Investing

thirdtry

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With retail investing being at its most popular ever currently (in part due to the Gamestop chaos that made international news, but the Internet hype was going for several months before that) I'm just wondering if anyone here does it themselves and how it's going?

Personally I made a fairly handsome amount between October and December by following the big trending stocks on various notorious message boards but shortly before Christmas lost it all on some bad moves. Regained all my losses in January and then lost a big chunk again in the huge market slump 2 weeks ago! Thankfully I only ever used savings that I would consider 'worth the risk' and never became genuinely financially affected, it blows my mind that some lunatics got loans and poured life savings into stocks that were being pumped and dumped by 50-100% in a single day. But now I'm being smart and just leaving a sensible amount in very solid companies that are (most likely) set to grow in years to come, no more crazy meme/hype trading.

Related to this - are there certain industries or companies that we shouldn't be involved in for security clearance type reasons? E.g. I'm aware US Military personnel are forbidden from investing in Cannabis companies despite being publicly-listed on the NYSE. Likewise, Defence and Intelligence stocks are quite big (let's say Palantir, BAE, Raytheon, Lockheed Martin) but as a retail investor there's also nothing stopping you from buying shares in major Chinese companies, Russian oil and gas companies etc. I've avoided such dodgy ground but is there any guidance in terms of whether such investments, as a low level retail trader, can harm security clearances?
 

Ninja_Stoker

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With retail investing being at its most popular ever currently (in part due to the Gamestop chaos that made international news, but the Internet hype was going for several months before that) I'm just wondering if anyone here does it themselves and how it's going?

Personally I made a fairly handsome amount between October and December by following the big trending stocks on various notorious message boards but shortly before Christmas lost it all on some bad moves. Regained all my losses in January and then lost a big chunk again in the huge market slump 2 weeks ago! Thankfully I only ever used savings that I would consider 'worth the risk' and never became genuinely financially affected, it blows my mind that some lunatics got loans and poured life savings into stocks that were being pumped and dumped by 50-100% in a single day. But now I'm being smart and just leaving a sensible amount in very solid companies that are (most likely) set to grow in years to come, no more crazy meme/hype trading.

Related to this - are there certain industries or companies that we shouldn't be involved in for security clearance type reasons? E.g. I'm aware US Military personnel are forbidden from investing in Cannabis companies despite being publicly-listed on the NYSE. Likewise, Defence and Intelligence stocks are quite big (let's say Palantir, BAE, Raytheon, Lockheed Martin) but as a retail investor there's also nothing stopping you from buying shares in major Chinese companies, Russian oil and gas companies etc. I've avoided such dodgy ground but is there any guidance in terms of whether such investments, as a low level retail trader, can harm security clearances?
Not heard of it being a snag but I'd be inclined to give non-NATO or hostile nation arms manufacturers a swerve from your portfolio to avoid being on the pointy receiving-end of your investments.

That said, I was on the receiving-end of British manufactured bombs dropped from US built aircraft and under threat from French-made anti-ship missiles and British, German & American built warships, so maybe my theory ain't that great.
 

ThreadpigeonsAlpha

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The house always wins. Only use money that you are prepared to lose.

I hope you are investing and not using Futures/options or CFDs. You will lose money and potentially owe a lot more, if you don’t know what you are doing.

Just remember you are a tiny fish in a huge pond with some bloody big fish in it. GameStop is an anomaly, a trend.

You don’t want to be left holding the bag at the end.
 

Sprint0205

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Don't want to be "that guy", but I have doubled my money investing in crypto. Just put a couple hundred into a few different ones (Bitcoin, Ethereum, ADA) and it has worked out great. Probably also worth saying that don't invest more than you are willing to lose and do your own research, with any type of investing.
 

