This was written for a different group /stocks it got deleted so hopefully this time it works !
Disclaimer
I dont want to sell you or recommend anything ! Just my expierence and little help so enjoy. If you want to ask me anything feel free, I try so answer everything.
This article is meant to be a small guide that helps you to find your way. Its based on my experience and knowledge, I gained throughout the years. Iam by far no professional. Iam just a guy who loves to invest. If you are new and have few grands to invest this article might help you.
My motivation to write this article was because when I turned 20 I got a small loan of 1 milli.... just few grands from my parents plus the savings I made from working. For me it was clear that I want to invest them. I always liked the idea making money and not really working for it! (Spoiler its kinda true and kinda not)
So I sum up few steps which will helped me to orientate and maybe help you to make your first investement
Step one 1. Where I can Invest?! You can basicly invest in everything. They are infinite options but I just cover up few topics.
They are 5 investments I would like to adress.
- Stocks.
- Real estate
- Options
- Start-ups
- Krypto
n+1. art, old cars, drugs?! (Don’t do or sell drugs pls!)
- Real estate
Stocks (my fav.)
I love stocks. I love understanding what the company’s plans are and where they are heading.
They are 3 different types of investment strategies.
- Short term (daily)
That’s usually daily trading. That means you invest and sell on a daily basis. If your not a expert it can frustrating and the chances that you will lose is high. Many people forget that you have to pay taxes and fees so even if you for example invest 1.000 and sell for 1.050 within 20 min. You will have to pay some fees and taxes and with luck, you are where you started. It only makes sense when you invest a lot, otherwise it makes no sense and to be honest I don’t know any person which makes profit with it.
Difficulty: Hard
Stress Lvl: High
Risk: Medium/High
Profit: Usualy bad
Investement: Medium
- Mid term (6month – 1 year+)
You buy some stocks for a longer period of time and hope it will go up soon.
This investment is much easier and less risky than short term. You see a stock going up and up so you invest 5k and hope you can ride a little on this upwards trend. Its fairly easy but you have to keep an eye on the market. A good example is VW it dropped because it has some Image problems. Thats a chance to invest! It will most likely to recover because its the biggest automarker in the world and it did. It happend 1000 times and normaly big companies dont fail they are exception but without risk you dont get anywhere
Difficulty: Medium
Stress: Medium
Risk: Medium
Profit: Good
Investment: Low
- Long term ( 1-2years – 10 years+)
Means you want to invest for a long time you are not only interested in making a quick buck but making a slow and steady progress. You are not interested if the stock goes up or down but you are more interested how much divendend they pay. Usualy they go up very slowly but steady. A good example for this type of stock is Royal Dutch (shell) it has ist up and downs but compared to other stocks ist stable. The dividend is 6% which is insanly good no other big company will pay you that every year. You invest 10.000€ and get every year 600€ which means a holiday for free. Also the work is very little, you only have to check the stocks every few weeks/month You wont get rich but its better than having it in the bank.
Difficulty: Easy
Stress: Low
Risk: Low
Profit: Low
Investment: Low-Medium
Before you invest check the company read the news and get a good overview. I have to admit Iam a fanboy at heart. When a stock of one of my fav. company’s has potential and it does make sense to invest it feels like buying tickets for my favorite Rockband. You support and cheer them on and if they grow you grow with them. BUUUUUUT don’t get my wrong never buy stocks just because you like the company or they have a cool name.
All in all Stocks are a great Investment!
Real Estate
If you want to invest in houses it’s a very save and profitable investment but it depends on your area and country you are coming from. In Germany most objects are overpriced right now so it wouldnt make any sense to buy some. In generell the more money you have the better. They will will be much more people who can afford an cheap flat/condo than the other way around. So expensive objects are better! The optimum is always a shitty apartment in a very good area. Also buying objects in bad areas cause lots of trouble with tenant. Crazy families who refuse to pay, messy people etc. this can end in a stressful situation so beware of that.
If you are already rich af than buy propreties
Example
I went once to an auction and most apartments are sold for double the estimated value. It would take ages (20+ years) to get your investment back. So beware of your market situation.
Difficulty: Easy
Stress: Usualy low/medium
Risk: Low
Profit: Medium
Investment: High
Options
Options are basicly betting that a stock with go up or down. You can bet on nearly everything. You can make lot of money very quick and lose everything even quicker. For me option trading is gambling with few extra steps. The difference is you can lose more than you invest. They are cases where people invest 1000€ and lose -120.000€ because suddelny the market changed.
If you have gambling problems and tendency to gamble this is absolutly not for you. You can see here (in the forum) lots of bad examples where people going full YOLO on something and lose a ton of money. They save up a little, invest in something even more risky and lose again.
I know a friend who makes good money from it but he has a clear head and read many books about this topic he uses software to analyse the situation and everything and he admits that sometimes he doesnt understand what happend. Of course options are not the devils tool but I like to be the voice against it. The truth is in the middle.
