Managed Funds Any chance the downward trend and volatility..how long?

I entered into the CFS Geared Share at the worst possible time...when it peaked in mid-October....it has since continued to drop...and i'm now like $400 below what I invested..

Not so much super concerned as I acknowledge the nature of Geared Investments and I'm just a new investor and will be here for the long haul...

...though just wanted to ask when can we see things stabalise a bit more....do you think the Election will add to the volatility?

 

You like volatility in a fund or you wouldn't have chosen a geared fund.

with upwards volatility you have to weather the downwards at times.

If you are in it for the long term then stop watching the prices. Just check them when you need to make any decisions

 

If you're in it for the long haul why was entering in Mid-October 2007 the worst possible time?

Change your mindset buddy. Being keen is good at times, but so too is a sense of detachment.

The fact that three weeks into your investment you're asking this sort of question tells me that you haven't developed that detachment yet. It will come.

 

I guess you'er right.. I haven't developed the detachment.

I keep looking at prices every 2nd day or something. Just my nature I guess.

Any help on how to reduce this urge?

 

It will come. I look at the prices all the time too, but the emotional response to increases or drops lessens more and more. Like a junkie you eventually require bigger hits to get the same reaction

Throughout the course of your journey you'll come across crazy increases in value, then corrections, and so on. You get used to it. After the crazy increases it's best not to think of all of the money you see on the screen as yours, because the market wants some of it back after a while. The process repeats but so long as generally the trend is up it's all good.

 

Pretend like you sold them...

I got rid of most of my funds within the past few weeks for other investments and now i cant even be arsed to open my spreadsheet for that tracks my prices, so maybe you could try this...

 

Too true! My fund is up about $10K today, but it just seems more and more like play money. From the bottom of the recent correction up to now, its turned around and recovered over $100K so that's starting to feel tangible. I still check my unit prices every day though. I like to watch!

Cheers,
Michael

 

Wow, you must have like $1million invested or something....????

Care to transfer your dividends to my bank account...help a newbie investor??

 

Something like that...

And a lot less than others on this forum I could name with 10 times my meagre holdings!

Cheers,
Michael

 

I been thinking about this lately. It is all about thinking bigger.

When I started out I invested $2K in a major float. That was a huge sum to me and the missus and we discussed it no end and she was never really happy about me spending it.

Now I can spend $50K on a share and she isn't even interested in what it was. She would be hard pressed to name any shares we own.

The day I can tell her over dinner that I bought $200K in something and her not be interested can't be too far off now can it? Then it will be $500K, then $1M etc

So what I am saying is that you got to start conditioning your mind to accept larger and larger numbers or you will never be a successful investor.

Hope this post makes sense - I often struggle to articulate my thoughts.

 

No struggling there mate, good post!

And I agree completely. Its also funny how quickly this can happen when you start investing in earnest. You need to temper your language though with the non-investing community. I literally just had a brief discussion over the partition at work with a workmate over a modest goal to pick up a deep-water frontage house and land on Pittwater. It was related to another discussion over an adjoining partition with a good mate who's also into sailing. The second guy though threw back tone and a comment like: "For you that won't be a problem right" as if to say "arrogant prat" or "as if!". I calmly asked him what he meant by that, was my goal too ambitious or innappropriate in any way. He back-tracked and ended up just finishing with something like "You need to be careful with your relationships when you're so driven. Been there, done that". I pointed out that my wife has a similar goal and we're aligned in our thinking. He just sort of went "Oh..." and withdrew.

Anyway, you can become blase about numbers when you do this long enough, but you need to be careful in your communication as often those you're talking to can see your numbers as way WAY out of their comfort zone.

Cheers,
Michael.

 

Can you be my sugar daddy???

 

Never a truer word said.

It's not just way out of their comfort zone but they can't even comprehend where you are at and the level at which you are operating.

Cheers