Broadsword55

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How I invest is in mutual funds which have been very good for me. I currently have my investments split between three mutual funds with two of them being quite. safe investments and the third being higher risk, high reward. For a smaller investor like me who is saving £20,000 or less a year it is statistically the best thing you can do because mutual funds have thousands of stocks in their portfolio among different markets that are therefore very diversified and professionally managed so you will statistically speaking make far more money on average than you would trying to choose the stocks yourself.
The New York Stock Exchange has historically gone up at 11.4% per annum which accounting for inflation etc comes to a 7% appreciation in real terms. So at 11.4% return, if you put £6000 in now, in 25 years you would have £120,000 on average although can we expect the NYSE to still go up at that rate inn the future, possibly not. I would avoid investing in emerging markets if at all possible. You are looking at high levels of sovereign risk, capital risk and risk of fraud etc and for that reason I avoid it. The NYSE require huge amounts of paperwork therefore your investments are safe but say you invested in a Saudi Arabian company, you would have a high risk of the company being nationalised and you lose your money and the exchange rate could flop which is something you don't need to worry about when using the dollar.
 

mace

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Anyone using NS&I Premium bonds? Personally, I am planning on maxing out the £50k you can put it in those bonds first, before moving onto something like VanGuard. I know nothing about investing so that's certainly I need to learn more.
 

Broadsword55

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Anyone using NS&I Premium bonds? Personally, I am planning on maxing out the £50k you can put it in those bonds first, before moving onto something like VanGuard. I know nothing about investing so that's certainly I need to learn more.
My girlfriend has them and doesn't do very well. Last year I made 16.4% interest on mutual funds whereas she got 1% interest which is below inflation so she made a loss. It's the equivalent of investing your money or spending it all on lottery tickets. Vanguard is just a mutual fund so I would go for that first if you know little about investments.
 

Sprint0205

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Anyone using NS&I Premium bonds? Personally, I am planning on maxing out the £50k you can put it in those bonds first, before moving onto something like VanGuard. I know nothing about investing so that's certainly I need to learn more.
Yes, I have been using them since I was born, got some good returns over the years. I was thinking about starting a VanGuard ISA but not 18 yet so I'll have to wait for a bit.
 

thirdtry

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The house always wins. Only use money that you are prepared to lose.

I hope you are investing and not using Futures/options or CFDs. You will lose money and potentially owe a lot more, if you don’t know what you are doing.

Just remember you are a tiny fish in a huge pond with some bloody big fish in it. GameStop is an anomaly, a trend.

You don’t want to be left holding the bag at the end.

Yeah always shares never CFDs or the like. Thankfully I was never in GME but know several people that were, I think most are quite aware it's an anamoly but saw the quick buck. My initial profits came from the meme hype ones before GME took off, such as Nio and Palantir, but the losses came on some Pharma companies that didn't deliver the news they had been rumoured to be delivering and crashed as a result.

Whilst you do have to tick a box to say you 'know the risks' when you sign up to apps and sites I think some more verification should be done on knowledge. I'm by no means some wall street expert but have learnt a lot recently about how it works and am pretty confident I wouldn't make the same mistakes again, meanwhile had to talk a bootneck mate out of putting £10k onto a CFD account the other day because his quote "I can leverage this to £100k and I'm set for life, if making money is this easy no wonder the rich don't want retail traders learning how easy it is"... had to explain to him that he'd more than likely lose his entire savings in minutes.

I'm very cautious of the whole Crypto and EV boom currently too - social media etc only show the people making a lot of money but aren't showing those who will lose a huge amount the day it suddenly bursts at the drop of a hat.
 

