How do you invest the money you make?

[firlandsfarm]

Don't panic

I'm not Mark, it wasn't a serious post more a "why can't the guy speak in plain English" post! No doubt he feels the need to speak like that to make him sound more knowledgeable and important.

[gunnerryan]

What app or website do you recommend for investing in stocks? Or what platform do you use?
I want a platform for investing long term that won't automatically shut down a trade.

[Euler]

To do basic research I use Stockopedia, lovely platform.

Guess it depends on what you are trying to do.

[gunnerryan]

Thanks Peter,

The question is more around the platform. I want to invest in stocks, long term, without the trades automatically closing on me.

I played around on practice 500 account. I found the trades closed automatically because the market only open for a short period. Like the trading time was from Jan - March on some forex markets. Even though there was enough (practice) money to cover the margin, trades closed in March at the end of the trading period.

I'm also not sure if I should leverage trades. Maybe I should start off with simple investments without any leverage, and if it goes up 10%, I make 10%.I suppose that's for me to work out

[PDC]

I'm also not sure if I should leverage trades. Maybe I should start off with simple investments without any leverage, and if it goes up 10%, I make 10%.I suppose that's for me to work out

Likewise if it goes down 10% you lose 10% not a multiple of it.

Don't touch leverage with a barge pole.

Yeah it is great when things are going your way but it can bring the house down when it goes wrong. Day's like today don't happen often but you can be sure there are plenty of people out there who were leveraged up and have done their conkers and some today.

[Diacritical Quark]

I stopped directional trading a few years ago because of that very scenario. Trying to pick tops and bottoms of trends was like flipping a coin. Much happier these days with a nice, small, piece of the pie.

[weemac]

The top 3 pieces of advice I've been given over decades by wise old heads in the investing arena would have saved/made me SO much if only I'd always heeded them.

1. Don't try and call the bottom of a falling market - the market tells you where it's going.
2. Invest for (growing) income.
3. The first cut is the cheapest.

[gunnerryan]

Thanks for the advice Mac.

I don't have an ISA of any kind so I'm leaning towards a stocks and shares ISA. Anyone got one and can recommend who to go with?
What platform do you lads use to make your long term stock investments? I'm very suspicious of trading platforms, they don't seem as straightforward as Betfair.

[firlandsfarm]

I don't have an ISA of any kind so I'm leaning towards a stocks and shares ISA. Anyone got one and can recommend who to go with?
What platform do you lads use to make your long term stock investments? I'm very suspicious of trading platforms, they don't seem as straightforward as Betfair.

From an investment point of view there is really only one issue … who will invest the money (you, an adviser or fund managers). Charges are relevant but don't choose on charges, a good return will easily cover if the charges are higher. Also relevant is service, some will accept poor service if the returns are higher while some will accept a lower return if they are told with good service! Last year's best performer will not be this years. If going the adviser/manager route look for one that is consistently in the 2nd quartile for they will be upper quartile in the long term.

[arbitrage16]

I don't have an ISA of any kind so I'm leaning towards a stocks and shares ISA. Anyone got one and can recommend who to go with?
What platform do you lads use to make your long term stock investments? I'm very suspicious of trading platforms, they don't seem as straightforward as Betfair.

don't choose on charges, a good return will easily cover if the charges are higher.

This advice contradicts what is suggested by Tim Hale in his book Smarter Investing - fees are the return killer, so keep them low as an absolute priority.

[Euler]

It depends on how long term your horizon is. Short term it kills all profit, long term it's let impactful.

[arbitrage16]

It depends on how long term your horizon is. Short term it kills all profit, long term it's let impactful.

Sure about that? Check the chart here:

https://www.bogleheads.org/wiki/Index_fund

[PDC]

It depends on how long term your horizon is. Short term it kills all profit, long term it's let impactful.

Hmmm, you sure you don't have that the wrong way round:

fees.png

[firlandsfarm]

This advice contradicts what is suggested by Tim Hale in his book Smarter Investing - fees are the return killer, so keep them low as an absolute priority.

What would you rather have … 10% return with 2% fees or 5% return with 1% fees? I appreciate there is an implicit element of hindsight in such a comparison but to me it's a no-brainer. The best is the best net return. Investment returns are much more variable than fee levels.

[arbitrage16]

This advice contradicts what is suggested by Tim Hale in his book Smarter Investing - fees are the return killer, so keep them low as an absolute priority.

What would you rather have … 10% return with 2% fees or 5% return with 1% fees? I appreciate there is an implicit element of hindsight in such a comparison but to me it's a no-brainer. The best is the best net return. Investment returns are much more variable than fee levels.

It's not even the element of hindsight, it's that you've just taken two examples out of thin air that fit your argument, so it's a completely useless comparison.

What we could suggest is that the "10% return" has 2% fees, so is more likely to be an active fund, which have been shown, time and again, to fail to outperform the market. When fees are added in, they drastically underperform versus the market average.

Your perspective on fees and investing is way behind the current, date-based perspective on the impact of fees. Basically, you're wrong, and all the actual evidence illustrates it.