Author Topic: 30 P2P Experts Reveal Their Top 3 Investing Tips  (Read 7088 times)

edward

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30 P2P Experts Reveal Their Top 3 Investing Tips
« on: July 04, 2015, 12:22:24 PM »
http://thelendingmag.com/peer-to-peer-lending/
30 Peer-to-Peer Lending Experts Reveal Their Top 3 Investing Tips

“If you could only give a novice peer-to-peer lender 3 tips for successful investing, what 3 tips would you give?”

#1 Diversify your loans/Spread your money over many loans – 16 votes
#2 Do your homework/research – 12 votes
#3 Invest in an IRA– 5 votes (* this particular tip was strictly from the US experts & applies to US lending only)
#4 A. Reinvest your returns, don't let returns sit idle – tied with 4 votes
       B. Use automation to invest/reinvest – tied w/ 4 votes
       C. Make loans on various platforms – tied w/ 4 votes
#5 Prepare yourself for limited liquidity – 3 votes

Of course, Peter Renton, is in the list of experts!


nonattender

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Re: 30 P2P Experts Reveal Their Top 3 Investing Tips
« Reply #1 on: July 04, 2015, 05:32:17 PM »
I feel dumber for having skimmed that.
A little nonsense now and then is relished by the wisest men.

Fred93

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Re: 30 P2P Experts Reveal Their Top 3 Investing Tips
« Reply #2 on: July 04, 2015, 05:58:47 PM »
I feel dumber for having skimmed that.

+1

Lovinglifestyle

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Re: 30 P2P Experts Reveal Their Top 3 Investing Tips
« Reply #3 on: July 04, 2015, 08:22:48 PM »
I feel dumber for having skimmed that.

+1

You guys are so bad.  And right.  Made me smile!

Rob L

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Re: 30 P2P Experts Reveal Their Top 3 Investing Tips
« Reply #4 on: July 04, 2015, 09:37:37 PM »
I feel dumber for having skimmed that.
Yeah, I got a chuckle too  :)

AnilG

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Re: 30 P2P Experts Reveal Their Top 3 Investing Tips
« Reply #5 on: July 04, 2015, 10:12:34 PM »
Seems like same post as discussed in http://www.lendacademy.com/forum/index.php?topic=3091.0
---
Anil Gupta
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edward

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Re: 30 P2P Experts Reveal Their Top 3 Investing Tips
« Reply #6 on: July 05, 2015, 02:20:15 AM »
Sorry I bothered to post anything on this forum. Won't happen again. I thought it might help beginners and didn't realize it had been posted before. I was hoping it might open an intelligent discussion of differences with the article. I apparently failed at all my good intentions.

lascott

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Re: 30 P2P Experts Reveal Their Top 3 Investing Tips
« Reply #7 on: July 05, 2015, 03:13:23 AM »
Sorry I bothered to post anything on this forum. Won't happen again. I thought it might help beginners and didn't realize it had been posted before. I was hoping it might open an intelligent discussion of differences with the article. I apparently failed at all my good intentions.
Sorry. A fickle and peculiar forum for sure.  I think the regulars have talked to the basics over and over and are tired of it.  I'm still new.  I thought the general suggestions were OK. Diversification is critical. Reinvesting via automation is important on anything but the smallest accounts (< $2000). 

i.e. My son has a ROTH IRA account with pretty tight criteria but it is not large so you wouldn't check it regularly as P&I are that much. You want the $25 invested at quickly as possible tho and in with using your tight criteria.

Plus, a lot of those subject have had numerous more in-depth articles written about them.
ie. Diversification https://www.google.com/search?q=diversification+lending+club
Oddly that search didn't pick up this recent one tho: http://www.lendacademy.com/diversification-and-p2p-lending-part-2/
« Last Edit: July 05, 2015, 03:22:23 AM by lascott »
Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y

Lovinglifestyle

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Re: 30 P2P Experts Reveal Their Top 3 Investing Tips
« Reply #8 on: July 05, 2015, 09:43:58 AM »
Sorry I bothered to post anything on this forum. Won't happen again. I thought it might help beginners and didn't realize it had been posted before. I was hoping it might open an intelligent discussion of differences with the article. I apparently failed at all my good intentions.

