

chronicsaver

Hi Everyone,

So as promised...profits for the week...£890.1 Made from a mixture of realising my profits from my stocks, winning £100 in a competition (fantasy football), £250 work income and last but not least cashback on work. This figure would have been much much higher but my speadbetting / trading account took a massive hit... I lost -£366. I was pretty much trying out a new strategy and clearly it didn't work =/ but ah well, you won't know if you don't try. Just going to stick to strategies that I know! There you have it though, those are the perils of trading. I did a quick pivot table and found that most, if not all of my losses came on the DOW Jones - ridiculous! And all my gains came from the DAX and FTSE - which I find pretty easy to trade. Still a week to do so let's hope we can get above £2000

But yh, aside from that - pretty decent week but it would have been nice to break the £1000 mark - but ah well it will definitely come one day.

Because I've realised profits from my stocks, I'm not too sure what I'm going to do now =/ I'm probably going to wait and see how the stocks look going forward and see where there are breakout areas etc and will probably go back in. Will probably research some other stocks to put money in also but we'll see.

Anyone have any ideas? any banks offering good interest? prerably above 5%?

Once again, any questions...let me know!

cazmanian_minx

For trying out new strategies, would it be an idea to test them in a model spreadbetting portfolio somewhere like https://www.bullbearings.co.uk first rather than going straight into live positions? You have to create an account, but it's free and then you can set up fantasy portfolios in stocks, spreadbetting, CFDs, FX and fixed odds betting.

chronicsaver

cazmanian_minx wrote: »

For trying out new strategies, would it be an idea to test them in a model spreadbetting portfolio somewhere like https://www.bullbearings.co.uk first rather than going straight into live positions? You have to create an account, but it's free and then you can set up fantasy portfolios in stocks, spreadbetting, CFDs, FX and fixed odds betting.

Yup, you're right. I use the CMC market demo to test strategies now.

Also....there's been a correction to my profits for the week. *see above Woke up to find the share I was about to sell this morning shoot up I've still got my money in Telford Homes & Inland Homes but I've taken it out of UDG Healthcare - I'm not that enthusiastic about whether it can continue to return value to it's shareholders.

I've creamed profits for Inland and Telford but still have quite a lot of money in them if that makes sense :S

chronicsaver

Hello Everyone,

Hope you enjoyed the relatively short week =/

Profits / Savings for this week: £341.50 Work pension contribution, mixture of spreadbetting and obviously our £250 a week saving. That's me done for may - Overall saving £1978.36. Not bad but really and truly should have been more if it wasn't for some really stupid mistakes. Those mistakes actually cost me close to a £1000 haha so you can see how much i would have made. Ah well, as you can see I've still got a decent amount for the month.

I've learnt so much this month about making more - don't get too greedy and wait for opportunities!

I'm going to America w/c 8th June so earnings maybe affected - we'll see.

Any questions, let me know. I'm trying to write more but kinda struggling for content. If there's anything you guys would like to see - let me know

dktreesea

COOLTRIKERCHICK wrote: »

thanks, we only got just a few acres, of basically over grown shrub/trees etc, which at the moment is only good enough for pigs, and the land around the house is good enough for a very large veggie patch.


our land backs onto huge fields, which we have tried to ask to buy one/part of one, but I think for the reason you mentioned they must get some sort of subsidy as they are not interested... they don't grow anything.. just got a few horses grazing very poor grade fields..


but will look into seeing if there are anything small grants especially for wildlife etc..

Yes, I would say, from your description of the fields, the owners may be getting a subsidy from the EU. Some subsidies depend on keeping the land as pasture and not allowing any other use, not even a car boot sale once a year. Iain Duncan Smith ahs a farm somewhere down south which does well out of the subsidies.

sunshine81

Sorry if I am missing the obvious, but... where can I find your blog?