I’ll be updating this while I’m learning more about Finance. The oldest posts are at the bottom, so start from there to see where the journey began!
10th September, 2017
It was lucky that I was locked out my Bitcoin account last week as it turned out to be a blessing. The day I was buying was the highest price (I think in the Bitcoin history so far). A couple of days later China announced that it was banning cryptocurrency. This bought the price down and I decided to buy a tiny $100 at that price to keep me interested as else I’ll forget about my intention to invest in it. The price has continued to go down the last couple of days, though it is still up over 350% since the start of the year. I will likely buy some more when I feel it’s dropped as much as is likely.
The question I’d like to research and answer today is How much should I invest per trade?
This is a tricky question and needs to be discovered by everyone, as well as being dependent on the intention and type of investment. For example, I wouldn’t buy a share for $100, because the fees would be too high compared to my investment. Coinbase (who I have started to use for Bitcoin) on the other hand, charges a set % and therefore – as far as I can figure out – it makes no difference whether I buy $100 or $10,000. I’ve played with small amounts (below $500) on Acorns and I don’t feel that it’s worth it, as the fees generally cost more than the return. At the same time, if you’re awful at saving money it is probably a good place to put your money that will discourage you from touching it. On a sidetone: I realised that Acorns have an ethical option now. I’ve been hesitant at putting too much in before as it didn’t meet my ethical standards. I’ll see how it performs and probably use this to reach my first goal of $5000, using it as a go-between account.
Some mutual funds require a minimum of $5000. I think I will invest in Australian Ethical’s managed funds when I have a ‘spare’ $5000, and will either add small amounts monthly or leave it alone and forget about it for a while. This should be secure, meets my ethical requirements and gives me some leeway to consider riskier investments while I’m experimenting and learning more about investing. As it takes me some time to save $5000, I’ve decided on $2000 as a good amount for me to invest (after the initial $5000 in a managed fund), as I feel like the fees won’t destroy the point of investing, it’s an amount I feel safe playing around with, and I can choose multiple investments over a few months – allowing me to get a sense of what I like investing in. I also like the concept of choosing an industry I’m interested in, and this method will hopefully push me to find which industry that is.
2nd September, 2017
Curiosity about cryptocurrency got the better of me so in my procrastination time (is it weird that I procrastinate accounting study with researching investment opportunities?) I started researching bitcoin. This is my understanding of what I read. Bitcoin is an online currency that instead of being regulated by a financial institution (like a bank) it’s regulated by everyone, because anyone can download and view all of the transactions. While people can try and fraud the system it is highly unlikely they’ll succeed because there’s too many people watching and too many people with the records for anyone to sneak a fake transaction on there. It’s pretty cool in that you’re not trusting one person, you only have to trust that one person will be interested enough to prevent fraud, and there’s so many people exchanging that everyone has an interest to keep it fraud free. This article about bitcoin was useful for me and from the title it should help you too. I was planning on buying some today, though unfortunately couldn’t verify my credit card due to not understanding the explanation in Portuguese (my computer is in Portuguese) and consequently locked myself out for 24 hours. Fingers crossed I can share more of my experience after tomorrow!
31st August, 2017
I’m starting this with a little bit in an Acorns account I started recently and a small amount of savings. My knowledge is somewhat low – I’ve been researching companies for a little while and started a spreadsheet of ethical companies who have good returns. I’ll be adding to it as I go. I’m qualified as an accountant too – though don’t work in it – so I have a bit of a head start on some people, though this isn’t an excuse for anyone to put off investing (there are enough of those, considering I’ve been wanting to jump into investing for a few years now). I have no idea where to from here. The questions I’ll be researching this month are: How much should I be investing per trade? How do I find ethical companies? Is a fund better for me? Is there an investing rule that I like (e.g. 50% low risk, 15% very high risk, etc.)? Is there a type of industry I want to focus on? If so, what will give me good returns, be ethical and keep me interested? What websites would be useful for me to sign up to? Join me in my journey and we can keep each other accountable!