If you have not read my materials about the dividend and income strategy, then I recommend starting with them - and
A typical dialogue with a friend who is thinking about investing:
Buddy: Hello, tell me where to invest money.
I: Cache everything. Put cash on deposit at the bank. Don't touch this money. Dedicate the next six months to studying investments. Watch webinars, read books, listen to podcasts, and more.
Buddy: Ouch. Well, no. I don't have time for this. Let me give you money to manage.
What can I advise such people? Take some time (just a little) to learn a passive investment strategy. Any other methods will most likely lead you to losses.
Sergey Spirin pleased with a very interesting post. However, I don't really agree with the conclusions. Still, diversification is good, but buying a stock just because of diversification is not worth it. Diversification is foolproof.
There were good 14 years - now stocks have a discount - but not as crazy as in 1999, and then no one could dream about oil at $ 100 per barrel, 20 - it was already super ...)))
An instructive story that can be repeated in 14 years - about the results of investing in the 10 most liquid stocks of 2013.
Invest in stocks!!! Successful investment!!!
And one more thing - dividends are not taken into account here - after all, for 14 years there were quite a few of them ...)
Original taken from financial training in Sergei Spirin,
S.S.:
I never tire of wondering how Robert Kiyosaki manages to “guess” the release of his new articles right in time for our webinars. :) For which my many thanks to him!
The latest article strongly resonates with what I am going to talk about at the webinar “Investments. Basic course" in the next two weeks. But already, of course, in details and at a deeper level.
Understanding...and mastering the game of investing
When I was a kid, my best friend Mike, my rich dad's son, took up golf and investing. Both of these games were, in a sense, difficult to master, and both required an understanding of the rules of the game.
Fifteen years later, when we were both twenty-five years old, Mike became an expert in both golf and investing. I just started learning the rules.
I brought this up because, whether you're young or old, learning the basics is important. Most people take some form of golf lesson to learn the rules before they start playing. But, unfortunately, most people are never interested in the simple rules of investing before they start investing their hard-earned money.
Below are the 6 basic investment rules my rich dad taught me:
Ground rule #1:
Know what income you are working for
Most people only think about making money. They do not understand that there are different kinds of money for which they work. For years, rich dad had drummed into Mike and me that there were three types of income:
Ground rule #2:
Convert ordinary income into passive income
Most people start their lives earning a normal working income as an employee. The path to wealth creation begins with understanding that there are other types of income, and then converting earned income into other types of income in the most efficient way possible.
To illustrate this, rich dad drew a simple diagram:
“That, in a nutshell,” said rich dad, “is everything an investor has to do. That's the main thing he needs."
Ground rule #3:
An investor can be either an asset or a liability
Like us, many people consider investments to be risky. In reality, however, the risk lies with the investor. An investor can be either an asset or a liability.
“I have seen investors lose money where everyone else is making money,” said rich dad. “Actually, a good investor likes to follow a risky investor, because that way you can find worthwhile investment deals!”
Ground rule #4:
Be ready!
Most people try to predict what will happen and when. But a true investor is ready for anything, no matter what happens. “If you do not have training in the form of education, experience, or additional Money good opportunity will pass you by,” said rich dad.
Rich dad kept saying that it’s more important not to predict what will happen, but instead to focus on keeping your eyes open, seeing what’s happening, and responding to opportunities. This is achieved through constant learning and exercise.
Ground rule #5:
Good deals attract money
One of my biggest concerns as a new investor was how to find the money if I found a good deal. Rich dad reminded me that my job was to focus on the opportunities in front of me so I could be ready.
“If you are ready, which means you are educated and experienced,” said rich dad, “and you find a good deal, then the money will find you, or you will find the money.”
Rich dad's point of view was that money was the easiest thing to get. Much harder to find worthwhile deals than to raise money. That is why many people are willing to give their money to an investor.
Ground rule #6:
Learn to evaluate risk and reward
To be a successful investor, you must learn to value risk and reward. Rich dad used the example of his nephew with the idea of a hamburger stand.
“If you have a nephew with a hamburger stand idea and he needs $25,000, could that be a good investment?”
"No" - I answered. "Too many risks and too little reward."
“Very well,” said rich dad. “But what if I told you that this nephew has worked for a major fast food chain for the last 15 years, was VP of all important aspects of the business, and is ready to start his own business and build a worldwide fast food chain? And what if you could buy a 5% stake in a company for just $25,000? Could this be of interest?
"Yes," I said. "Definitely, as there is more reward for the same amount of risk"
Learning and mastering the rules of investment requires a long-term investment in financial education. But these basics will get you started. How high you can climb is up to you.
Sergey Spirin's blog: Investor Notes:: O_O Tired of staring at the monitor and waking up at night in a cold sweat? Stop speculating, start investing! Blog of Sergey Spirin | fintraining.livejournal.com
A small but necessary preface to the answers
Before you read my answers to the questions, I need to clarify that trading is neither my main occupation nor my main source of income. I am an investor, an entrepreneur, a consultant, a teacher, a writer and many others, and only after that I am a trader, and even then only in the sense that I sometimes conduct operations with securities on the stock exchange. And although technically I am still a trader, I am afraid that the majority of the survey participants understand trading as completely different from what I do.
