Stock Trading and Other Things

What's the best stock investing/trading strategy for beginners with some experience for the first 5 years?

I am currently 19, and I have had about a year of experience in stock investing/trading as well as reading some good books and internet articles.

What I want to know is, what investing/trading strategy should I be looking at for at least the first 5 years of my stock investing/trading career, or until I turn 24?

Public Comments

1. The kind of person you are- everything from intelligence to knowledge, instinct, risk tolerance and guts all make up part of the answer. I think there is some similarity to poker, in that you have to find your style as well as know the game to be a winner. Some players can bluff, some can't. Some investors can think critically and accurately when in an emotionally intense situation, some can't. That's how it works.

Best advice is to know your limits, what you are comfortable with and capable of, and stay within them. Experience is the best teacher, and school never ends.

Strategy MUST include the existing conditions, and must adapt to conditions when they change. The market is not normal now, and hasn't been for some time. At the depth of the recession those who had smarts enough to preserve their cash were jumping in the bottom of the hole when others were terrified. I got my mother to cash in a CD that I have invested and managed for her since late 08, went to cash as the market dropped and waited for that moment. That portfolio is up 593% in 33 months since it opened. The conditions that made that possible are gone, but there are new conditions and new opportunities. Not that will go as fast or as far, but still some that will be 10X in 3 to 5 years. We are still in a recovery mode, and my strategy bets on the recovery of already proven stocks as opposed to wildcat gains and new highs for less proven ones. With any strategy, the universal trick is to position yourself with the right stocks at the right time. Every stock is a winner or loser, depending on when you buy and sell.

2. Which is it, trading or investing? What type of holding periods do you expect to have? Are you looking at Fundamental Analysis or Technical Analysis?

Without those answers..... there's little someone could suggest.

3. study bill gates/ warren b
read think and grow rich

4. you may need this strategy book and within personal coaching, this page has ever helped me reaching my recent success in trading, see more here http://bigstocktrader.blogspot.com/

5. Investing for growth http://www.shareworld.co.uk/index.php/articles/notices/investing-for-growth/
This describes two different ideas for investment, and it is very brief outline, but it may give you an idea where to start.

6. Any investment strategy should be based on your attitude to risk and investment time horizon. Just because one market is doing well or in the press don't lump all in that area. Invest in a broad and diversified portfolio of investments, Fixed Interest, Property, UK Equities, Global Equities. Studies have shown that up to 90% or returns our down to having a strategic asset allocation and only circa 10% is down to stock selection, market timing etc.

The best way of doing this is via a portfolio of Unit Trust or OEICS. These give you access to markets that an individual investor would have no hope in accessing. I would suggest speaking to an Independent Financial Adviser.

Where every you decide make sure you maximise your ISA allowance, £10,200 per annum