Iam a person who likes to understand what am I doing. After reading and learning about it, for more than a year I was more confused than before. It is probably because Iam to stupid for it, so I gave it up and moved on. Options are not for me
Difficulty: very hard (at least for me)
Stress: high
Risk: low - very risky
Profit: It can be everything
Investment: low
- Start-ups
Start-ups are also a great business opportunity. I was lucky enough to invest once a little bit into a upcoming company from my firend. He showed me his company and the plans for the future. I already helped him with few shows and stuff so I knew how everything worked.
The biggest bullshit I ever saw are the analyse prediction of the future sales. During the last few years I saw few of them and they all predicted that the company will make an absurd amount of money. It looked like high cool project all shiny and with big numbers. To be honest I dont even know who pay these people to make such bullshit predictions, seriously.
(as you can see I love talking from my life so forgive me my dear)
Long story short I still invested because I understood their model. They existed and already made great progress. I made 50% profit in 3 years. I am still very happy and greatful to had such good chance to invest and would do it again.
They biggest question is how do I find such chances ?
Tell people you are intersted to invest maybe a friend of you will start an company and you can invest or help you to find such a opprtunity. I went to many start up meetings and talk about a lot with my friends. They dont want to hear it but I tell them anyway and if there is a chance they will call me.
Few Tipps:
- Look for already existing companys
- Most companys give you a very good inside look before you invest! If not watch out they hide something.
- Try to understand what they are doing and where they are heading
- Look what the will offer you for your money!
Difficulty: Medium/hard
Stress: Medium/low
Risk: Medium/High
Profit: Good/Very good
Investment: From Low to high
- Krypto
Boy oh boy where to start. I heard to many experts saying yeah krypto thats future boyyyyyy I invested everything BOYYYYYYY and in few month I will be rich BOIIIIII. I heard this story so often that Iam allgeric to it now. This irregulated mess based purly on speculations wasnt anything form me. I didnt invest a cent into it and had lots of chances when bitcoin was 300-500 €. It didnt simply fit into my portfolio. It had no function for me. You could pay for your drugs in the deep web and some hipster pizzerias accepted it but in generell it had no function. So investing into kryptos is just speclutions it has no real fundation what I like.
My friends who invested early made a ton of money but all the people on the Hypetrain crashed.
Difficulty: I dont know
Stress: Depends how much storys you make about it on Instagra´m
Risk: Over 9000
Profit: It can be everything from super high to low in just few days
Investment: What ever you want, if this is still to expensive for you, make your own coin and hope some Idiot buys it!
Now you know my knowledge ehh more like my opionen on few things now its time for…….
Step. 2. Get a rough overview
Back than I didn’t know where to start so I asked everybody for advice like parents, friends , my parents friends, banks, forums, news etc. and got very different results.
Friends and family can be a good source of information how they did it. Of course often investments are impossible to repeat because they are 20 years ago but they can give some good advice. Its nice to hear few cool stories.
Example
Royal Dutch shell hast wo different stocks. One based in england (B) one Dutch version (A) (explained very simple, not 100% accurate). If you purchase Royal Dutch (A) you have to pay a 15% withholding tax that you wouldnt when you buy Royal Dutch (B).
Banks
Banks are terrible to ask. I always had shitty experience. The lured me into meetings, only to sell some shitty investment models from which they make some good money of me or some stupid insurence. They are not interested in your loses or profits they are interested to sell you the next stupid investement from which the make money. They never keep their promises and if you loose they will cheer you up and show their new hot investement and so on and so on until you loose and they drop you.
My mom works kind of in the finance sector and you wont believe home money older people lost ton of money because of this. I also found few very shady investements opportunities who would be illegal but I wont get into detail cause I dont have 100% proof for it and I also dont want to get in any trouble. As you can see Iam not big fan oft them and do not recommend!
News/charts/indexes/Forums
For me charts & news works the best. It’s easily so see what’s going on and gives you a great overview. The chart showed that a stock dropped 5%?! Good! Read the news/forums and find out what is going on! It’s that easy you don’t need 15 monitors and crazy software to understand what is happening. Dont make it to complicated! Have an easy overview about the market which you would like to invest.
Example
My parents invested around a year ago alot in Tesla. It was before Model 3 was released. Tesla had no expierence in mass production and it was clear (at least to me) that they wont have an easy start. They still made no profit and it was the first step to play with the big boys. Back than the Tesla stock was way over 300€ and it was based a lot on speculation and hype. It couldnt live up to they hype and dropped ≈ 30% - 35%.