However, I think that the investor's view of the trading community may also be of interest.
Sergey Spirin
Part 1 YOUR STORY
2. What city do you live in?
Moscow
3. What is your education: secondary, special, higher?
Higher. Or rather, two higher ones, the first, basic - technical, the second, additional - economic
4. What was your first specialty with which you entered the market?
What I was doing when I first entered the market valuable papers? Worked in banks. At that time, my specialty had nothing to do with the market; in banks, I was the manager of networks of branches and branches. He entered the market not on behalf of a bank, but as a private investor.
5. How many years have you been in the market? What is your experience as a trader?
If we consider my early and not very successful experiments with GKOs, then since 1998. If by market we mean the stock market, then somewhere since 2003.
6. Are you an independent or corporate trader?
I am an independent private investor.
7. How many jobs have you changed as a trader, manager, boss?
My work has never been directly related to trading. At first he worked in banks, five years ago he went into independent business. In parallel with these studies, he sometimes conducted operations in the market.
8. How and when did you first become interested in stock trading?
At the institute, somewhere in 1993, when I received economic Education, and read the book by L. Angel, B. Boyd "How to buy shares."
9. What was the primary reason for your entry into the market?
Curiosity, interest, desire to receive additional income from investments.
10. What did you know about trading, except that it is a very profitable business?
I was a little familiar with the work of traders in the dealing departments of banks. But, in general, the presentation was vague.
11. Did you understand what you were doing? Have you read anything before about the stock market, stocks, futures, bonds, risks, strategies?
I read it, but mostly it was pop, like the aforementioned book How to Buy Stocks? Or Kiyosaki's books.
12. Did you know the size of the contracts? Lots? Did you know the fees?
I was interested in these questions before climbing into the market. I'm not sure that I understood everything correctly, but I tried to understand.
13. Have you used stops when closing bad positions?
When losing what money? 100, 300, 500, 1000 dollars (rubles)?
With the loss of what part in% of the account? 1, 2, 5, 10, 25.50?
At the beginning of the journey, when I was still dabbled in speculation, I used stops, but I did not put them systematically, but “according to technical analysis”, in the area of \u200b\u200bsupport / resistance levels. Now I understand that this is not the best idea, but I have no desire to test other speculative strategies. For the last few years I have not set stops, my investment strategies do not involve the use of this tool.
14. Did you trade with your own money or someone else's money at the beginning of your trading activity?
Exclusively on their own.
15. How much did you start with as a private trader?
I do not remember exactly. Somewhere around 50-100 thousand rubles he allocated for himself to experiment with securities.
16. How much money did you receive investment company for trade?
None, except for the standard "shoulders".
17. What trades do you remember as the most dramatic or exciting?
As Paul Samuelson said, real investment should be about as exciting and exciting as watching grass grow or paint dry. That's about the same for me.
18. What was the best year?
From the point of view of increasing the account on the securities market, apparently, 2005-2006. However, the saying “do not confuse a bull market with genius” is known to me, and I perfectly understand that genius has nothing to do with it.
19. When did you get your first tangible big win? What was he like?
I have never treated investments as a game, so if we talk specifically about “winning”, then probably never. From 2004-2005, I began to receive a stable income from investments, but this income has nothing to do with the word “winning”.
20. What is your average annual income in %?
It happens very differently.
21. What was your worst year?
If we talk about rather large losses, which were unexpected for me, then, perhaps, 1998, losses in the GKO market. Drawdowns still occur, but now I see them as part of the system, as opportunities for bargains.
22. What was the size (in dollars or %) of your most losing trade?
Losses in the GKO market amounted to approximately 50-60% of the amount invested in this instrument (if we take the dollar value of capital as a basis) due to the devaluation of the ruble during the “frozen” trading in GKOs.
23. How long did you not trade after it?
Some years.
24. Why did you not leave the market, but continued to trade on it like a professional?
I returned to a completely different market, with a completely different level of understanding.
25. What was the longest and largest drawdown in your account?
I find it difficult to answer. I do not remember.
26. Do you think that your sudden losses are the result of some changes in the markets?
AT last years there were no sudden losses. There have been drawdowns that are part of the system, to which neither the word "sudden" nor the word "loss" is applicable.
27. How did you survive the crisis of 1998, 2008?
I wrote about 1998 above. However, at that time I was more focused on work than on investments. The year 2008, thanks to a balanced investment portfolio, went well.
28. Do you have any goals for today outside of trading, purely in life?
There are goals within business, personal development, etc.
29. Where do you see yourself in ten or twenty years - still a trader?
I am still not a trader. And in ten or twenty years, I'm unlikely to become one.
30. Do you feel the same pleasure from trading if you do it thirteen hours a day?
Thirteen hours I have and in a year is unlikely to be typed.
31. Is there a practical limit to the amount of capital you can manage?
I find it difficult to answer. I don't think there is such a limit.
32. If you have enough personal funds, then why don't you trade on their basis? After all, then you will avoid all the worries associated with managing other people's funds?
I trade exclusively with personal funds.
33. Why is it necessary to manage other people's capital at all? After all, everything you need, you can get from yours?
Foreign capital is a "shoulder", "lever". Time is money. Using other people's money you win your time. However, for me this is still more of a theory, I repeat, while I manage exclusively my money.
