I am 18 years old and I have an interest in investing into the stock market into blue chip stocks using various investing techniques such as following the trends and buying into what I call "sure things" after conducting research. I have thought about trading stocks using things like CFDs, spread betting and options, but I believe that this is gambling not investing – I’m being more realistic with my investing possibilities.
What I would like to know is if it is possible to gain several hundred percent return each year compounded by investing into individual blue chip stocks, and holding onto them while the trend is going up by following the trend and selling them when it has went up several percent within a month or 2? Could this strategy gain several hundred percent a year? Is it realistic and if not, whats a better strategy in your opinion?
I always believe there are 3 things that help in varying degrees to make money in investment/trading …etc. These are Inside information, knowledge (experience) and luck. As you can’t possibly get all these three consistently you cannot guarantee success. However you can endeavour to get as much of each one as you can to be successful.
Don’t forget spread betting / CFDs are no different from other forms of speculative investing/trading. You have to get one thing right: You have to correctly forecast the right direction of movement in your selected market within a restricted timeframe. The shorter the time frame the less opportunity there is of getting the direction right. I would say; Never think you have cracked it, employ both caution and bravery and read, read, read (maybe that should be read and interpret!).