Does anyone on here buy/sell stocks & shares?

[Millwallawayveteran1988]

Drip feeding would work better if it was done on a daily basis rather than monthly in my opinion.

If your money is used to buy units/shares on the same day every month, the month in question might have started at 50p a unit when you last bought, fell to 42p a unit during the month and then recovered to 50p a unit again by the time you next buy so you havent benefitted at all from the fall in value during that month.

I agree that drip feeding out of income if you do not have capital is a good way to get started. For capital i would be more inclined to invest and then hold.

 

[Plaything of the gods]

There are far better options for capital than drip feeding and whilst pound cost averaging reduces the risk, it DOES NOT take it away.

Put it this way, I would lose my license if I recommended a client to drip feed from capital.

Ah, but would you lose your licence?

I'm surprised, given that the OP said "Nothing big or anything just a couple of hundred quid hear and there. I want to use it as a way to try to earn some extra money to put away", which sounds more like investing from regular or irregular income rather than from a capital sum. Anyway, I'm intrigued by your statement. Why would doing that cause you to lose your licence?

 

[SWP's back]

There are far better options for capital than drip feeding and whilst pound cost averaging reduces the risk, it DOES NOT take it away.

Put it this way, I would lose my license if I recommended a client to drip feed from capital.

Ah, but would you lose your licence?

I'm surprised, given that the OP said "Nothing big or anything just a couple of hundred quid hear and there. I want to use it as a way to try to earn some extra money to put away", which sounds more like investing from regular or irregular income rather than from a capital sum. Anyway, I'm intrigued by your statement. Why would doing that cause you to lose your licence?

It wouldn't be classed as best advice as well, it isn't.

Obviously you're right about the OP, it doesn't sound like he's sitting on £100k in a bank so drip feeding is sound advice.

My point was more for others thinking about sitting on a fair old wad and using inefficient methods of investing.

 

[blue monkey]

As a matter of interest SWP, what would you suggest to someone with £100k sat in the bank....property?

 

[blue_paul]

I've got a substantial (enough) amount to be investing over the next three/four years.
My partner and I were going to buy a house but have decided to hold off and are emigrating for a few years.
Before we go, I want to get our money working for us rather than sat in a bank earning fuck all interest and that interest being taxed heavily!
To be honest, I'd be quite nervous doing anything off my own back and will seek out professional, accredit advice.
Looking to lock down the money for a few years and hopefully make a few bob and educate myself over the period in investing in stocks and shares. I’d be naturally cautious and with two kids under two, won’t be taking chances on high risk adventures!

Enjoying this thread if some of it is a little over my head for now!

 

[sir baconface]

I'm starting a company, but need investors to get it up and running. Fancy chipping in?

Send £250 to:

Mr Pigeon
1 Agenda Avenue
La La Land
L4 L4L.

Nice one.

This looks kosher. Money in post. Will you acknowledge safe receipt please?

 

[MCFCinUSA]

I've got a substantial (enough) amount to be investing over the next three/four years.
My partner and I were going to buy a house but have decided to hold off and are emigrating for a few years.
Before we go, I want to get our money working for us rather than sat in a bank earning fuck all interest and that interest being taxed heavily!
To be honest, I'd be quite nervous doing anything off my own back and will seek out professional, accredit advice.
Looking to lock down the money for a few years and hopefully make a few bob and educate myself over the period in investing in stocks and shares. I’d be naturally cautious and with two kids under two, won’t be taking chances on high risk adventures!

Enjoying this thread if some of it is a little over my head for now!

I think the only thing to be said (in general) is that what's right for some is not right for others.

Everyone has their own individual levels of risk they're comfortable with, plus their own tax situations & personal objectives (regarding capital gains, income & time windows) and present employment or retirement/family.

For sure - unless you're gambling, you want to diversify your risk, which for some people might mean playing aggressively with a portion of your assets and locking another portion into something 'more solid'.

There is never one right answer fits all, and careful consideration should always be given to the specifics of a person's situation.



(and what I might do with 5k, 50k & 500k will I'm sure be very different from just about anyone else, and based upon my own eclectic approach, what I'm looking to do with the assets, my time-frame & taxation)

 

[Millwallawayveteran1988]

I've got a substantial (enough) amount to be investing over the next three/four years.
My partner and I were going to buy a house but have decided to hold off and are emigrating for a few years.
Before we go, I want to get our money working for us rather than sat in a bank earning fuck all interest and that interest being taxed heavily!
To be honest, I'd be quite nervous doing anything off my own back and will seek out professional, accredit advice.
Looking to lock down the money for a few years and hopefully make a few bob and educate myself over the period in investing in stocks and shares. I’d be naturally cautious and with two kids under two, won’t be taking chances on high risk adventures!

Enjoying this thread if some of it is a little over my head for now!

Not many advisors, if any, would give you advice to invest in shares for 3/4 years.

One option would be to buy the house, rent it out via a company that guarantee the rent and when you come back you have the property at today's prices and the rent in the bank.

Obviously this only works if you are definately coming back!

 

[blue_paul]

I've got a substantial (enough) amount to be investing over the next three/four years.
My partner and I were going to buy a house but have decided to hold off and are emigrating for a few years.
Before we go, I want to get our money working for us rather than sat in a bank earning fuck all interest and that interest being taxed heavily!
To be honest, I'd be quite nervous doing anything off my own back and will seek out professional, accredit advice.
Looking to lock down the money for a few years and hopefully make a few bob and educate myself over the period in investing in stocks and shares. I’d be naturally cautious and with two kids under two, won’t be taking chances on high risk adventures!

Enjoying this thread if some of it is a little over my head for now!