34. Do you have any additional income other than trading income? Maybe it's bonuses, business, teaching, publications?
There is. Business, investment income (not related to trading), teaching and consulting activities, publications.
35. Do you invest some of the money you earn from trading in real assets or accumulate in a brokerage account?
Trading is not the source of my income. Investing in the securities market is just one of the investment tools, among many others.
36. For example, have you bought real estate? Good luck?
Bought. Good luck.
37. Or everything that is done outside the market does not generate income, like the market?
I have many different sources of income. The market is just one of them.
38. What are you currently doing?
I am answering the questions. At the same time, I am preparing to conduct my first paid webinar on portfolio investment.
39. What projects are you running now?
The main project is the Center for Financial Education, http://fintraining.ru
Part 2: YOUR PERSONALITY
41. Don't you think that outstanding traders have a special gift?
If a lot of people play sportsloto, then one of them wins. Does he have a special gift? I doubt.
42. What is the share of talent and labor in trading success?
I think the proportion of both is low. For a player, luck will be more important, and for an investor, adequate understanding of the market and readiness for action will be more important.
43. What trading qualities are most important for an employer (fund)?
The ability to competently and effectively promote their activities, give interviews to the media, shine on TV, be part of the party. It is this (and not trading itself) that brings the main profit to the employer (fund).
44. Has it ever occurred to you that maybe exchange trading Is it none of your business?
I've been thinking about this for a very long time. For me, stock trading is a very secondary occupation.
45. Don't you feel overworked as a trader?
No. For the small number of hours a year that I devote to the market, it is very difficult to overwork.
46. Very few traders are known to be as lucky as you. What do you think sets you apart from the rest?
Could it be that I don't consider my successes to be due to "luck"?
47. Are you worried about big losses?
Unplanned losses - yes. Losses that are part of the system are not.
48. How do you deal with emotional stress when you hit a losing streak?
Emotional health is part of physical health. Therefore, I try to take care of my health: I take a steam bath in the bathhouse, I spend more time in nature.
49. Do you care about big wins?
Not too much. It is, of course, pleasant, but nothing more.
50. What gives you persistence in the market: intuition, courage, a systematic approach?
Systematic approach and adequate understanding of market realities.
Part 3: YOUR VIEW ON THE MARKET
52. What did they become?
There are more teapots.
53. Do you feel that the markets have become smarter, more difficult to trade on them, or is everything determined not by the experience of the participants, but by external market factors?
I don't think the markets have gotten smarter.
54. Have you felt an increase in the share of robots in the markets?
In my opinion, the appearance of robots increases the overall "stupidity" of the market. However, it will manifest itself especially brightly not in ordinary auctions, but at critical moments.
55. Do you feel when big money starts to come into the market or leave them? How does this manifest itself in your opinion?
Coming big money leads to the growth of the market, the departure of big money - to the fall. There are many factors, both in the market and outside of it, that allow you to feel this.
56. Do you think the markets are more prone to false breakouts today? Does this mean that trend-following systems are doomed to mediocre results?
Systems focused on the global growth trend stock market in the long run, doomed to good results. Systems that try to predict "stock market noise" are doomed to mediocre results, which in most cases will turn out to be negative.
57. Don't you think that the markets have changed in the last five to ten years due to the fact that professional money managers now have a much larger share of speculative trading compared to small speculators, who usually make every conceivable mistake?
I find it difficult to answer.
58. What markets have the strongest influence on the Russian market, and when is this influence most noticeable?
In the medium term - the oil market.
59. How similar is the behavior of different markets? Are the price patterns of the stock market and the bond market similar, or do they have a certain individuality?
They have a certain personality.
60. Do you think the models of different markets are similar or not?
See the answer to the next question.
61. Do you think that the stock market is different from other markets? Or does it behave in the same way as other markets?
The main (to me) difference of the stock market (and, to a lesser extent, the bond market) is that in the long run it is checkmate. expectation of returns HIGHER than inflation. Mat. the expectation of profitability of commodity markets is approximately AT THE LEVEL of inflation. Mat. Forex profitability expectation is zero or BELOW inflation. All other differences are not so fundamental.
62. Technical information on commodity markets is limited mainly to price, volume and open interest indicators. And for stock indices, it is much more: these are growth / decline ratios, various psychological indicators, ratios of various groups of stocks, and so on. Does this mean that conventional trend-following systems are initially at a disadvantage because they do not use enough information?
For me, none of this matters.
63. Is the stock market different from commodity markets?
Yes.
64. What is the biggest public misconception about the market?
That it can be predictable in the short term.
65. What new trends, in your opinion, as a long-time expert on the markets, await our economy in the near future?
I am not a soothsayer or an analyst. Economics is a derivative of politics, and it has recently inspired me with serious concerns. But everything can change.
66. What markets are you really having trouble with because of insufficient liquidity?
The absence of a normal liquid market for precious metals leads to large losses on commissions and spreads.
67. What positions can be safely operated without creating problems in low-liquidity and highly liquid markets?
Don't know.
68. How can market liquidity be assessed before and after the crisis? By what percentage did the turnover drop?
Don't know.
69. Can you trade markets that don't have high liquidity but strong trends?
Yes.
