FIRE investing strategy

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Rookie investor episode 3

As most beggining investors I was rather gambling than investing. I had no clue what was important when looking at stock. I had no clue: How to find attractive stocks, What tools to use for technical analysis, What copytrading was, What a support or resistance level was. What a moving average was, What an exponential moving average was, What the Fib retracement was and haw to use it property, What a stop loss was, What Ex-dividend was, What bullish formations were (Adam and Eve, double bottom, reverse H&S, falling wedge, rising triangle, bull flag) What bearish formations were ( rising wedge, double top, H&S, falling triangle etc), What a bullish or bearish divergence on the RSI was, What the MACD was, What the Stocastic RSI was, What the golden Cross was, What's the death cross was... I could go on and on and believe it or not but if you sit down with a person who is good at explaining complicated things to a 10 year old like a fantastic and patient teacher t

Rookie investor episode 2

As a fresh investor I didn't really know too many instruments or even stocks that I wanted to put my hard earned money in. What I basically knew was the the blue chip stocks that I have been using such as: Apple Adidas Google Nike Microsoft McDonalds Visa I had no idea about different types of industry so I simply started looking for some help on google. There I got a simple explanation that you can devide the stocks by size: large-cap, mid-cap, snall-cap. I also learned a about growth stocks ( ones that paid no dividends or the dividends were symbolic) and value stocks ( most of them pay dividends that are growing over time). I also got interested in making a quick buck on IPO ( Initial Public Offering) stocks but then I learned that: either there is a limited amount of shares to be offered and the result might be that I might get a small amount of them, or that the stocks are available to anyone but the previous share holders will be dumping their bag of shares on new investors a

Rookie investor episode 1

I'd compare my experience with investing a little bit like Benny Hill movies.The end of the movie is always the same: everyone ends up chasing Benny Hill. So I, like probably most beginners, was chasing after: a lot of articles, following exchange rates, checking few times per day the value of the US dollar is worth versus the Japanese Yen or the British Pound. I even started looking at the performance of many investment funds. I was always chasing after what the mass media were saying about stocks and to the forecasts that people should follow. If you are doing that then a friendly piece of advice is..stop doing that and focus on your family and find another hobby. Then one day I managed to opened my first brokerage account. This was my first contact with leverage. It was wonderful playing with five times more money than I had on the brokerage account. The only problem was I had to top up my account 3 days after buying a specific stock. If I didn't have enough cash on my broke

How to invest in dividend growth stocks in 5 simple steps

What are dividend growth stocks? A dividend growth stock has the following characteristics: it offers a dividend that compounds over 5% p.a. in the previous 5 years, the stock has a steady growth, the company pays the dividend from free cashflow (payout rationlower than 60% ), the company has to have a steady dividend history of more than 5 years, the company's capitalisation must be high enought to survive a major crisis, the company's position on the market must be secure enough to push on any increase in price of service or goods onto the customer, the company must have a strong mote that will make investors hodle the stock for many years and make them reinvest the money they got from any dividend. How to start investing in dividend growth stocks in 5 simple steps? STEP 1 Find a stock that is at a major support after a crash ( start with the 21 EMA on the weekly chart or that is at a 52 week low). The stock has to have a proven record for paying dividends that rise every ye

CFD investent pros and cons?

CFD stands for Contract For Difference. What is a CFD? Well let me start with what a CFD is not. It is not a stock. You can use this intrument with leveradge x 2 or x5 or x10 and I mostly use CFDs for shorting or longing. You do get a dividend from a CFD or if you are shorting a stock then you are going to be charged the dividend as it works in reverse. The pros of a CFDs A CFD gives you the possibility to make ganes regardless if the stock goes up or down. You can also trade CFDs when the market is closed. If you are trading witha x5 levrage and the stock goes up 2% your profit is 2%*= 10%! You can also make profit when you are shorting the stock or simply use the CFD for hedging your positions if you are afraid that the market will crash. The cons of CFDs If you are taking leveradge or you are shorting the market any small change will amplify your losses. If you have no idea about day trading you better not use this instrument as over 70% of daytraders loose their money. Day tradi