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MrXxx

The Library

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Hi Folks,

Seeing people recommend books on this section and the other about finance/investing...and then seeing them get `lost` in a `sea` of replies, I thought I would start this thread.

I have two recent reads:~

Saving and investing for retirement by Yoram Lustig (isbn 978_1_292_12929_A good introduction to active investment).

 

Investing demystifyed by Lars Kroijer (isbn 978_1_292_15612_5). Very repetitive on what is a simple passive investment approach. Read introduction and appendices, and forget about the rest inbetween!

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24 minutes ago, MrXxx said:

Hi Folks,

Seeing people recommend books on this section and the other about finance/investing...and then seeing them get `lost` in a `sea` of replies, I thought I would start this thread.

I have two recent reads:~

Saving and investing for retirement by Yoram Lustig (isbn 978_1_292_12929_A good introduction to active investment).

 

Investing demystifyed by Lars Kroijer (isbn 978_1_292_15612_5). Very repetitive on what is a simple passive investment approach. Read introduction and appendices, and forget about the rest inbetween!

I second that on Investing Demystifyed. Really you can ignore the book and go directly to his youtube channel, unless of course you enjoy reading more :D.

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I am looking for books aimed at forex. Forex seems difficult to me so I am naturally most interested in it. From what I have garnered the forex dynamic is small traders providing liquidity to big banks. Big banks eat most traders. Don't swim in the shoal with the other traders or the big banks will eat you. And secondly, it is very trend based with MACD indicators, and indicators-of-indicators being very strong.

Am yet to test any of this out yet as I haven't got a clear and defined algo, nor do I even know the what the full structure of a workable trading algo looks like! I only know that you need one ATR for risk, one for entry; one for confirmation; one for exit. From the crumbs I have picked up there are more, but I haven't worked these out yet. 

Working 9-5 is dull. Having the weekends off is crap when all the markets are bloody closed! How will I ever learn?

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You need to find a book written by someone who's made a fortune in forex. The only person I might know is PT Jones - but he hasn't written a book yet. I don't recommend going into forex if you are new to trading as you could lose a lot of money in short order.

I don't have much experience in Forex personally only dabbled. It is most likely you'll be using a spreadbet company, and all these forex markets need margin.

IG index has a demo account and you can play with £10K (refillable) with main forex pairs. I don't think many people/punters make consistent money as you also have a time factor to play against. With a daily funded bet you'll be paying interest each day that you're in the money - so if you are direction-ally correct you'd better have time on your side. Future contract e.g. February GBP/USD maybe better as there is no interest pay, but your directional bet needs to play out before the end of that contract.

You could pay for a workshop course - this could be a couple of grand though.

The Market Sniper runs courses, he maybe worth a look (not done any of his courses, so not able to recommend). He has a youtube channel and does talk about forex https://www.youtube.com/user/TheMarketSniper/videos

Edited by 201p

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22 hours ago, 201p said:

You need to find a book written by someone who's made a fortune in forex. The only person I might know is PT Jones - but he hasn't written a book yet. I don't recommend going into forex if you are new to trading as you could lose a lot of money in short order.

I don't have much experience in Forex personally only dabbled. It is most likely you'll be using a spreadbet company, and all these forex markets need margin.

IG index has a demo account and you can play with £10K (refillable) with main forex pairs. I don't think many people/punters make consistent money as you also have a time factor to play against. With a daily funded bet you'll be paying interest each day that you're in the money - so if you are direction-ally correct you'd better have time on your side. Future contract e.g. February GBP/USD maybe better as there is no interest pay, but your directional bet needs to play out before the end of that contract. 

You could pay for a workshop course - this could be a couple of grand though.

The Market Sniper runs courses, he maybe worth a look (not done any of his courses, so not able to recommend). He has a youtube channel and does talk about forex https://www.youtube.com/user/TheMarketSniper/videos

Yeah, I signed up with IG and have placed 3 bets with them so far. I have noticed that they require a decent sized margin!