70. What happens when you place orders in markets that are not among the most liquid? Have you noticed that these orders really move the market?
Yes, I noticed. Moreover, he himself somehow had a chance to "move" the illiquid stock market of Kazakhstan.
71. You often hear stories of very big traders trying to push the market up or down. Do they succeed?
I think yes. As I wrote above, I happened to "move" the market, even when I was a very small investor.
Part 4: YOUR SUCCESSFUL STRATEGIES AND TACTICS
73. Are you a trader:
one market: Russia, America?
one asset class: stocks, bonds, futures?
one asset: RTS index, oil, Gazprom?
one strategy: arbitrage, spreads, speculation?
No. I try to take advantage of broad diversification.
74. Are your assets diversified or concentrated in one instrument, market, strategy?
Diversified.
75. Are your currencies diversified, or is your destiny only the ruble? just a dollar? only euro?
Diversified.
76. Do you trade intraday or higher timeframes: day, week, month?
More like years.
77. What is the average frequency of your transactions: every 15 minutes, every hour, several hours, every day, several days…?
No more than a few surgeries per year.
78. What trades do you have more in terms of frequency: profitable or unprofitable?
Much more profitable. If you enter a position for several years, then it is not so difficult.
79. What do you like to trade more: short-term price swings, multi-day trends, mid-term monthly trends, long quarterly (annual) trends?
Even longer trends.
80. Have you ever traded around the clock, or are you limited to a strict trading session?
Neither one nor the other.
81. Do you trade the evening session on FORTS?
No.
82. What trading rules do you keep?
Before carrying out any operation, I try to clearly articulate to myself why and why I carry it out.
83. How do you feel about the inevitable gaps Russian market because of the time difference with America.
Indifferently, without the slightest interest in them.
84. What do you do with a strong market growth:
Close positions, open them, wait until the market reaches the top and calms down?
85. What do you do when the market drops badly:
Close positions, open them, wait for the market to fall to the bottom and calm down?
86. What do you do in a weak low volatility sideways market:
Trading, not trading, preparing for a strong move?
87. What do you do in a strong, highly volatile sideways market:
Trading, not trading, waiting for the market to calm down to enter the game?
88. How do you act in a situation where the market is growing, and you did not have time to buy cheap?
89. How do you act in a situation where the market is falling, and you did not have time to sell high?
(84 - 89) My decisions are determined by other factors.
90. What do you do in case of your psychological crisis caused by strong market movements AGAINST you?
I remind myself that I'm in the market for the long haul, and I don't have to worry about short-term fluctuations.
91. Do you always set yourself the level at which you will exit a trade before entering it?
No. No price level on its own will force me out of the trade. For this, reasons of a different order are needed.
92. When you give an order to open a position, is it accompanied by an order to exit it?
No.
93. Does it happen that if you opened a position, and then after five minutes you were disappointed in it, then it would never occur to you to worry that it is indecent to close the position right away and that the broker might think that you have lost your mind.
For me, a broker is a function, an automaton for executing orders. Wouldn't it occur to me to worry about what Windows would think of me if I rename files frequently?
94. Have you ever returned to a trade immediately after exiting it?
Only a very, very long time ago, at the stage of my early speculative experiments with the market.
95. Is it worth it to listen to other people's advice and enter into a deal without analyzing it yourself?
Absolutely not.
96. Have you received bad advice from good traders/bosses about entering a trade?
I try not to pay attention to any other people's advice.
97. Do you discuss the markets with other traders? In person, on the forum, in chat?
For information purposes, no. Sometimes I “monitor” the general mood of the players in this way.
98. Is it possible just by looking at the market and not using any analysis to make the right decision about the deal?
I usually make a trade decision without looking at the market.
99. Do you open 100% positions at once, or in parts?
Differently. More often 100%.
100. Do you close 100% of the position at once, or in parts?
Differently. More often 100%.
101. Do you always use fundamental analysis when shaping your trading decisions?
Sometimes I use.
102. Does each of your positions have a certain fundamental basis?
It depends on what is considered the fundamental basis. From the point of view of classical fundamental analysis, no, not every one.
103. Can we say this: with a significant change in the fundamental alignment, the direction of the first market movement often serves good indicator long term trend.
Didn't care for this issue.
104. What role does intuition play in trading?
Negative.
105. How big a role does luck play in trading?
Different people have different ways. I have, I dare say, a small one.
106. What is technical analysis for you: nonsense or rationality?
A theory based on the characteristics of mass psychology. Due to the fact that mass psychology is still poorly understood, the theory is extremely fuzzy.
107. What is rational in it, and what is from black magic?
I do not believe in the existence of black magic, so I believe that nothing.
108. Do you sometimes enter a trade just because a pattern appears on the chart, which, as you know from experience, often precedes a market rise? That is, when you do not have any fundamental reasons for this.
It is better to do this when the fundamental bottoms and the pattern on the chart give the same forecast.
109. Do you usually follow trading range breakouts? If so, what do you do if the breakout is false?
I don't usually follow.
110. What about breakthroughs that happen on the day an article or news item is published?
Likewise.
111. Should I participate in an obscure but strong price movement?
You shouldn't make decisions like this at all.
112. Is it true that with the increased use of trend-following computer systems, the frequency of false technical signals has increased?
