Sharon Connolly hedged her bets with a $ 25 investment at the age of 44 after having no experience in the stock market, and she is now sitting on a portfolio of $ 130,000.
“I use a high level, common sense approach,” she says. “Invest in what you know and seek out what you don’t know. I read the news, follow the companies on LinkedIn, and learned to read a simple balance sheet.
“Sometimes I dig a little deeper. For example, everyone uses Uber, but the company has huge debts without a solid strategy. They are still one step away from being closed by a regulatory body. It’s not a long-term investment for me, but you could have made quick wins with Uber if you had arrived early, ”Ms. Connolly explained.
“I also think it’s handy to follow the trends to see where there are exciting opportunities. For example, when the pandemic hit many organizations and businesses adopted platforms like Zoom and Microsoft Teams to communicate with their teams and customers, so these types of actions were likely to increase. “
Davide Marcotti, 30 from Sydney, started investing in 2017 and has now grown his portfolio to over $ 65,000.
“The most successful investors and mentors I have had the privilege to speak to have always taught me that no one can ever time the market. Investing is a marathon, not a sprint, ”he said.
“The average dollar cost, or DCA, is, in my opinion, the best way to minimize volatility risks and increase capital over time. This strategy prevents you from catching a falling knife or investing at any time, ”he explained.
“I also spend a considerable amount of time every day reading the news and studying the markets to uncover potential investment opportunities.”
Once he finds a potential stock that is worth investing in, he performs a “stress test” of his idea.
It asks questions like: Why do I really think this asset will outperform the S&P 500? How does it fit into my existing portfolio?
It also has a game with a virtual account on platforms like eToro to tinker with a fake wallet without having to risk real money.
Mr Marcotti is also checking with other investors and friends what they think of the stock and where they see it going over the next year.
Finally, he takes the time to study the competition.
“Every business has competitors. Think of Amazon vs. eBay or Apple vs. Samsung. Ask yourself why this particular company you have in mind is going to perform better than its competitors, as well as its expected growth projections in the next five to ten years, ”said Marcotti.
Dylan Weston, 27 from Melbourne, managed to quit his day job to focus full-time on the markets
“I spent a lot of time mastering my technical analysis skills and my ability to read charts,” he explained.
“What I love about technical analysis is that within seconds of looking at a stock chart, you can instantly understand short, medium and long term trends. This can help you save time by narrowing down companies that are in a good uptrend. “
Mr. Weston analyzes companies against criteria before acting.
“I often go back to my charts to determine a safe time to start investing in stocks, as well as to identify where my options are to sell,” he said.
“I think savvy investors should always know what is at risk and understand how much they can afford to lose, before making any investment decisions.”