I have found a guy on youtube who appears to be cogent. He trades 28 pairs and tends to run his bets over several days, if not weeks. That sounds like my style. Scalping is probably just something for a bit of fun and not something I would attempt without significant experience in correctly analysing price action. From what this credible source tells me, I think the key to Forex is rigorous and extensive backtesting of combinations of indicators, along with the obvious risk management and discipline.

I have bought your Turtle book, another about one guy's system based on fractals and yet another about MT4 and 5 systems in general. Other than that there are a few reassuringly expensive ones that I have my eye on

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The Library, not just books..check out the Pension Craft videos on YouTube as they explain the basics really well (www.youtube.com/channel/UC9OIwUcx-Uss7xj7s1P5XGw)

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Posted (edited)

I have from time to time got books from the library. The worst imo is the biggest seller the Rich Dad series. The whole thing is spoken in riddles and mystique. It obviously struck a chord with the book buying public, could I glean a single gem of knowledge...nope.

Edited by crashmonitor

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Posted (edited)

^ Good mention! I think the Rich Dad series has a purpose - it is a real dummies starter gateway into the world of passive income and assets.

---

If you haven't read it:

Basically, when you go to work, you trade your time for money. For 90% of the population, you will never get rich that way, as you only have one pair of hands to do work and only so much time in one day.

BUT with assets that produce a yield/income/cash flow each month, such as BTL, Dividends, Royalties, these are extra pairs of hands that earn money while you sleep.

As you build your asset base (or add pairs of hands to your work effort), at some point your passive income pays for all your expenses and you can quit the day job. You don't have to wait to retire at 68.... or 70 or never for some people.

Edited by 201p

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Posted (edited)
18 hours ago, 201p said:

^ Good mention! I think the Rich Dad series has a purpose - it is a real dummies starter gateway into the world of passive income and assets.

---

If you haven't read it:

Basically, when you go to work, you trade your time for money. For 90% of the population, you will never get rich that way, as you only have one pair of hands to do work and only so much time in one day.

BUT with assets that produce a yield/income/cash flow each month, such as BTL, Dividends, Royalties, these are extra pairs of hands that earn money while you sleep.

As you build your asset base (or add pairs of hands to your work effort), at some point your passive income pays for all your expenses and you can quit the day job. You don't have to wait to retire at 68.... or 70 or never for some people.

I've not read the book but watched a small snippet a while ago of the author and iirc the chap was talking about how it was his dad's friend that brought him under his wing and showed him the ropes. The change in mindset for most is impossible, even if they wanted to they would never be able switch. We've spoken very little of our strive for FI with friends. The one couple we did we got immeidate pushback so we nipped that in the bud.

I watched this video today (bit of a longy so don't expect people to watch) but kind of talks about the negative mindset of others especially when it comes to getting on in life, starting enterprises/businesses and investing for the future.

 

Edited by A_P

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Just finished reading `The Art of Execution` by Freeman-Shor...basically covers his experiences managing a team of investors and the fatal mistakes most make when trading, even the Pro`s.

Anyone else read this?..thoughts?..

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Posted (edited)
On 25/06/2019 at 16:05, MrXxx said:

Just finished reading `The Art of Execution` by Freeman-Shor...basically covers his experiences managing a team of investors and the fatal mistakes most make when trading, even the Pro`s.

Anyone else read this?..thoughts?..