I find it difficult to answer.
113. Let's say you bought on a market breakout up from the consolidation zone, and it starts moving against you, that is, back into the corridor. How do you determine when to exit the market? How do you distinguish a small pullback from a misdirected trade?
I don't buy or sell.
114. Sometimes a lot of other market participants use the same stop level, which can pull the market towards it. Does this option bother you?
Doesn't bother.
115. Are you able to use stop orders, or are the position sizes almost impossible to do so and do you manually open or close a position?
Lately I don't use stop orders.
116. Which way of trading do you prefer: limit orders, market orders or stop orders?
According to market orders.
117. What ultimately tells you that your trading is in the wrong direction? The stop order, of course, limits the loss on your first trade. But if you are sure of the fundamental rationale of the chosen direction, then you will take the next trade? However, when the general direction of the market is not determined correctly, losses will come one after another, right? At what point do you admit your mistake?
I don't trade like that.
118. Do you acknowledge the existence of such trend-following systems that can indicate levels where large capitals can be expected to enter the market. Do you use these types of systems to trade any part of the capital you manage?
Not using.
119. Do you think it is possible to create such a trading system that will not yield to a good trader?
In the more or less long term, it is unlikely. Markets are changing.
120. Could you tell us about your method of fundamental analysis? How do you determine what a fair market price should be?
It's hard to explain briefly.
121. Can you trade around the clock? Do you want to do it? How do you divide your time between work and personal life?
No. If someone wants to trade around the clock, he'd better go to a doctor. Perhaps things have already gone too far.
122. In your opinion, is it worth breaking the situation by force if it develops not in your favor?
What is it like?
123. You mentioned two essential elements - risk control and trade confidence. What is the usual risk of your trades?
In 1952, Harry Markowitz told the world that risk should not be assessed at the level of individual transactions, but at the level of the portfolio as a whole. That's exactly what I do. Therefore, the question of risk per individual transaction is usually of little interest to me.
124. If the market rises to the upper limit three times in a row, then at some point it may open at the lower limit. How do you know or feel when you should not go long at the upper limit?
Based on fundamental characteristics.
125. Do you take breaks after a series of losing trades? What duration?
No. I am in position all the time (more precisely, in a large number of positions for different instruments).
126. Do you analyze your mistakes?
Yes.
127. Do you keep a trade diary to record these mistakes?
A trader's diary - no, a journal of income and expenses - yes.
128. What do you do if your trading instinct says one thing and your systems says another?
I trained myself not to trade based on "gut"
129. Do you wait for any signs of a market reversal before making decisions?
No.
130. What about opening a trade against the dominant trend?
Easily.
131. If you make such a trade, that is, buy, when the downside potential is limited, do you go to win or give up at some point?
If the portfolio is well diversified, then “hold until victory”.
132. As a system trader, do you use the system that has best tested against past data, or are you guided by other factors?
First.
133. Does the scale of trade affect its effectiveness? Is it harder to succeed by trading big?
Maybe.
134. Does slippage bother you?
Doesn't interfere at all.
135. How do you come to the conclusion that your large position is wrong? What tells you to close it?
A serious change in external conditions that are not reduced to price.
136. Do you set a maximum acceptable level of risk when you start a trade?
I am interested in the risk of the portfolio as a whole, and not of its individual elements.
137. A trend is easy to identify with a simple system. Do you use any special features for this?
I don't trade short term trends.
138. Do you think we will live to see the day when trend-following systems become inefficient?
I believe that most of them are ineffective now. It’s just that it’s not customary to talk about inefficient systems widely.
139. Will those methods that you used before be able to give the same effect under these conditions?
Yes.
140. I understand that you can't go into too much detail, but doesn't your approach to false breakouts entail moving to shorter-term trading that allows you to react more quickly to such situations?
This is clearly not my question.
141. Do you use long term scenarios economic growth, inflation and the dollar exchange rate, developing your trading decisions?
Partially.
142. Even if you think that the dollar is about to fall, will it still not affect the main schemes of your trading?
It won't affect much.
143. Do you read any analytical newsletters?
No.
144. How do you choose stocks to trade? Are there any formal parameters for their selection?
Undervalued in terms of fundamental indicators. Liquidity. Inclusion in indexes.
145. Do you trade stocks differently than futures? Is the selection process also different?
I don't trade futures.
146. Do you have a preference for any particular types of stocks?
No.
147. Do you prefer fundamental or technical analysis?
Recently, I prefer portfolio investment. So far, there are separate positions opened using fundamental analysis.
148. What fundamental indicators do you track in relation to the stock market?
The most elementary. P/E, balances on corr. accounts, indicators of related markets (oil, precious metals). However, I do not “monitor”, but rather “occasionally look”.
149. What about relative strength [a measure of a given stock's price movement relative to all other stocks].
Do not use
150. What else are you interested in when choosing stocks?
investment ideas
151. Is there much in common in the behavior of different markets? For example, can you trade bonds in the same way as futures on the RTS index?
These markets have little in common.
152. What is the reason for building up a position?
Differently. Sometimes - the presence of free money, sometimes - a price drop, sometimes - a change strategic balance portfolio.
153. What do you do when you hit a losing streak? How do you manage to get out of this bad streak?
I analyze the causes of failure.
