Dear Community,
In the coming year, I would like to focus on targeted investments and share this journey with you.
The goal
For me, money is opportunity. You are rich if you have the opportunity to live according to your wishes. It's not about being able to buy everything that comes to mind. On the contrary: a minimalist and frugal lifestyle makes me happy. For me, it's more about not having to think about whether you can afford an expense and whether you can buy something just for pleasure and enjoyment. I earn around €40,000 net. According to the definition above, I already consider myself rich.
I am about to start a family in the near future. My goal is to be able to give this family the same feeling of wealth in the coming years by securely accumulating assets. Perhaps one day by buying a small house with a garden.
The path
Up to now, I have only invested in overnight and fixed-term deposits, building society savings contracts and life insurance policies and, to be honest, have neither understood the "topic of finance" nor given it much thought. In light of the upcoming life changes, I have started to change that.
My journey began in November 2024. I slowly grew into the topic via the "classic beginner's traps" (see first figures below).
I learned that the goal should be steady growth. Large multi-percent gains are not necessary, the risk is too great. Exponential growth is on our side. It just needs help in the form of risk minimization for it to fully unfold its miracle.
The approach
At the end of 2024, I initially invested a lot in (individual) shares, crypto and derivatives. So far, this has been quite profitable - but there are clear signs of clumping and the risk is simply too great for me, especially in view of the uncertainties of the coming year and after gaining a better understanding of the stock market. I would therefore like to review this approach in 2025 (preferably in January), reallocate positions and then pursue an approach (see below) over the rest of the year. #gtaa - approach (see below) for the rest of the year.
I will share here how I manage to do this and what thoughts and challenges I am dealing with.
At the same time, however, I don't want to leave the potential of the fast-moving market completely untapped. I will therefore invest a maximum total of €1000 in derivative positions. Once again, my aim will not be to win big. Rather, I want to make steady profits with small bets. Individual positions may therefore not exceed €200 to minimize risk.
Lessons
I would now like to share specific experiences from my journey so far with you. These are merely my subjective assessment and of course not investment advice or anything similar. You are responsible for yourselves.
My takeaway from November and December 2024:
- I'm deleting Reddit. The app is bot-infested, the community is borderline in my opinion. #getquin is the best alternative, the community has really impressed me so far.
- I don't invest in hyped "penny stocks", especially not from Canada.
- With regard to crypto, I only invest in $BTC (-1,19%) . I also hold a position in $HBAR (-2,91%) because I find the project exciting. In principle, however, I am toying with the idea of liquidating both positions and instead taking up corresponding crypto ETFs as part of my GTAA approach in the "commodities" area. From $ETH (-1,75%) I still have residual holdings, for which the same applies. More to follow.
- I continue to hold overnight money, building society savings contracts and life insurance. Security is the top priority.
- The largest savings orders will go into the newly opened portfolios. I will invest almost 95% of this sum in the #gtaa - invest in the approach. Liquidated positions will be invested via call money (#scalablecapital and #traderepublic ) will earn interest. To minimize fees, I will set up my main portfolio in #scalable and use derivatives, call money and cashback in #traderepublic use. I trade crypto via #bitvavo .
- I use the remaining 5% to #highgrowthinvesting by buying promising individual stocks. In addition, as described above, I will invest in #derivate as described above.
- So far, I have found the offers from #getquin , #aktienguide and #traderradar have turned out to be profitable. I do not receive any commission, this is just my opinion so far.
That's all for now. I will present the concrete implementation of my strategy in detail in the following weeks.
If you have read this far - thank you very much! I look forward to sharing the next steps with you. I also look forward to your reactions, thoughts and feedback!
I wish everyone a good start to the new year 2025. Stay healthy, have fun and never forget that investing is a minor matter alongside the really important things in life, or at best can serve to open up more space for the really important things.
Matthias