Please don't stop posting.  You didn't fail.  For example, the link you spurred lascott to mention about part 2 of diversification is also an opportunity for intelligent discussion. 

Actually, these basic points are helpful for beginners.  Please pardon a little wry humor. 

nonattender

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Re: 30 P2P Experts Reveal Their Top 3 Investing Tips
« Reply #9 on: July 05, 2015, 10:19:00 AM »
I'm just old and jaded, pay no attention. That said, if you're that touchy, tip #0 is "be prepared to accept defaults as just (p)art of the game".
A little nonsense now and then is relished by the wisest men.

Lovinglifestyle

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Re: 30 P2P Experts Reveal Their Top 3 Investing Tips
« Reply #10 on: July 05, 2015, 10:25:58 AM »

Reinvesting via automation is important on anything but the smallest accounts (< $2000).  [/quote]

As a retired person, I found over $99K to be the breaking point for manual investment around the clock.  Switching to auto-invest as early as >2000 seems a little low because I would have missed the learning process.  Now I do both.  Manual yields are higher because my auto strategies are strict, but I'm grateful for automatic investment ability. 

LC's auto invest, which is one I use, rarely decides to take notes even though they are in the LC Autoinvest filter.  Another service does get the same notes that LC ignores, using criteria as identical as I could make it.  However, once in a great while LC will surprisingly snag a note that didn't show up at all, ever, on two third party sites!  Another thread has a recent post about whether anybody admits to using LC's automatic investing, which is where I should have said this when I had the chance.  Sorry.

lascott

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Re: 30 P2P Experts Reveal Their Top 3 Investing Tips
« Reply #11 on: July 05, 2015, 11:52:59 AM »
I'm just old and jaded, pay no attention. That said, if you're that touchy, tip #0 is "be prepared to accept defaults as just (p)art of the game".
Oh so true. I occasionally look at my "Late 31 - 120 Days" and defaulted notes to see if there is an obvious pattern or the age of them (early in my learning process).  This can be good as well to see a "beautiful" (no delinq, no public, good fico, long emply, etc) note that I would pick again ... that went BK for no apparent reason (I often assume job loss).

I had an interesting experience with my wife's and son's accounts (~100 notes each). His got a default early and his ANAR was negative. Hers went a long time without defaults and obviously had a great ANAR. His recovered to 7+% ANAR with reinvesting in performing notes.  Two very different experiences but both using similar note selection (ie. conservative criteria added on to strong credit models - LendingRobot and P2P-Picks).
« Last Edit: July 05, 2015, 12:07:43 PM by lascott »
Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y

lascott

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Re: 30 P2P Experts Reveal Their Top 3 Investing Tips
« Reply #12 on: July 05, 2015, 12:16:50 PM »
Reinvesting via automation is important on anything but the smallest accounts (< $2000). 

As a retired person, I found over $99K to be the breaking point for manual investment around the clock.  Switching to auto-invest as early as >2000 seems a little low because I would have missed the learning process.  Now I do both.  Manual yields are higher because my auto strategies are strict, but I'm grateful for automatic investment ability. 

LC's auto invest, which is one I use, rarely decides to take notes even though they are in the LC Autoinvest filter. Another service does get the same notes that LC ignores, using criteria as identical as I could make it.  However, once in a great while LC will surprisingly snag a note that didn't show up at all, ever, on two third party sites!  Another thread has a recent post about whether anybody admits to using LC's automatic investing, which is where I should have said this when I had the chance.  Sorry.
a) Interesting point about the learning process. I tried to learn/absorb/test as much as I could before I started. Didn't want to learn on the fly or limit that. When I started LC I was employed working on an automation tool so using automation tools were my mindset. I decided I needed to take advantage of really smart people with statistical and financial backgrounds who had credit models which I could make use of. Figured the profits (less defaults, better higher interest notes with less risk) outweighed the cost.

