But here goes.....hope it helps and sorry if i dribble too much.
I think the best thing u can do is lose money on a deal or share or house or whatever it may be.
I learn a lot more from losses than I ever will from wins or gains.
Although im not asking you to lose......paper trade or paper buy a property and see how you go......play with pretend cash and lose (not for real) for a while.....then learn what u are doing wrong......more often than not your research has let u down.
I look for shares that are......oversold......are in a momentum swing up or have a good story.....whether I believe the story doesn't really matter.....so long as all the other share traders do.
Hard to get your head around but im sure others can vouch, when u lose money u really only then start to look back and understand what u did wrong and what you didn't research enough before making the commitment to buy.
Its a bit like marrying a girl without dating her first.
Only after your married did u realise she snores, doesnt like u drinking with ya mates and spends a lot on makeup.
If you had dated her and conducted the research u would have saved yourself money and time perhaps.
many time I do the research....then go ok im ready to buy.......and it drops 20% anyway before ive even bought in.
I see that as a positive and a negative.
Positive as you have saved yourself 20% but negative as it means u didnt do your research correctly.......so u lost money in a roundabout way but learnt a valuable lesson.....research.
Ive researched many properties,deals, shares and never bought them.
You cant lose money if you never buy them.......but u cant make money if you don't either......however there will always be another opportunity around the corner.
Losing money is the best way to not lose more money.
Research is number one.
become very good at researching whether it be stocks that are undervalued or a house that after research shows to have great potential for capital growth long term.
Buy property for land content first, house second. Never buy next to a railway track
Never dismiss buying on a main road.....the best deals ive done are always on a main road.......no one wants them so they are always on the cheap side......and remember when u sell......u only need one person to think the way u do......and it will still be cheaper for them than around the corner.
Always buy with the intentions to sell within a month. in other words try to make sure u have made the equity the day u buy not the day u sell. Its easy to buy with intentions to renovate for 6,9,12 months then sell them on......but rarely does it happen, it always ends up in drama with council, neighbours, no money left, bank issues, the MRS gets angry, u miss on other opportunities.
Doesnt mean u have to buy and sell in a week, but think if i had to sell in a month, could i sell it for more than i paid, and if so why?
If its a yes then buy.
Never sell property unless u really have to. Always use the equity when u can. never go to the same bank for a loan. Divide the properties up between diff lenders........otherwise if u hiot a hurdle they will all fall like dominos....and im not talking the pizza shop.
Stick to what u know.
Buy where u know and understand.
It can still be interstate......but learn about the areas first, dont just buy blind.
With shares.....buy before the announcements and sell into them. not the other way around.
Dont listen to those that say u cant do that or it wont work.
Unless they can give you a clear reason as to why......dont listen to them. Grow some balls, rich people take risks, otherwise they would be like everyone else, which they arent.
Find a mentor or 2 and learn from them.
People say start small........I say start big and end small.
Its a bit like when the gym instructor tells u to lift a small weight to warm up your arm before lifting the bigger weights.
Well why not lift the big weight slowly to warm up the arm......the small weight can't warm up the arm for a big weight.
Dont be hard on yourself when u get it wrong.....there is beer for that.
Always have a goal price to sell at for shares and a price at you have to sell if it drops......read up on stoplosses.
With property.....look at it like a meal.
You can have a seafood platter with the works and its great, but after a while it looks a bit rough on the plate....chips get soggy, calamari rings start to pel away from the batter etc.
So the seafood platter, new house, looked good for a while then went to the you know what.
A single sausage on a large plate looks boring.....but add mash potato, beans,carrots and some nice brown gravy and it starts to look edible.
When u put in a offer on a property.....always in writing and always give the vendor a time limit.
Also.....always have the contract subject to the MRS giving you the approval who is overseas.
can always get out of the contract this way.
If the deal isnt accepted, walk away, dont grovel.
Also if you really think the house is cheap or has great potential, dont put in a lowball joke of an offer, pay what u think is a good buy without stealing it......otherwise u will always miss out.
Alway spend just that little bit more than u can afford, without hurt your not taking it seriously.
Dont buy old clappers in the middle of housing commission, they just dont go up enough and are always first to come down.....and forever fixing them or the tenant.
Find a likeminded person around your agegroup who you can pool funds ona deal, project.......but dont go in with friends or family or the girlfriend.
It will end in tears more often than not.
Surround yourself with successful people, only they know how to do it, as they have done it.
Ok I better get back to it.....any questions feel free to ask.
