Individuals and institution have been making money in the markets for centuries.
It all started in DevDosh Ltd favourite asset – Debt. In the 1100’s French courretiers de change traded agricultural debt, in the early 1300’s merchants in Venice, Pisa, Verona and Genoa traded government securities; and then in the 1400’s in Antwerp things really took shape under the Van der Beurzen family. They introduced what could be called the modern stock market system. The institutions and infrastructure resembled today’s stock market but they traded in debt, the first stock didn’t arrive until the 1600 with the famous East India Company.
I’ll stop the history lesson there. The point is, humans have been trading the markets for centuries. So why have so few got the hang of something so simple? You would think that everyone would be buying low, selling high and living their best life life with the least work but that isn’t the case.
The primary reason is greed and laziness. Warren Buffet is one of the most successful investors in the world with a net worth of about $85B so probably worth listening to. One of his famous quotes is;
“The stock market is a device for transferring money from the impatient to the patient”
Fewer truer words have been spoken. The patient learn, research and compound. The impatient rush in, act on emotion and spend the wealth they create before they can make it work for them.
DevDosh Ltd : Beat the markets
So here’s the meat and potatoes. The step by step to making those life changing stock market profits.
This is not exhaustive obviously, there are books and books for that. It is the beginning of what most industry professionals wont ever tell you though.
- Don’t trust the financial industry. They are servicing your business for their benefit not yours. They will either be selling you long term commitments to attract the highest remuneration, churning you in and out of positions for commission or selling you what their buy side wants to be shot of.
- Before buying into the hype of intraday trading and or FX trading learn to calculate market volatility and use it as a barometer of what to trade. (HINT: You wont find it on the major indexes or currency pairs)
DevDosh Ltd : DIY Trader 1o1
- Study the market
- Become expert in a sector
- Raise £50,000 capital
- Trade with a simulation account while you raise capital
- Mandate your activity to return 2%-3% per month
- Deploy capital into 15-20 long/short positions with max 5% position limits over 1-3 month time horizons
- Load you winners, trade with x4 leverage and adjust your stop loss as your positions gain value
- Cut your losers
- Compound your returns
- Continue for about 7 years
- Retire from the markets with £50,000,000
- Work with an offshore wealth manager that does not charge management fees and has a hurdle rate in their performance fee structure
- Accept that investing responsibly is about capital preservation and growth and reflect this in a well balanced portfolio
Good luck. The world of investment is an intellectual playground with the most amazing rewards.
DevDosh Ltd is a much simpler way to protect and grow your capital. It is ideal for the risk averse and for those that do not have the time to dedicate themselves to the daily intricacies of active investing. If you are looking for the safest 10% yield in today’s fixed income investment market contact us today and see how we can help.