I am in my 20s and already have some savings. I would like to put these to work. I'm European if this matters.
I have 0 financial background. I have some but very little knowledge about the markets and investing. I know the basic differences between stock, fund, ETF, index or indicator. I somewhat know what technical analysis is and what it's for. I occasionally read investopedia when I don't know the meaning of some term.
I know that investing is stock is much riskier than investing in funds, and I have been "taught" that you shouldn't invest in stock unless you really know what you're doing. I guess this is good advice I should take, as a beginner.
I hear about Vanguard all the time. I'm not sure what it is (as in, Deutsche Bank is a bank, while Vanguard is a...? broker I think is the term?) In any case, as I understand it, it's some kind of financial entity that lets you invest in a diverse selection of funds. Banks also let you do this, so what's the difference? A person has shared with me their reservations about putting their money in these external entities instead of having your regular bank hold it. Have these reservations any good foundation? How safe/unsafe is Vanguard compared to banks? (a difference I can think of is that banks can be rescued by the goverment, at least this happened in my country, but brokers would just default?)
I am most interested in technical analysis, not that I am familiar with other strategies other than retirement plans or low risk funds you don't need to babysit, and have tweaked with stockcharts quite some time. I just found out about Above the Green Line and it sounds pretty interesting. Is this a legit strategy or is it a pass? I do know about backtesting although I have no idea how to do it, but I guess this strategy could be tested this way? Or I could create a portfolio in Morningstar and simulate investments to test it? Is this a good idea to see if it works? I've read however, some people saying this strategy misuses technical analysis. But then why is it ranked up so high?
In any case: how do I get started in this whole world? As I've said, I'm interested in technical analysis and I don't mind spending time to learn all this and to then put to use this knowledge and watch the market daily, etc (as opposed to people who would rather put it all in a fund and forget about out because they don't have time for it or simply don't want to spend it), but I don't want to be doing this 24/7 either as I have obligations as you can imagine.
PS: I have checked out the sidebar FAQ.
Submitted May 28, 2018 at 09:18AM by bay_squid https://ift.tt/2kvOayr