154. How and when do you withdraw profits?
This is not a withdrawal of profits, this is a transfer of funds from one instrument to another. I do it rarely, not more than a few times a year.
155. Do you keep a daily record of your balance? Do you schedule it?
I keep records of transactions. I don't make charts.
156. How useful is it? Should traders plot their balance sheets?
Keeping records is helpful.
157. Do you plan profit in advance: For a day, a week, a month, a quarter, a year, 5 years, 10 years?
I plan for the long term, associated with the retirement period.
158. How often do you sum up your work in the market: every day, week, month, quarter, year?
Intermediate results - once a month, detailed - once a year.
159. Does it become more difficult to trade as the account grows? Does it make your trading difficult?
No.
160. Tell us how your work day usually goes? Do you plan things in advance, or does it depend on the circumstances?
I have a very flexible schedule and a lot of free time. Sometimes I have to adapt to external factors, but more often I try to work "in the mood" when there is a good mood for work.
Part 5. YOUR SCHOOL
162. If so, who was your first teacher?
It is difficult to say who was the first. Teachers whom I could recommend are Valery Gaevsky, Konstantin Tsarikhin. But they are advocating a more speculative approach than I myself am currently taking.
163. Who would you like to imitate, who would you like to be like?
I know my weaknesses quite well, so I strive for a more “lazy” style of trading than the great and famous people. Among the people I could recommend for others to follow are Buffett, Bogle, Graham.
164. What specific knowledge should a successful trader have?
There are quite a lot of them to list in the form of a questionnaire. The main thing is an adequate understanding of how markets work. As well as risk management, fundamental analysis, market history, the basics of mass psychology and much more.
165. Do you need special knowledge for successful trading: courses, institute, university?
Desirable.
166. Is experience alone enough for successful work?
Hardly.
167. Are you mostly self-taught, or have other traders taught you something useful?
Basically, self-taught, but I tried to take something useful from all the people I met on my life path.
168. Do you have your students?
Yes. A lot of them. Only the number of distance students (cadets of the Center for Financial Education) has already exceeded one thousand, and there were many more face-to-face seminars, meetings, conferences, etc.
169. Are there any very successful traders among them?
Yes there is.
170. If so, in what proportion do you attribute their achievements to your mentoring and to their own talents?
I gave them basic knowledge. And they have already honed their talent themselves.
171. Is there something that gives out the makings of a good trader in a student?
The desire to get to the bottom of things, to check everything, a systematic approach.
172. Is it possible to learn to trade?
Teaching "play" is very easy, teaching "winning" is difficult.
173. What do you think happens to those who never learn to trade?
Differently. Someone will find the strength to quit this activity, someone will slide into "gamers".
174. If you compare your successful students with a lot of others, can you find any characteristic differences?
Adequacy, a systematic approach, a healthy distrust of generally accepted opinions.
175. What delusions lead to failures in trading?
There are quite a few of them.
176. What advice would you give to new traders?
Seriously think about whether it's worth it.
177. What other mistakes, besides overtrading, do beginners usually make?
The most common are following one's own emotions and exposure to the emotions of the crowd.
178. What else would you advise a beginner?
If it really itchs, then at least limit the amount for trading to a small percentage of the capital, and do not increase this amount until confident success appears and until at least three years have passed. At the training stage (at least 3 years), in no case should you trade with borrowed funds.
179. Is it true that you can take almost anyone enough smart person and turn him into a successful trader?
Known to be false. Everyone cannot be successful traders, someone has to lose money to successful traders, and there will always be a majority of those.
180. Are you afraid to reveal your trade secrets?
No.
181. Are there any trading principles that you could talk about without revealing your secrets?
Yes.
182. What advice would you give to other traders on how to stay calm during periods of trading loss?
study history financial markets, have a system based on long-term historical data.
183. With all your trading experience behind you, from defeat to exceptional success, what would be your first advice:
a beginner trader?
a failed trader?
Think hard about quitting trading and investing.
Sergey Spirin: http://fintraining.livejournal.com
Head of the Center for Financial Education
From our series of notes “In the Footsteps of Rich Dad”: We have repeatedly said that we are currently reading two blogs about investments with interest - these are Sergey Spirin and Oleg Kolchanok.
In April of this year, we signed up for one of Sergei Spirin's webinars. Although it was not very convenient due to the time difference (the webinars were on Moscow time, in Australia they started at one in the morning) and nevertheless, despite the lack of sleep, what was explained to us during the week was very interesting, informative and presented in an accessible and understandable form.
We will try to write our reviews at our leisure, but we can already say with certainty in advance that those who are interested in the same area of investment, as Sergey Spirin writes about, we highly recommend reading it.
So, today we couldn't get past another note by Sergei Spirin. We even decided to “drag” it completely to our website, so that we always had it at hand.
The topic of his article is very interesting. The reader's question is so common and typical, and Sergey's answer is so logical and reasonable that they just couldn't get through, as they say.
We, in our environment, unfortunately, have no one to really talk to about financial investments. The most common among friends and acquaintances is a mortgage. And a car loan. And dear.
