how to raise capital for student investors?
Hi all, I've been lurking around the forum absorbing great knowledge from people.
I'm a student at Auckland University studying Architecture. But since 6th form (2006) I've been learning about sharemarket and have been investing since 2007 starting with only $1500.
I've learnt a lot of hard lessons over the past few years and made some good profit every now and then and my portfolio is now around $40000 (with $20000 of loan). However, One of my mistakes was in FPA when it was hanging at around $0.80. Including several other long term investments, I have around 65% of my portfolio locked up or I will suffer an 25% loss on the value my total portfolio.
I'm 21 years old, so I have a high risk tolerence. I can/ have seen my portfolio drop 50% without lossing my nerves. Although I have not followed finance related careers, I have educated myself extensively on sharemarket and everything relating to it. I am very much a foundamental trader, but use technical to make entry/ exit choices. I have tried and used all kinds of techniques over the years, and developed and refined my own strategy.
Apart from study, I have a permanent part-time job 20 hours per week. I can pretty much use that to support myself and use interest free loans for investment (student loan and bank overdrafts). As I can only utilise around $10,000 at the moment, I can't help but wondering how can I increase my investment capital?
My first dilemma is should I take a 25% decrease in my portfolio value in order to have more liquidity? It will mean all the profit I've made in the past few years will be broke even.
secondly, how can I raise more capital? My parents can not support me (in fact I'm supporting my own living and studying myself let alone investing). I'm not in the business school and as many know, people my age are not exactly interested in investing. It's pretty hard to bounce ideas from people. I can't get margin lending because I don't earn enough. I definately can't get/ afford personal loans.
I'm a bit of an idealist, I want to have enough passive income so that I can get by when I finish with university (when I'm 26). I sat this goal for myself since I was 18. am not a person who needs millions and millions to satisfy, but want to have enough freedom to pursue what I love without financial worries.
I live in Auckland, would be keen to get to know some of the pros and how you did it. Thanks heaps on reading my ramble!