Sprint0205

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I'm very cautious of the whole Crypto and EV boom currently too - social media etc only show the people making a lot of money but aren't showing those who will lose a huge amount the day it suddenly bursts at the drop of a hat.
Because Crypto is a new market, It is very volatile as I'm sure you've noticed. But, because it is becoming more and more mainstream with hedge funds etc investing in it big time now, as long as you do thorough research and don't pick S*text deleted*t coins, It is always going to go up in the long run. Bitcoin is predicted to hit $1 million at some point, and it is about $55k at the moment. It might drop to $20k before then but eventually, it is always going to go back up. That being said, I certainly wouldn't suggest piling all of your life savings into crypto *text deleted*
 

thirdtry

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How I invest is in mutual funds which have been very good for me. I currently have my investments split between three mutual funds with two of them being quite. safe investments and the third being higher risk, high reward. For a smaller investor like me who is saving £20,000 or less a year it is statistically the best thing you can do because mutual funds have thousands of stocks in their portfolio among different markets that are therefore very diversified and professionally managed so you will statistically speaking make far more money on average than you would trying to choose the stocks yourself.
The New York Stock Exchange has historically gone up at 11.4% per annum which accounting for inflation etc comes to a 7% appreciation in real terms. So at 11.4% return, if you put £6000 in now, in 25 years you would have £120,000 on average although can we expect the NYSE to still go up at that rate inn the future, possibly not. I would avoid investing in emerging markets if at all possible. You are looking at high levels of sovereign risk, capital risk and risk of fraud etc and for that reason I avoid it. The NYSE require huge amounts of paperwork therefore your investments are safe but say you invested in a Saudi Arabian company, you would have a high risk of the company being nationalised and you lose your money and the exchange rate could flop which is something you don't need to worry about when using the dollar.

ETFs/Mutual funds etc are always wisest for sure. I've always had a few quid stashed in them and generally performed better even if they're never going to achieve the mythical 'get rich quick' status.

RT is a great time to save money unless you're spunking it all away in the Naafi every night and/or become a heavy smoker, so I'm looking at probably depositing an affordable amount each month into a fairly secure fund and just letting it grow. Even if you don't leave it 20+ years and look shorter term it can be a great way to get a new car for example, as even just a year in the market generally leads to better returns than what any savings account can offer.
 

Broadsword55

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ETFs/Mutual funds etc are always wisest for sure. I've always had a few quid stashed in them and generally performed better even if they're never going to achieve the mythical 'get rich quick' status.

RT is a great time to save money unless you're spunking it all away in the Naafi every night and/or become a heavy smoker, so I'm looking at probably depositing an affordable amount each month into a fairly secure fund and just letting it grow. Even if you don't leave it 20+ years and look shorter term it can be a great way to get a new car for example, as even just a year in the market generally leads to better returns than what any savings account can offer.
Index funds are arguably better than mutual funds.
 

Broadsword55

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Because Crypto is a new market, It is very volatile as I'm sure you've noticed. But, because it is becoming more and more mainstream with hedge funds etc investing in it big time now, as long as you do thorough research and don't pick S*text deleted*t coins, It is always going to go up in the long run. Bitcoin is predicted to hit $1 million at some point, and it is about $55k at the moment. It might drop to $20k before then but eventually, it is always going to go back up. That being said, I certainly wouldn't suggest piling all of your life savings into crypto *text deleted*
Bitcoin uses more electricity than the Netherlands mostly from non-renewable sources. It is likely going to get shut down, hedge funds invest in things they expect will crash. It is more gambling than investing going into bitcoin. That being said it is a good oppurtunity but it still is a fiat currency that you can't use to buy many things and it fluctuates too much to be useful.
 

thirdtry

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Bitcoin uses more electricity than the Netherlands mostly from non-renewable sources. It is likely going to get shut down, hedge funds invest in things they expect will crash. It is more gambling than investing going into bitcoin. That being said it is a good oppurtunity but it still is a fiat currency that you can't use to buy many things and it fluctuates too much to be useful.

You can buy a Tesla with it now haha, funnily enough Tesla's stock price crashed the day Musk announced they'd accept bitcoin payments and still hasn't recovered. Have to be honest I don't know much else about it, I just thought it was the way criminals bought drugs/weapons/child-abuse-images and god knows what else on the dark web
 

Sprint0205

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You can buy a Tesla with it now haha, funnily enough Tesla's stock price crashed the day Musk announced they'd accept bitcoin payments and still hasn't recovered. Have to be honest I don't know much else about it, I just thought it was the way criminals bought drugs/weapons/child-abuse-images and god knows what else on the dark web
Contrary to what people think, Bitcoin can actually be tracked quite easily if you know what you are doing with computers. So it wouldn't be a smart move to buy illegal things with it, although there are "privacy coins" which are very hard to trace, such as monero.

