Last year I was lucky / skilled enough to turn $100,000 into $373,800 investing in Australian resource stocks and sold out part of the way through the recent falls in world stock markets.

I’d like to reinvest my share market gains in the most profitable way I can.

My concern about stock investing right now is that the world seems to be in an interest rate raising cycle. This is bad news for share market gains, at least until the markets start to believe interest rates in the world’s major economies have stabilised.

I’ve considered selling one or two choice stocks short. Short selling is a riskier affair than buying (you can lose more money going short than long if the market turns against you). So I rejected that.

I’ve also considered shorter term trading. I’ve been reading Trading for A Living by Alexander Elder. It’s been an enjoyable read. Of some concern is Elder’s statement that 90 percent of beginning traders blow their account. Elder gives plenty of advice and strategies to ensure his readers don’t share the same fate. He leaves readers under no illusions that it’s easy to succeed. In fact, he did such a good job of presenting some of the negative features of trading that I don’t think I’ll go down this route without doing more research. If you are interested in trading shares yourself, I would recommend you read Elder’s book.

Elder begins the book saying,

“You can be free. You can live and work anywhere in the world. You can be independent from routine and not answer to anybody.

This is the life of the successful trader.

Many aspire to this but few succeed. An amateur looks at a quote screen and sees millions of dollares sparkle in front of his face. He reaches for the money – and loses. He reaches again – and loses more. Traders lose because the game is hard, or out of ignorance, or lack of discipline. If any of these ail you, I wrote this book for you.”

He ends with,

“If you believe that being a trader is worth the effort – as I decided years ago – my best wishes to you. I continue to learn, and like any trader, I reserve the right to be smarter tomorrow than I am today.”