stockmarkets -are we nearing the bottom or is there further to go ??

bowlhead99

lolamia wrote: »

Has anyone ever tried currency trading?

The way to do that successfully is to do it for a job where you get a bonus if you do well but don't have to make good the losses when you fail.

I have placed large forward contract positions to hedge my foreign currency balances or a prospective foreign currency salary, and made some smaller 'bets' from time to time. And through work I've helped sign off the paperwork for some transactions in the tens of millions to buy or sell currencies resulting from buying or selling large companies. But nothing I'd call "trading" as in buying or selling for a living.

Why ask the question in two random thread?

Glen_Clark

bowlhead99 wrote: »

The way to do (currency trading) successfully is to do it for a job where you get a bonus if you do well but don't have to make good the losses when you fail.

Same as share trading then

Kendall80

lolamia wrote: »

Has anyone ever tried currency trading?

Through a spread betting company yes. I found EUR:USD the easiest to profit from and had the tightest spreads. If only i'd quit while ahead!

Alcorn60

This year I have looked a 1000% more into the amount of growth /loss of my investment pension with Aviva . This is only because I had decided to retire early aged 59. In April last year when I retired ,I decided to leave pension as is, i.e paid up!! the idea being to give me time get my head round my finances . The amount was back in to April around 160k pension + an ISA investment of around 60K. But !! this last 6 months the values have droped dramatically, especially since the begining of January, its droped another 4% . The ISA is now below my my actual investment amount . Simply I've panicked and arranged for my pension to be transfered into a SIP account with Aviva. (cash account) this will now allow me to drawdown when I do require funds .Can I ask ? Would you who are more experianced at this , reinvest it or leave it safe in the cash account until the current volitile market looks like its starting to recover? Also what would you advise me to do with the ISA ,leave it or move it? I also have in place a bank savings buffer to get me through a year or two . Please remember I am a complete novice in finance etc I have never worked in anything to do with figures or finances and the money is my life savings and once depleted It cant be replaced, I have talked to local finacial advisors who have basically said the same ,reinvest with their company in meduim risk ,as shares are low at the moment .

BananaRepublic

Alcorn60 wrote: »

This year I have looked a 1000% more into the amount of growth /loss of my investment pension with Aviva . This is only because I had decided to retire early aged 59. Back in April last year when I retired ,I decided to leave pension as is, i.e paid up!! the idea being to give me time get my head head round my finances . The amount the amount was back in to April last year around 160k pension + an ISA investment of around 60K. But !! this last 6 months the values have gone down & down,especially since the begining of January, its droped about a further 4% . The ISA is now below my my actual investment amount . Simply put I've panicked and arranged for my pension to be transfered into a SIP account with Aviva. (cash account) Can I ask ? Would you who are more experianced at this , reinvest it or leave it safe in the cash account until the market looks like its starting to recover? and what would you advise me to do with the ISA ,leave it or move it? I also have in place a bank savings buffer to get me through a year or two . Please remember I am a complete novice in finance etc I have never worked in anything to do with figures or finances and the money is my life savings and cant be replaced,once depleted. I have talked to local finacial advisors who have basically said the same ,reinvest with their company in meduim risk ,as shares are low at the moment .

Now is exactly the wrong time to convert shares into cash. Yes they could fall further, but in my view the best approach is to put on your tin helmet, and wait for the storm to pass. They may fall further, but they will rise again. I happen to believe that by the end of the year they will be quite a bit higher, but you should not base investment decisions on the beliefs of a stranger. If you NEED money, cash in the minimum from your investments. As I've said before the tendency for the novice is to buy when shares are peaking and sell when they have fallen. It is often said that you should not buy when taxi drivers tell you to invest in shares, and you should buy when everyone says don't.

Linton

Alcorn60 wrote: »

As a complete novice in investing ,I admit this year I have looked 1000% more into the amount of growth /loss of my investment pension . This is only because I had decided to retire early aged 59,now 60. I decided to leave pension as is, i.e paid up!! but I have left invested this last 11 months hopefully to grow until needed. The amount was back in April last year between 155/ 200k. But !! this last 6 months the value went down & down since the begining of January its droped about a further 4% . Simply put I've panicked and arranged for it to all transfered into a SIP account with Aviva. Basically so I could drawdown if funds are required ? This should be completed this week and the whole lot will be in a (Cash account) I have spoken to 2 local finacial advisors and basically they have both said exactly the same . Invest it all back into meduim risk investments through there companies .As stock is a lot lower at the moment . The trouble is reading blogs etc most have said it looks like it will continue to drop further. Can I ask ,would you reinvest it or leave it safe in the cash account until the market looks like its starting to recover? I also have in place a bank savings buffer to get me through a year or two . And a ISA investment of around 60K. Please remember I am a complete novice in finance etc

Indexes world wide have dropped by 15-20% over the past 6 months. By keeping the money in cash you are guaranteeing you will lose out when the recovery happens - your current loss will be permanent. If you wait until "the market looks like it is going to recover" you can be pretty sure it will aready have recovered a significant amount. Otherwise how will you know? So the IFAs are right - get your money re-invested and ride the ups and downs. If you are starting to actually drawdown in the immediate future I suggest you keep a few year's income needs in cash or very safe investments. The rest could be put into medium risk well diversified investments, perhaps selected by one of the IFA's you contacted. In this way your short term income is guarateed whilst you gain from the general upward trend.

You could counter my view with "will the markets ever recover?" If the markets never recover your pension falling could be the least of your problems as that would imply global economic meltdown. Under such circumstances savings could mean very little.

Alcorn60

The ISA (60k) is still currently invested as meduim risk. The pension now down to just over 144K is now being transfered to a SIP ( cash) . I had to do this with Aviva to enable drawdown as the old account would not allow me do this. I now have the choice to re-invest some or all back into what ever funds I wish .

BananaRepublic

I suspect you might benefit from talking to a pension advisor or an IFA. Other here who have had such advice - and hence will know if it was of benefit - will be better placed to comment. Please take this as only a suggestion from someone not familiar with your circumstances.

Glen_Clark

BananaRepublic wrote: »

Now is exactly the wrong time to convert shares into cash. Yes they could fall further, but in my view the best approach is to put on your tin helmet, and wait for the storm to pass. They may fall further, but they will rise again. I happen to believe that by the end of the year they will be quite a bit higher, but you should not base investment decisions on the beliefs of a stranger. If you NEED money, cash in the minimum from your investments. As I've said before the tendency for the novice is to buy when shares are peaking and sell when they have fallen. It is often said that you should not buy when taxi drivers tell you to invest in shares, and you should buy when everyone says don't.

A sensible post. Was it a mistake

BananaRepublic

Glen_Clark wrote: »

A sensible post. Was it a mistake

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