And any attempts to develop a discussion about financial independence come down, figuratively speaking, “to buying lottery tickets” and completely denying the existence of any sense in postponing the same 10% of the salary. It is understandable, mother Russia was “shaken” by numerous changes in both politics and financial crises did not bypass her.
People believe more in savings “under the mattress” than in financial investment. And let's not forget about the complete absence financial literacy in this case. Don’t even start talking about “inflation will eat everything…”, please.
We posted this note not so much for discussion (although it would be interesting, but for some reason it seems that it is already predictable ...), but for reflection as such on a given topic.
We all firmly believe that we are still young and energetic and we have to work for another twenty years - we will have enough strength in full, and then there will be a paid mortgage, along with it housing, pensions and children with grandchildren. And all this goodness is enough for our eyes and ears for a full life for us pensioners.
Here, probably, in this situation, it is best to rely on the presence of children who (hopefully) will not leave us in old age with our honestly earned beggarly pension and will definitely give a mug of water.
Under financial independence and we personally understand wealth not as millions in our account and parked yachts near a multi-storey villa, but as a decent pension (created step by step with our many years of investment), no matter how it sausages which state in which we happen to live by that moment. Do you understand?
Your restless Nata and Tyoma
In general, read his article - it is below in full and in italics.
At the end of the article on Sergey's blog, you can see readers' comments on this topic.
For a long time I did not write to the blog and send out educational articles from the series “Investments are good and necessary!”. It seemed to me that for 9 years of the existence of the “Secrets of Investing” mailing list, this idea has already become quite obvious to readers.
However, the letters and comments that came in response to the previous mailing list make me return to this topic.
Today is one of those letters.
Subject: If you want to reap, but if you want - forge ...
Dear Mr. Spirin,
please do not include my name and address Email if you quote my post.
But the last release was amazing. In the style of some Bodo Schaefer, you call for “stupidly putting aside” ten percent of monthly income- and somewhere (it is not very clear where) to invest them, while calculating how much a person will save, receiving ten percent per annum on invested funds. But what about inflation? And why will there always be those ten per annum?
How much is a million really worth? Russian rubles in twenty years? What "lord" knows this?
It seems to me that for a person who receives “a piece of clean bucks” a month, the best “way of investing” would be to purchase Sportloto tickets. In this case, at least some chance he has to ensure old age ...))
What do you think?
S.S.:
If you were more attentive, you might notice that it was not written by me, but by financial consultant Vladimir Savenok.
However, with the main thesis of Vladimir's article, that it is necessary to invest, I agree 100%.
And exactly the same 100% I do not agree with the idea that it is better to buy lottery tickets.
Let's see why.
Of course, inflation has a noticeable effect on the real return on your investment. With inflation officially predicted this year in Russia at the level of 7% - 8% (and possibly even higher), real income from investments with investments under 10%, indeed, will be low.
However, comparing this option with other discussed options, it must be recognized that such a small income is better than nothing. And even more so than the obviously negative result.
Let's compare possible options. I'll rank them in ascending order of preference, from worst to best. From my point of view, which I will justify below.
Option 1. We invest in lottery tickets "Sportloto"
Option 2. We do not invest anything, we spend all the money on current consumption
Option 3. We do not invest anything, we keep money in a stocking, a mattress or a safe
Option 4. We invest money at 10% per annum (for example, on a bank deposit)
Option 5. We invest money in instruments with a yield of more than 10% per annum
Why is the order like this? Let's figure it out.
What are any lotteries in general and "Sportloto" in particular ( Option 1)? This is a kind of gambling. The difference between gambling and investment is that, from a mathematical point of view, lotteries are a negative sum game. Lottery organizers give the participants much less than they collect from them in total. Eventually total income of all lottery participants (except for its organizers) is a negative value. You are simply losing money by giving it to the organizers of the lottery. Therefore, this option is the worst.
By the way, “an independent game on the stock exchange”, as a rule, in fact, is not much different from lotteries and other gambling in terms of the mathematical expectation of the result and your chances of success. The probability of winning for the average stock player is also negative if you are engaged in "playing on the stock exchange" and not in investments. Judging by the fact that you write about your game on the stock exchange in the past tense, you yourself may have already come to understand this fact.
If you do not invest anything, and spend all your money on current consumption ( Option 2), it would seem that you have nothing to lose. But at the same time, you completely deprive yourself of savings and the opportunity to receive additional investment income. Any unforeseen life situation (you were fired from your job, you got seriously ill, had an accident, flooded your neighbors from below, etc.) unsettles you and makes you turn to friends and acquaintances for help (or, even worse, for a loan in bank, after which your return becomes negative). You meet old age without savings, with a beggarly state pension, which is impossible to live with dignity.
If you do not invest anything, but save some of your money from your salary and keep it in a stocking, mattress or safe with a yield of 0% per annum ( Option 3), then the purchasing power of your money is gradually decreasing due to inflation. However, it's still better than nothing. You have a certain protection against petty troubles in life, and you do not need to run to the bank for a loan every time some life troubles happen (by the way, inflation is a much lesser evil compared to bank loans, and in the sense interest rates- too). It is unlikely that you will be able to save a lot for old age by simply saving money. However, at any time you have the opportunity to quickly move to options 4 or 5, since you already have something to invest. And this situation is fundamentally different from options 1 or 2.