- Few points & strategies
No Emotions
Never ever let your emotions guide you. Stocks are not based on a stomach feeling or any other emotion. Dont invest just because you like Elon Musk or Apple or anything. If I have a the chance to invest into one because the timing is right. Always make sure you know what you are doing. When it can wait a day, sleep a night about it and be sober! You can get sucked up into this world you will start giving a shit if you lose one grand and start digging deeper and deeper and lose sense the value of it. Stay sober and now when you have to stop.
Making losses
It will happend and dont freak out !
They are two options how to handle it and it depends on few things.
-
Sell them, you see the ship is sinking and their no possibility you can save it than sell it, It hurts but better early than it is to late. Or you find a better possibility to invest for example a start up than its also fine.
-
Keep it! Turning a Short/Mid-term investement into a long-term investement. Check first if the company will recover from it. For example the VW stocks dropped a lot due it scandal few years ago but it was clear that they will not go bankrupt so after a while they recover from it. Technically the market will grow infinite so after every crash they reach new heights, if you can wait that long the chances are high that you will make some profit and do not lose any money. Maybe the profit will be small but better than losing everything.
Diversity
Dont put all your eggs in one basket but also dont but every egg in a different basket. Have a good mix that you can still have an overview about your investment. Dont depend on one investment something bad can always happend. Having a good mix is important some investments will go up and few will go down. Its rearly that everything will crash (expect crises). So you can sell the good one and keep the bad ones until they go up.
Scams
Online
Stick to the basics! They are a ton of scammers online who want to show you a way to make fast money. Its mostly some MLM (multi level markting) aka Pryamide sheme, some buying and reselling some stuff from China or some weird option trading platform where pay in and your money is gone in 5 min without any trace o fit (no chance getting it back)! The Instagram advertisment is so ridiculous and I feel stupid mentioning it but hey if it wouldnt work they wouldnt exist. So please dont be this guy….
Offline
I really wanted to invest and have an own start-up. I met many people and visited countless seminars. Few of them offered me to invest but it was a mostly a mess. Onced I got fooled. A friend and I meet a person who had a start up for social media. We had some meetings restaurant he paid everything for us and looked very legit. I worked 3-4 month in this start up 3-4 hours a day, even on weekends for free. Only later to find out I was the only one working in it. (My friend pulled out very early cause he wanted to focus on his PhD) They rest oft he Team did absolute nothing! All the money the company generated was based on my work. They didnt make a lot of money but around 600-800€ a month. The founder spend all the money on vacation and stuff. I never got anything. They wanted to sell me 10% of the company for 15.000€. I always said I need more inside infos, which of course I never got. So I pulled out and they went mad and threaten me to sue me. I feel to this day ashamed that I trusted them and didnt saw it.
If you want get into something like this make a contract dont rely on handshakes people will tell you everything and wont keep it. I learned it the hard way
Be open minded
I met enough people who dont want to share with me their portfolio because they are scared that I will steal something from them. Its stupid! Talk to as many people als possible about your investment. Some amazing things can happend. I meet to many great people because of that and with some I share a 5+ years long friendship maybe we dont share the same ideas but I leanred a lot of it and sometimes I made some profit because of it! Be open !
Prediction & graphic lines
When I did my first Investment (it was gold) I read every morning every article about it I could for at least a solid year. Every monring 20 min Thats rouhly 120 hours. Thats time I will never get back. It was wasted time. The news/articels predicted everything. It was a rollercoaster. I believed it in the beginning because it was new to me. It really messed me up and I spend way to much time overthinking. Its fine to see a prediction but the more extreme it is the more it will never happend.
Also the trendlines are mostly worthless. I read so many people talking about the 50 day trendline or the 200 day trendline. It only idicates if a stock goes up or down but people interepte everything into it. “Oh yeah you can see the restience at 12.50 if it will drop below everbody will sell“. The next day it dropped and nothing happend. Dont believe everything in the internet. (lol)
Keep it simple
Dont make it to complicated you can have the best infos and charts and everything in the world and still lose everything. So dont make it to hard for yourself.
THE MOST IMPORTANT ADVICE
No depts
Dont take a credit just because you know a great investment. No matter how much you could earn DO NOT TAKE A CREDIT. This can not only ruin you financily but also your family and your whole life. This is no joke! Make no depts.
DO NOT MAKE FUCKING DEBTS!
My Strategy
It is a mixture of long term and mid-term stock investments. Its very easy I invested in:
Before I buy some
- Royal Dutch because of the high dividend
- Deutsche Bank when the hit nearly a all time low hoping to recover (still hoping ☹ )
- Lufthansa because they bought few airlines and hopefully will grow but its not (thanks Greta !)
- Tesla because they are low and made some good deals for the future. (update, sold it and made 30-35% in 6 weeks)
Am I rich or making a lot of money?! Hell no! But Iam making enough to pay for my holidays and few extras. I am patient enough to sit out bad times. I never sold anything with loose and I want to keep it that way. I like having a clean record.
Thanks for reading and feel free to ask my everything.
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