b)LendingRobot has a good general (3rd party) to Lending Club Automated Investing table. https://www.lendingrobot.com/#/lc_comparison/
Perhaps a reason why LC AutoInvest isn't good for you. Why I didn't think Lending Club Automated Investing was good was because of this:
http://kb.lendingclub.com/investor/articles/Investor/What-are-my-investment-options-if-I-use-PRIME
Quote
<snip>
The frequency of orders is based on the cash balance of your account, availability of loan inventory matching your investment criteria, and demand from other investors. The cash in your account may be deployed immediately or over a long period of time, and there may be weeks when many orders are placed and weeks when no orders are placed.
« Last Edit: July 05, 2015, 12:19:35 PM by lascott »
Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y

Lovinglifestyle

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Re: 30 P2P Experts Reveal Their Top 3 Investing Tips
« Reply #13 on: July 05, 2015, 02:56:11 PM »
Agreed, automation is great when you get it right.  For starters, it doesn't have to cope with the human mind set of the moment, lol. 

Yes, I figured LC must not perceive my 1.6% uncommitted cash along with the other caveats of availability, competition, and criteria as needy enough to warrant new notes.  That's ok.  Means less juggling to not get duplicate or triplicate notes of something that one is bad enough of.

Thanks for the additional reading material!

Reinvesting via automation is important on anything but the smallest accounts (< $2000). 

As a retired person, I found over $99K to be the breaking point for manual investment around the clock.  Switching to auto-invest as early as >2000 seems a little low because I would have missed the learning process.  Now I do both.  Manual yields are higher because my auto strategies are strict, but I'm grateful for automatic investment ability. 

LC's auto invest, which is one I use, rarely decides to take notes even though they are in the LC Autoinvest filter. Another service does get the same notes that LC ignores, using criteria as identical as I could make it.  However, once in a great while LC will surprisingly snag a note that didn't show up at all, ever, on two third party sites!  Another thread has a recent post about whether anybody admits to using LC's automatic investing, which is where I should have said this when I had the chance.  Sorry.
a) Interesting point about the learning process. I tried to learn/absorb/test as much as I could before I started. Didn't want to learn on the fly or limit that. When I started LC I was employed working on an automation tool so using automation tools were my mindset. I decided I needed to take advantage of really smart people with statistical and financial backgrounds who had credit models which I could make use of. Figured the profits (less defaults, better higher interest notes with less risk) outweighed the cost.

b)LendingRobot has a good general (3rd party) to Lending Club Automated Investing table. https://www.lendingrobot.com/#/lc_comparison/
Perhaps a reason why LC AutoInvest isn't good for you. Why I didn't think Lending Club Automated Investing was good was because of this:
http://kb.lendingclub.com/investor/articles/Investor/What-are-my-investment-options-if-I-use-PRIME
Quote
<snip>
The frequency of orders is based on the cash balance of your account, availability of loan inventory matching your investment criteria, and demand from other investors. The cash in your account may be deployed immediately or over a long period of time, and there may be weeks when many orders are placed and weeks when no orders are placed.


Lovinglifestyle

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Re: 30 P2P Experts Reveal Their Top 3 Investing Tips
« Reply #14 on: July 09, 2015, 06:17:04 PM »
http://thelendingmag.com/peer-to-peer-lending/
30 Peer-to-Peer Lending Experts Reveal Their Top 3 Investing Tips

“If you could only give a novice peer-to-peer lender 3 tips for successful investing, what 3 tips would you give?”

#1 Diversify your loans/Spread your money over many loans – 16 votes
#2 Do your homework/research – 12 votes
#3 Invest in an IRA– 5 votes (* this particular tip was strictly from the US experts & applies to US lending only)
#4 A. Reinvest your returns, don't let returns sit idle – tied with 4 votes
     B. Use automation to invest/reinvest – tied w/ 4 votes
     C. Make loans on various platforms – tied w/ 4 votes
#5 Prepare yourself for limited liquidity – 3 votes

Of course, Peter Renton, is in the list of experts!

I want to comment on this again because I just ran across the whole article saved in my "reading list" from the first time I saw the link to it.
For the second time I tried to find out more and couldn't.  What's with "the top three" bit anyway?  The article gives five, but I'd like to see the whole list including the ideas that got one vote each.  There might be something specific and unique there, aside from smart-alecky answers.