Its an interesting perspective - but personally i wouldn’t assume everyone who’s performed well previously is luck. There are professional career investors on there. Nobody can predict the future, so by that rationale every one of us are lucky if we make any profit with any investment.
Luck is involved, naturally but “Luck” is greatly increased with research and knowledge - just like you would do for your portfolio.
Going back to the original point, i simply don’t believe copying/following/being influenced by someones investment choices is a bad thing. or will shoot up the price you buy at. Retail investors move the markets fractionally in the main its institutional investors, funds, pensions that create the big swings.
I’ve used and still use eToro. Funny enough i don’t copy trades - as I’m too OCD and want to pick my own stocks. I was just saying that the theory of copying someone isn’t that big a deal.
Ideally DYOR, but its simply not feasible for everyone.
Yes, there’s certainly luck involved for everyone, but you can mitigate risks by diversifying. You can choose to diversify so much that the profit you make is basically due to movements in the market as a whole.
Some chose to diversify less, and for their increased risk hope for greater gains. But I think we’re in agreement that you should DYOR. We just differ on how dangerous the mindset of copying others can be.
Speaking as someone with lots of “social trading” experience, primarily in Forex, it is a very good way to lose money long term.
Typically these systems have sorting features and people follow the trades of those with the best returns/profit/successful trade % etc. But often these accounts aren’t trading with much of any real money of their own, sometimes they’re even fictional trades. If they start running losses they start a new account.
Now that’s not he case with all “follow my trade” type platforms, but it is with many. I would always urge caution.
Yes to the main topic question! The power of compounding is a real down thing! Even if it’s £30 a month it’s still something. I suggest trying to increase that £30 with time. Just like me you are a lucky because you have had the chance to start early in life! I have been lucky to understand the power of compounding at the age of 18. We have to be grateful.
Also, to anyone buying a stock due to just an emotional decision, you are playing a dangerous game in my view. I would not call that investing but speculating. Please be careful. If someone is new to investing and want to start investing while they are learning, go for ETFs until you are ready and comfortable.
Absolutely. I started an ISA in 1999 with £50/month to save to go to the 2002 World Cup. I didn’t go ( yeah, Scotland ) so just left it running until 2007 to pick up a fair sum.
Yes, it is worth investing even with small amounts. Gone are the days where you needed thousands or needed to be part of the elite to invest. In today’s world, with free share dealing and readily available information, investing has become available to the masses. You need to remember all investors, even the most famous such as Buffett, started with minimal capital. Have a look at this article as it is targeted at someone like you who is worried small amounts cannot make a difference.
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