March 17, 2001
Investing, trading or gambling – is there a difference and what is it?
The best way to tackle this issue — and it is an important one — is to consider the time-scale, and this holds true for most financial transactions. If you buy (go long) or sell (go short) a commodity and expect to make your return, you must decide beforehand what your time-scale is. Minutes to days – this is as close as it gets to gambling, the time scale suggests that greed and fear play a big part in decision making here. Days to weeks – this is what I would call the sharp end of trading. Weeks to months is the trend following trading zone and months to years sounds much more like investing.
Equities, Futures, Options, Commodities, Forex, CFDs, Warrants
There is a long list of instruments available to trade, in virtually any market, currency or time zone and it is a sign of how liberal our financial system is that they are available to Joe Public. This is real freedom of choice that is worth holding on to and remembering when the papers bay for more ‘controls on the city’.
For example, you could in theory buy shares in insurance companies with sufficient dividend income to cover all your premiums and enjoy ‘free’ insurance, take out an option to cover yourself against any drop in the share price, sell sterling against the euro to pay for your holiday and oil & gas contracts to offset rises in your fuel bills.
I say ‘in theory’ because you would have to be pretty clever, but nonetheless there is nothing to stop you doing it.
It would be a big undertaking to explain sufficiently the difference between these instruments and the various ways they can be traded. That is research that only you can do, during which you will find out which areas you are drawn to and feel comfortable with and confident enough in to be willing to risk your money.
How to decide ‘what’ and ‘where’ when trading
Do your own research and discover by fantasy trading (placing imaginary trades and honestly monitor your performance) what kind of trading and instruments suit your personality best. There are two factors that I take into consideration that I can share with you.
Firstly I consider the tax treatment of any gains – the higher the tax-take, the more likely it is that I will make money and have the pleasure of paying tax. You may need to think about that one for a moment.
The second factor concerns the luxury of being able to trade in any time zone, as one trading day draws to a close, in the next time-zone another is getting underway. If you like to start early you could consider seeing what is happening in Tokyo before the London market opens at 8 or sleep in and be ready for the New York opening around midday.
October 4, 2009
Actions speak louder than words
Helping people start their own venture or business is a very rewarding experience for me.
March 17, 2001
Why no bush fires so far in this downturn?
This year has seen some of the worst bush and forest fires in a hundred years. Some experts believe that too strict a control of fires over the past few years has prevented nature taking its course and periodically clearing the forest floor. The build-up of debris allows a wholly different and far more destructive type of firestorm to take hold.
Is there a valuable lesson to be learnt here and one that the business world could use?
October 4, 2009
Who’s got those missing billions?
Have you ever asked yourself what happens to the missing $billions? Surely someone must have them, right?
October 4, 2009
You should certainly be informed and in a position to make up your own mind about the current economic climate.
October 4, 2009
No one will argue with the fact that Britain is a great place for creative talent or that we let others exploit our talent and reap the rewards.
October 4, 2009
There is nothing like the real thing and I avoid talking about aspects of business I have not experienced first hand.
This particular experience you might find interesting, as it demonstrates a point I often make about where to find profit.
October 4, 2009
Investing, trading or gambling – what’s the difference?
If you fancy trying your hand at trading the financial markets, there are a few things you should think about.
October 4, 2009
The most important thing I have learnt as a practitioner is that the creative process can be much more effective and productive if it is well managed. I asked myself if this experience could be put to use to help others, and the answer has been most emphatically yes.
My experience tells me that in the right environment, managed sensitively, creatives can achieve amazing things but managed poorly they can be a disaster.
Those commissioning work also need help to interact in the right way with their creative partners.
January 8, 2009
Behind these short articles in the library there exists in-depth research. The articles have been written over a period of time and some have been updated off-line. The following selection serves to show the breadth of subjects I have enjoyed researching.
October 4, 2009
Each Case History is a précis of projects undertaken by Town Group and marketing managers will find the scenarios familiar. If you have a particular situation which requires some outside help, or would like to know more about a particular project then please contact me for further information.
November 28, 2006
Improving the return on creative resource investment.
Click on the title to find out more or on ‘Presentation’ to see a short slide show.
November 28, 2006
Providing synesthetic solutions to new challenges.
Click on the title to find out more or on ‘Presentation’ to see a short slide show..
November 28, 2006
Getting better results through better communication.
Click on the title to find out more or on ‘Presentation’ to see a short slide show.
November 28, 2006
Improving the return on creative resource investment.
Click on the title to find out more or on ‘Presentation’ to see a short slide show.