Stock Market Investment Course (Srs)
[INDENT]Does anybody recommend a course on how to buy financial instruments and turn a profit? I am looking to trade part time.
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Original post by arson_fire
Not wishing to be negative, but what makes you think you can get the edge on city-boys with their large network of contacts and their computing horsepower? What info do you have that they don`t?
Just want to make 20% on capital, nothing extraordinary.
Original post by Joyful_soul
Just want to make 20% on capital, nothing extraordinary.
This comment alone shows you are very unlikely to succeed.
Original post by M1011
This comment alone shows you are very unlikely to succeed.
Can you explain why?
Original post by Joyful_soul
Can you explain why?
Common sense.
OP, 20% gain is wildly optimistic in the current market and would be extraordinary even in the good times. Most traders are just arrogant jocks who want to be worshipped for getting 2% minus fees ROC on a bond fund investing in a series of bonds yielding 2%. They just make big profits because they deal with a lot of cash (it's not hard to make £20m in a year if you have £1bn to invest). These types work long hours churning (that's a technical term, go look it up) to create more revenue.
However, people shouldn't be making fun of you on here, because you've admitted that your new to this and want to go on a course. I would generally recommend something quite basic if you only plan to invest in low risk, run of the mill things (and 95% of your capital generally should be invested in this kind of stuff unless you have a lot of capital and can afford to lose more than 5%). Maybe even something as basic as getting an introductory book, something you can find on Amazon with a decent rating.
If on the other hand you want to get a little more sophisticated, then you can't go wrong with the Chartered Institute of Securities & Investment's Investment Operations Certificate or if you want to trade for other people then their Investment Advice Diploma. The Investment Management Certificate from CFA UK is another alternative you might choose, or you could take a look at the Chartered Insurance Institute's suite of financial qualifications.
As for you, you definitely shouldn't be allowed anywhere near an investment bank with this attitude. You're basically endorsing insider trading. TWICE. Be more careful with your language!
However, people shouldn't be making fun of you on here, because you've admitted that your new to this and want to go on a course. I would generally recommend something quite basic if you only plan to invest in low risk, run of the mill things (and 95% of your capital generally should be invested in this kind of stuff unless you have a lot of capital and can afford to lose more than 5%). Maybe even something as basic as getting an introductory book, something you can find on Amazon with a decent rating.
If on the other hand you want to get a little more sophisticated, then you can't go wrong with the Chartered Institute of Securities & Investment's Investment Operations Certificate or if you want to trade for other people then their Investment Advice Diploma. The Investment Management Certificate from CFA UK is another alternative you might choose, or you could take a look at the Chartered Insurance Institute's suite of financial qualifications.
Original post by arson_fire
Not wishing to be negative, but what makes you think you can get the edge on city-boys with their large network of contacts and their computing horsepower? What info do you have that they don`t?
As for you, you definitely shouldn't be allowed anywhere near an investment bank with this attitude. You're basically endorsing insider trading. TWICE. Be more careful with your language!
Original post by Joyful_soul
Can you explain why?
Just check the 5 year average return of any benchmark index, FTSE 100, S&P 500, whatever. Nowhere near 20%. Now, consider that these benchmarks beat the majority of hedge funds and other various professional investment vehicles consistently over a medium to long term period. You can probably get lucky and make much more than 20% in one day. Over 5 years or even 1 year? Good luck to you.
Actually, they shouldn't have access to information that the average punter doesn't. That's the whole point of transparent markets. The difference between a trader in a bank and the man on the street is a combination of three things:
1) Economies of scale mean they can more easily afford tools that condense the data into a more approachable format (Reuter's, Bloomberg etc);
2) Teams can do more research on an investment than an individual;
3) They tend to be trained by experts and therefore have a better idea of what they are doing and how to interpret financial information.
However, if the man on the street is smart enough, focuses on a small enough area of the market and has the means to buy a Bloomberg terminal, then in theory at least the 'big boys' should have no advantage. If they do, then that's an example of market failure or market abuse, depending on what their advantage is!
1) Economies of scale mean they can more easily afford tools that condense the data into a more approachable format (Reuter's, Bloomberg etc);
2) Teams can do more research on an investment than an individual;
3) They tend to be trained by experts and therefore have a better idea of what they are doing and how to interpret financial information.
However, if the man on the street is smart enough, focuses on a small enough area of the market and has the means to buy a Bloomberg terminal, then in theory at least the 'big boys' should have no advantage. If they do, then that's an example of market failure or market abuse, depending on what their advantage is!
Original post by arson_fire
OK maybe not the best way to phrase it, but my point was that when someone like GS releases an analyst opinion on the Acme Widget co its going to be spread fairly quickly. Someone in the city would get it straight away and be able to react to it immediately. Joe Punter is unlikely to even know about the opinion till he reads about it on a forum that evening after work by which point any advantage is gone.
In theory you could compete, but it would be a fulltime job and would probably take years to get enough experience to actually make more than a tracker fund or high yield bonds would.
In theory you could compete, but it would be a fulltime job and would probably take years to get enough experience to actually make more than a tracker fund or high yield bonds would.
I agree that far, the only difference I would make is that the average punter is competing against a computer rather than an analyst. Analysts can't respond as quickly as computers these days and the advantage is already gone before a human can respond!
High frequency trading is under regulatory scrutiny right now as a result.
Oh, something to add to that. The average punter should not be trading in the same way as a firm. Due to minimum trading costs and commissions, someone with a few thousand pounds will quickly lose all their money on trading fees if they constantly buy and sell all day (although costs are coming down). Investment really should be for the long term.
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