RE: Buy & sell call31 Jul 2017 15:19
Hi 3putt. I think investing is essentially gambling, especially at the AIM end of the markets, where for all kinds of reasons a good RNS can be met with a sell off and vice versa. Sentiment and human behaviour often trump logic, sadly. Either way, you risk some money for the chance to gain more. You adjust your stake based on your own criteria; risk, overall wealth, cashflow etc. The main benefit with investing is you are buying something with a value and after any given race is won or lost e.g. Christmas for retailers, you still own something of value (usually!), which is why I never got into betting. My approach is based upon empiricism, self-awareness of my strengths and weaknesses and an assigned value for my time. I try stuff, fail, learn, adjust. I used to spend a lot of my free-time researching companies at a novice-level. It did not help as I didn’t have the required knowledges. I lost frequently. Many delegate to an Investment Adviser for this, but IAs only look at you if you’ve more than £250k and they take a cut. I realised I didn’t have the time or inclination to learn say accountancy to an amateur-level and even if I did, many in the market would be professionals and above, so there would be no real advantage from that perspective. Besides, so much is about sentiment anyway, which is so easy to manipulate as we’ve seen in recent years politically. So I switched tack and began identifying people who tended to call it right - after all this is the critical metric - and who were open about their trades, good and bad. I use these as a pre-filter and then layer my own research on top e.g. I work in software, so recently looked at FBT and their product didn’t float my boat, so I didn’t invest. I am winning more and recovering losses, but crucially at a £/h (cost per hour) with which I’m comfortable. This reply has just eaten into my £/h, but thought you might find another unconventional perspective of interest. DYOR ;)
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