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Why bother reading this?



A very good question indeed. There is no shortage of books, investment magazines, websites, Facebook pages, blogs. Why add another one to your burgeoning list? 

One thing that I’ve noticed with all of the above is that they tend to be written by people “in the know”. People who have either traded professionally or have come up with some system for making money that often involves selling extra things to people. They are followed because they are generally successful or well regarded. Their audience tends to be ordinary people who just want to learn how to make money through investing

I am one of those ordinary people. I’ve learned a lot from reading and listening to these gurus over the past eight years. I’ve been moderately successful and crucially have learned a lot along the way. All I want to do is teach people how, with some basic knowledge and some patience, they should be able to make some money in the stock market.

If you decide to carry on reading this blog (and if you do you are deemed to have accepted the terms of this disclaimer.) I intend to cover the following topics over the next few months:

1.      Investor psychology (why this is key before you do anything else)
2.    How to trade as efficiently as possible (covering ISAs, SIPPs, dealing accounts and over-trading)
3.    How to understand risk (looking at all of the risks you face and how understanding them can play to your advantage)
4.       How much to invest (how much you need to start with and how to deploy it, dependent on your circumstances)
5.       The joy of compounding (how if you understand this, it can help you make serious returns)
6.       What resources are out there to help you (both free and paid)
7.       Why size matters (looking at the relevant pros and cons of investing in large, mid and small caps)
8.       Why sector matters (understanding cyclical versus defensive stocks)
9.       Where to find ideas for stock investment (there are more places than ever to find ideas; which work?)
10.       What tools and resources are worth paying for (and which are not)?
11.      What are great signs when researching stock ideas (and worthy of further digging)?
12.   What are red flags when researching stock ideas (and should cause you further thought)?
13.   When to buy (timing can be crucial)
14.   When to sell (probably the most vexed question of them all!)

Throughout I will take some weeks when I tell stories about what has worked really well for me (and led to good success) and what has gone badly.

If you go into this, I guarantee that you will lose money. There will be stocks that will definitely lose you money. The key to success is making sure that you deal with those quickly and crucially you allow your gains (and there should be some) to outweigh those which lose. That’s why I’m going to be focusing on investor psychology first and foremost.

The usual disclaimers set out in my first blog always apply- do read them!

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