Bought the book because i saw you mention it in the deflation thread

A good book read it all today, it has certainly made me think about a few of my investments where i sold and maybe took profits to early but also in some that are down am i going buy more or cut the losses, instead of sitting there doing nothing

One thing that i do want to finish creating is a set of rules for investing and stick to them, i do it with work (Advertising) for example we buy ads which appear on many sites and we track the performance and websites get block or bids increased depending on a set of rules, if we didn't do this 99% of the time we lose money 

Work currently has taken a back seat though as i want to get more involved in investing

 

Also checking the prices constantly had this issue with work before setting rules where i would sit there refreshing the page to see if we had new sales 

Setting up alerts and trying to ignore most of the noise is something i need to do more off

Edited by DoINeedOne

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Also in regards to selling in that book it talked about clipping winners (taking some profit)

but didn't talk much about the percentages they took so a rule for that would need to be decided

 

For every X % it goes up clip X %

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11 hours ago, DoINeedOne said:

Also in regards to selling in that book it talked about clipping winners (taking some profit)

but didn't talk much about the percentages they took so a rule for that would need to be decided

 

For every X % it goes up clip X %

Yes, that was my criticism, told you what but not how...got me thinking thought about active vs passive investing...the problem is, the more I read, the more I get confused/overwhelmed by jumping into the investing pool!

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10 minutes ago, MrXxx said:

Yes, that was my criticism, told you what but not how...got me thinking thought about active vs passive investing...the problem is, the more I read, the more I get confused/overwhelmed by jumping into the investing pool!

So where are you now with the active vs passive? Additionally by this comment are you saying you're not actually invested (outside of workplace pensions) ?

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1 hour ago, MrXxx said:

Yes, that was my criticism, told you what but not how...got me thinking thought about active vs passive investing...the problem is, the more I read, the more I get confused/overwhelmed by jumping into the investing pool!

Rushed this so maths may be wrong but just as a idea

For every 10% increase if we sold 5% on a very basic example of 1000 shares for £1 then 

1527722872_2019-06-2809_42_16am.png.1c40569818e4275774037611ef4dfaf5.png

So again just an example if we never sold any shares the 1000 shares at rose to £2.59 and would now be worth £2,590

But selling 5% every time the price rose 10% we took £674 and still have 597 shares worth £1547.65

which if we sold at £2.59 plus our previous profit taken would mean we have £2,221.65 whilst not much less you have the advantage of skimming a little bit of profit whilst still holding

 

Maybe I'm completely wrong with the above please correct me if i am 

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32 minutes ago, DoINeedOne said:

Rushed this so maths may be wrong but just as a idea

For every 10% increase if we sold 5% on a very basic example of 1000 shares for £1 then 

1527722872_2019-06-2809_42_16am.png.1c40569818e4275774037611ef4dfaf5.png

So again just an example if we never sold any shares the 1000 shares at rose to £2.59 and would now be worth £2,590

But selling 5% every time the price rose 10% we took £674 and still have 597 shares worth £1547.65

which if we sold at £2.59 plus our previous profit taken would mean we have £2,221.65 whilst not much less you have the advantage of skimming a little bit of profit whilst still holding

 

Maybe I'm completely wrong with the above please correct me if i am 

Don't forget your trading costs, @ £10 a trade that's a decent chunk. Using a provider like freetrade will help in this kind of instance though

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Posted (edited)

Actually some of the above maths was wrong i needed to round off the numbers but yes charges not included and at a basic £1000 investment

 

What if we bought 10,000 shares at £1

2019-06-28 11.11.56 am.png

 

Edited by DoINeedOne

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10 hours ago, A_P said:

So where are you now with the active vs passive? Additionally by this comment are you saying you're not actually invested (outside of workplace pensions) ?

I think for most, in the same way that you allocated between stocks/bonds, you have to do the same with active/passive. For those with some experience (or prepared to spend time/money getting it) then the active is DIY, for those without an active funds with the higher running costs to (hopefully) gain the alpha.

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7 minutes ago, MrXxx said:

I think for most, in the same way that you allocated between stocks/bonds, you have to do the same with active/passive. For those with some experience (or prepared to spend time/money getting it) then the active is DIY, for those without an active funds with the higher running costs to (hopefully) gain the alpha.

Looks to me you're overcomplicating it, in part perhaps to avoid the question but does go some way to explain the previous post. Anyway not to worry (or to derail the thread) was just interested as from previous posts thought you were a passive investor

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