The very first day of my journey of investing, here I talk about my initial choices, how to choose in what goods to invest, why not to jump directly into shares, my thoughts about my strategy. Obviously, it is important to, before you start, think think and think!
Initial Investment Choices
I start by deciding my initial entry point in the market, I got a decent amount of knowledge about computer electronics, so that seemed to be a great point to start. Immediately I start reading about, the current gaming graphics cards that are in high demand, and relatively easy to find. One of the websites that helped was Gamers Nexus, they are a cool bunch that are running a website with all sorts of critical reviews and buyer’s guides that helped me into deciding, they have a YouTube channel as well!
So, if you want to start out with, I don’t know birds… Find yourself a website, or other resource that can provide you with accurate reviews, the place in the market of the bird, what kind of bird is it, life span, where to buy, how to buy, what to pay attention to, and so on. What I am saying is, educate yourself about your specific good, before diving in head first.
Determining investing potentials
I found my entry point and decided that it was worth the risk, I start scouring the “interwebs” to any marketplace I deemed loaded enough to start looking at my potential buyers and margins. I found 3 of them. So I bought 2 graphics cards worth 275 euros and 230 euros (I know, little over 500 but close enough). These two should be able to deliver me a profit between 80-150 euros easily, so not bad.
I made sure, to use the guides I found online, to determine if the cards are any good, and if they are used for mining. You do not want to rip off anyone who buys from you, I guess apart from your own karma, it might help you to create a closed loop costumer circuit if you remain trustworthy. A LOT of market places keep score in some kind of way to determine the quality of a seller, so I would advice to make sure you fall in the category with the highest stars you can imagine.
Investment Risk assessment
Now, knowing very well that what I am about to do is completely against all rules for online shopping in the private market, I will do this so you do not have to in order to save you from a big mistake.
I know that you might find it easier to just order and wait for your goods to arrive, but as RandomGaminginHD determined on his YouTube channel, you might not always get what you ordered, or you might not get anything at all. Just look at this video just for fun and to learn something about recognizing fakers and thus increasing your potential of getting baited into buying bogus items.
So I ordered 2 graphics cards and let’s see what happens. I do not really have my hopes up of ever getting any products, but that brings me to the next thing. Do have a look at your local law enforcement and if they help you with scams yes or, no. Luckily the Netherlands do, so that reduces my risks as well. Plus, on eBay I made sure that I picked a seller that at least has the little PayPal guarantee thingy on it. I will use both so at the very least I should be able to provide you with an update on if they work.
Why not start investing in shares?
I found that investing in shares requires you to actively follow the economic news and have a large understanding of it. You also need a larger sum of starting capital in order to be noticeably profitable. With goods, it is more easily determined with less time spent, and profit percentages can be really high as well. Not to forget, that you need a smaller capital in order to be effectively investing.
My strategy will be low volume, high risk, high payout. This means that I will have a higher chance of losing my money, but with that also a very plausible chance that I will be able to get a high profit return, if I do succeed. For me that seems to be the most logical course of action and after I have shown you what happens with bogus sellers, I will continue on the serious tour of showing what happens if it does go right.
Hope you enjoyed the read and learned something along the way and I will keep you updated about any progress I made. For now my simulated net worth is -5 euros.