Bitcoin uses more electricity than the Netherlands mostly from non-renewable sources. It is likely going to get shut down, hedge funds invest in things they expect will crash. It is more gambling than investing going into bitcoin. That being said it is a good oppurtunity but it still is a fiat currency that you can't use to buy many things and it fluctuates too much to be useful.
I don't think it is going to be shut down in western countries, and it isn't like fiat currencies because there is a finite amount of it. A central bank can't print more of it to boost consumer and business spending in times of recession. That is the main reason why I think it is here to stay. You are right in saying that it is too volatile to be used as a medium of exchange at the moment, but it is mellowing out and give it 5 years and it will be much more stable. The same goes for any emerging market.
 

Broadsword55

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Contrary to what people think, Bitcoin can actually be tracked quite easily if you know what you are doing with computers. So it wouldn't be a smart move to buy illegal things with it, although there are "privacy coins" which are very hard to trace, such as monero.


I don't think it is going to be shut down in western countries, and it isn't like fiat currencies because there is a finite amount of it. A central bank can't print more of it to boost consumer and business spending in times of recession. That is the main reason why I think it is here to stay. You are right in saying that it is too volatile to be used as a medium of exchange at the moment, but it is mellowing out and give it 5 years and it will be much more stable. The same goes for any emerging market.
gold can actually be used for something though. Plus that is the point in using bitcoin to pay for stuff, we have real money for that which is just as fake. Many countries pegged their currency to the dollar in the Breton woods agreement which was in turn pegged to gold and then the US under Nixon got rid of the gold standard making money theoretical. Money only exists because of the fact you need to pay it back. By enforcing tax that needs to be paid back in real currency, the value is guaranteed. These are the two ways of making a currency. It's no coincidence that the year the federal reserve started, so did federal income tax. Bitcoin has no such mechanism to give it value despite it's finite amount and therefore is a fiat currency that will never be stable
 

Sprint0205

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gold can actually be used for something though. Plus that is the point in using bitcoin to pay for stuff, we have real money for that which is just as fake. Many countries pegged their currency to the dollar in the Breton woods agreement which was in turn pegged to gold and then the US under Nixon got rid of the gold standard making money theoretical. Money only exists because of the fact you need to pay it back. By enforcing tax that needs to be paid back in real currency, the value is guaranteed. These are the two ways of making a currency. It's no coincidence that the year the federal reserve started, so did federal income tax. Bitcoin has no such mechanism to give it value despite it's finite amount and therefore is a fiat currency that will never be stable
As with any currency, It only has value because people perceive it to have value. If people thought the USD was worthless, it would be, no matter what the federal reserve said. In my mind, Bitcoin will be more stable in the long run (talking 20 years + down the line) as a central bank can't just create more of it when it sees fit. The volatility won't last forever, as you can see for yourself it has become a lot less volatile in just the last 5 years. A currency will survive in the long term if businesses accept it as a form of payment. This is happening more and more now with bitcoin.
 

Murk

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Bitcoin requires a massive amount of research to understand. How it’s made, how it was invented, why it was invented, how the protocol runs etc.

Anyone concerned about the energy use should read the article from Nic Carter: The Last Word on Bitcoins Energy Consumption.

Even understanding Bitcoin is dipping your toes only an inch into the blockchain space. The technology is as industry shaking as the internet was, so the investment opportunities in crypto I think deserve a little more time and respect outside of ‘very volatile, be careful’. The volatility can be intimidating for a newcomer, but doing your own research pays dividends in all areas of investing.

There are some amazing projects out there doing some real work for less fortunate people. Even if you’re not interested in investing it’s great to learn about.
 
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