shadow-ornament

INVESTMENT AND PORTFOLIO WITH SMALL ACCOUNTS

You will get

  • A "How to" get started in investments, plain and simple
  • Know how the "big players" do it
  • 12 Videos with in depth information, straight to the point, no BS
  • FREE access to the course "Finance : English"  (after 7 days)
  • FREE access to the free membership area with additional videos (instantly)
  • FREE ebook "Finance : English - A Translation"
  • Receive Updates about more free stuff as well as when new Videos get published

  • For whom is this course intended to be?

    Who wants to build a portfolio with a small account

    Who is interested in investing and risk minimizing

    Who searches for alternative investment opportunities

    Who wants to know more about the daily job of a Fonds Manager

    Who is already a Day- or Swingtrader and is searching for safer options

    NOT for someone who is completly new to that topic

  • What topics will be covered?

    After a short introduction we will start with the different terms and talk about the basics before we can actually start to define our trading and investment plan.

    The sections are as following: Risk Classes, Risk Measurement, 2 videos about fundamental analyses, technical analyses, trading psychology, Alternative Investments and 3 different real time and real working portfolios for all kind of account sizes and risk preferences.

  • With this course you´ll have it easier to approach various finance terms and topics

     You will…

    See the structures and understand the different approaches of Portfolios when it comes to size and risk

    Have a basic idea about risk measurement and risk allocation

    Get introduced to technical and fundamental analyses and know how to apply them

    Know what “How-to” aproach a Fonds Manager has

    Get an brief introduction to Trading Psychology in Investment Portfolios

    Have an idea about alternative Investment opportunities

  • What will students need to know or do before starting this course?

    Basic Finance knowledge is necessary. If you have struggles understanding the things I talk about here,  I recommend to watch the “Finance : English – Course. It´s included in this membership.

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shadow-ornament

What is an Investor doing? Why should I care about a portfolio ?


Here are some thoughts about it

The main reason was that I saw a video from an professional Future Trader (no name dropping here) who said in an interview. “When you want to start as an Investor or a Trader you should have at least 500.000.- Dollars, everything else is just childsplay” What a prejudiced and actually insulting talking. It´s like, if you do not got born rich, you have no right to participate. Sorry, I have a different opinion about that!

But witnessing this comment, got me triggered. It made me think and do detailed investigation about how-to-do investment with a small account, similar way the big players do. It´s possible and it´s also not a hard thing to do. What you need to invest in forefront is time. Without analyzing yourself regarding your risk preferences, regarding the time of how long you want to get involved and a few more of those you better should not start.

So, my idea was to make a guideline of how to approach this the best and easiest way, without losing the focus on the small account size. Talking about size. In a portfolio, size matters thats a fact. Lets do some real basic calculations:

You can start with 1.000.- but results that will make you more happy could be archieved with a starting capital of about 10.000.-.(my recommendation) The problem with everything under 10K, is that you may get disappointed by the amount of your returns. Making 15% a year, sounds ok for someone who has 100.000.- on his trading account, but doesn´t look that impressive when on a 1K account and you just got 150.- more within a year. With a 10K account you would have got 1.500.-, thats already nice. Let me remind you at this point that the inflation is 2% and you get around 0,3% on your savings passbook and even less as your account interests. This just in case that you think 15% a year is not much! (Yes, with Daytrading, a higher interest rate is possible)

A portfolio is something that is made for safety oriented investors, it´s asset allocation and asset diversification. That brings the safety to this kind of investing. If one of the product fails in your portfolio fails, the others are there for the rescue..

 

Another Example:

You put 5.000.- on your brokers account. 3.000.- gets invested in 2 different ETFs and an additional Fonds. 1.000.- you use for swing trading on Blue chips (the biggest names on the markets) and 1.000.- you use for daytrading. Job done, safety installed, portfolio created and you still have the option to do daily, more riskier investments.

2 more reasons people tend to have when thinking about building a Portfolio are the following: “I don´t want to sit aside the computer all day, I want my money work for me” as well as “I don´t trust the Bank, I want to have full control over my investments.” OK, the later one is a little tricky and depends on your experiences with your Bank but the first one is something very interesting. An Investment Portfolio is a commitment for the long run, it´s not something you check every 20 minutes if something has changed. What you search for is a constant, safety oriented growth of your account size. Safety costs % in annual growth but let me point this out one more time: Portfolio Investment is safety oriented asset allocation for long time investments, means over years! I´ll show you in the Course how this is still profitable and could end in a neatly side income. With constant growth, the compound interest effect comes into play. Lets break it down with the above mentioned example of an initial investment of 10K and annual increasing rate of 15%.

  • 1 year 10.000.-
  • 2 year 11.500.-
  • 3 year 13.225.-
  • ....
  • 7 year 23.130.- - more than doubled the initial deposit
  • ...
  • 10 year 35.179.- you see where this leads too

Insurance companies that other life insurances that pay out the day your retire work the same way. The main difference is a the monthly payment of interests and that their interest rates is a lot lower. One more reason to learn about creating an own portfolio, maybe as a unique savings plan for your kids?

 

Given, the examples are broken down to the core ideas but you see where it could lead to. I hope I got you hooked on the idea of an Investment Portfolio and we see each other on the other side in the Course section.