If you invest in simple, accessible to all and everyone instruments (for example, on a bank deposit) at a rate comparable to the inflation rate ( Option 4), then your situation is dramatically better than in the previous options. You no longer lose money as a result of inflation, but retain their purchasing power, and perhaps even earn a little. Your savings gradually form and begin to grow, and any, even insignificant, excess of the return on your investments over inflation leads to the activation of the mechanism compound interest, which on long investment horizons increases your savings exponentially.
It is clear that the conditional "10% per annum" in the article is given as an example, and in order to be able to show in numbers what can be achieved by investing with such a rate of return. The conditional “10% per annum” is just a rate comparable to the inflation rate, which can be obtained without straining too much, without having any knowledge, and investing in publicly available financial instruments like bank deposits.
At the same time, by saving at least 10% of their salary, and wisely investing it even in public low-income instruments, the vast majority of our fellow citizens have real chances to solve the pension issue during their lives. And people with incomes above the average have a chance to solve many other pressing issues - transport, housing, etc. Of course, not immediately. And, of course, this will not lead you to great wealth. But at least you will be able to cope with your tasks in this way.
Popularizers of the world of finance, like the same Bodo Schaefer or Robert Kiyosaki, call such investment options a plan " financial protection or financial comfort. As poppy as Kiyosaki and Schaefer's books are, they should not be underestimated either - they provide a recipe for success suitable for the majority of the general population, which, as a rule, does not want or does not have the opportunity to take a deeper interest in the world of investments.
If we draw an analogy with the world of sports, then regular investment in simple tools It's like regular jogging in the morning. This is not enough to fight for medals in sports competitions, but you will be able to maintain your health in good shape until old age and climb stairs without shortness of breath.
Is it possible to invest your savings under even more high percent (Option 5)?
Can. And, of course, this option is preferable to banal investments in public low-yielding instruments.
However, there is a difficulty here. This will require you to invest not only money, but also your personal time, and long-term and systematic. Therefore, even trying to give such advice in short public articles to people who just lazily read the mailing list would be pointless (about as pointless as giving professional running advice to those who have not even managed to crawl out for morning runs).
First, there are no easy answers here.
Secondly, the answers here can only be individual (that is, different for different people, and, believe me, very different!), and can only be given after a thorough analysis of the specific situation.
Vladimir Savenok can give you such advice, or I can give you during a personal consultation. A deeper understanding can be obtained through training on our distance courses. But to expect recommendations on investing from short articles in the mailing list - I repeat, it is rather naive.
By the way, keep in mind that it makes sense to seek advice only for those who have already formed the initial capital. That is, those who once chose at least Option 3, and even better - Option 4. With those who have no capital, who spent everything without a trace, or bought lottery tickets, alas, there is nothing to talk about - what's the point of talking about investments with those who have nothing to invest?
So start at least small. It's better than nothing. And only then, having gained experience and capital, move on to more professional investments.
The road will be mastered by the walking one.
Standing, walking backwards, or making chaotic movements based on luck (I'm talking about lottery tickets again) will not master it.
Full list of reviews and testimonials here:
Portfolio investing isn't easy, but it's not overly complicated either. Bonds, mutual funds, receipts, rebalancing, if any of these terms are not known to you, then you do not know how to manage money correctly. And if you have money and just lie under the pillow, then this is your mistake. Be sure to study the issue of investing, and start with this article.
As I always tell everyone who does not go forward, he goes back! Therefore, you always need to increase the baggage of your knowledge, since our memory has almost endless possibilities, so we "shove" as much as we can.
The object of my study has recently become a series of webinars by Sergei Spirin from the Center for Financial Education
A series of webinars called "Formation of an investment portfolio". Why did I choose to attend these webinars? The answer is simple, I realized that it’s time to save money for my old age, since my Internet earnings may not last forever, the second option is a financial pillow, for a very rainy day or, for example, in case of any disaster, I have to provide something for my family and myself . Basically, it's my insurance policy. I thought that just taking money to the bank is stupid! Therefore, I decided that I need to study a little deeper the issue of saving and investing money in different instruments. Up to this point, I really had very little knowledge of bonds, mutual funds and other things, so I needed to short time learn about it. I don’t like to carry knowledge of this kind myself, it’s easier for me to go and let them tell me, because this is not the “GRAIL”, but simply education in fact.
Let's figure out what the series of webinars consists of and what it is about, how it can be useful to you, and how it was useful to me.
The webinar series consists of 5 lectures over 5 days, each lecture is approximately 2 hours long, including Q&A and introductory remarks.
This is what my entry looks like:
All presentations discussed in the webinars are given for study and further "cheat" use. For those who are interested in learning about each webinar separately, here is an overview of each day:
What can I conclude: I advise those who have an interest and need to invest to get training from this author. The author's approach is competent and reasonable, you will see a huge amount of statistics collected from a large number of sources, which will allow you to really quickly "drive" into how you need to invest "for a long time". The man says that he knows well and it shows. No fairy tales, only specifics and facts.
I UNDERSTAND THAT I NEVER RECOMMEND ANYONE UNLESS I HAVE CHECKED THIS INFORMATION MYSELF AND DO NOT CONSIDER IT WORTH STUDYING!
Thank you for your attention and all the best to you!