Not many advisors, if any, would give you advice to invest in shares for 3/4 years.

One option would be to buy the house, rent it out via a company that guarantee the rent and when you come back you have the property at today's prices and the rent in the bank.

Obviously this only works if you are definately coming back!

Oh, I'm definitely coming back, just to Ireland rather than the UK. The housing market in Dublin is currently rigged by the banks not releasing re-possessed properties so as to create an artificial shortage and increase prices thus making their books look better. I wouldn't touch it with a barge pole!<br /><br />-- Fri Jan 17, 2014 10:38 am --<br /><br />

I've got a substantial (enough) amount to be investing over the next three/four years.
My partner and I were going to buy a house but have decided to hold off and are emigrating for a few years.
Before we go, I want to get our money working for us rather than sat in a bank earning fuck all interest and that interest being taxed heavily!
To be honest, I'd be quite nervous doing anything off my own back and will seek out professional, accredit advice.
Looking to lock down the money for a few years and hopefully make a few bob and educate myself over the period in investing in stocks and shares. I’d be naturally cautious and with two kids under two, won’t be taking chances on high risk adventures!

Enjoying this thread if some of it is a little over my head for now!

I think the only thing to be said (in general) is that what's right for some is not right for others.

Everyone has their own individual levels of risk they're comfortable with, plus their own tax situations & personal objectives (regarding capital gains, income & time windows) and present employment or retirement/family.

For sure - unless you're gambling, you want to diversify your risk, which for some people might mean playing aggressively with a portion of your assets and locking another portion into something 'more solid'.

There is never one right answer fits all, and careful consideration should always be given to the specifics of a person's situation.



(and what I might do with 5k, 50k & 500k will I'm sure be very different from just about anyone else, and based upon my own eclectic approach, what I'm looking to do with the assets, my time-frame & taxation)

Thanks for your reply - I opened an account with Rabo direct recently and will get in touch with them about investment options. I certianly won't be putting all my eggs in one basket, after that I'll have to educate myself on my options and make the correct decisions..........hopefully!

 

[MCFCinUSA]

there's a big debate about market timing (whether you can or can't) and I expect anyone who looks around can figure out the vast majority of fund managers underperform the market..

*and when you buy into a unit trust (or a mutual fund) and the managers have fifty to sixty holdings, it's easy to see how you get a mediocre to less than average return.

if you only have a three to four year time frame and invest 100% of it near the top of the market, you could still be looking at losses by the time you come to liquidate.

right now there is considerable downside risk (as seen by some analysts, traders & fund managers) and although it's difficult to say with any precise accuracy, if I was sitting on a large lump sump this week I wouldn't be pulling the trigger & sticking it all into equities (long) without very careful consideration as to the potential downside.

there are ways of mitigating the risk (with writing covered options for income) and/or hedging (a bit advanced perhaps for most) but these sorts of discussions are a little beyond what's being talked about above.

if you can find a decent stockbroker & you go for a portfolio of between five and ten companies, you can do pretty well along with being pretty nimble when you have to be; there used to be firms in Manchester like this, Arkwright & Pillings were two I had dealings with (and I worked very close to both when I was at Gartside's in St Ann's Square) but you should talk with people who have experience and can recommend a stockbroker based on their experiences with them & their research & performance record (if they manage discretionary funds).

remember the converse situation that it's always best to buy when there's blood on the street, and getting in at advantageous times makes up for a lot of other deficiencies when it comes to buying stocks, ehehe.

 

[AustinBlue]

there's a big debate about market timing (whether you can or can't) and I expect anyone who looks around can figure out the vast majority of fund managers underperform the market..

*and when you buy into a unit trust (or a mutual fund) and the managers have fifty to sixty holdings, it's easy to see how you get a mediocre to less than average return.

if you only have a three to four year time frame and invest 100% of it near the top of the market, you could still be looking at losses by the time you come to liquidate.

right now there is considerable downside risk (as seen by some analysts, traders & fund managers) and although it's difficult to say with any precise accuracy, if I was sitting on a large lump sump this week I wouldn't be pulling the trigger & sticking it all into equities (long) without very careful consideration as to the potential downside.

there are ways of mitigating the risk (with writing covered options for income) and/or hedging (a bit advanced perhaps for most) but these sorts of discussions are a little beyond what's being talked about above.

if you can find a decent stockbroker & you go for a portfolio of between five and ten companies, you can do pretty well along with being pretty nimble when you have to be; there used to be firms in Manchester like this, Arkwright & Pillings were two I had dealings with (and I worked very close to both when I was at Gartside's in St Ann's Square) but you should talk with people who have experience and can recommend a stockbroker based on their experiences with them & their research & performance record (if they manage discretionary funds).

remember the converse situation that it's always best to buy when there's blood on the street, and getting in at advantageous times makes up for a lot of other deficiencies when it comes to buying stocks, ehehe.

My though is that it's really dangerous to build any philosophy around cliches like "buy when there is blood on the street." Because there's always a competing cliche. "Never try to catch a falling knife."

 

[ColinBellsjockstrap]

Just look how the share price of Sports Direct has slumped and risen since floatation.

As Mike Ashley says, you have to have balls of steel......:)

 

[MCFCinUSA]

there's a big debate about market timing (whether you can or can't) and I expect anyone who looks around can figure out the vast majority of fund managers underperform the market..

*and when you buy into a unit trust (or a mutual fund) and the managers have fifty to sixty holdings, it's easy to see how you get a mediocre to less than average return.

if you only have a three to four year time frame and invest 100% of it near the top of the market, you could still be looking at losses by the time you come to liquidate.

right now there is considerable downside risk (as seen by some analysts, traders & fund managers) and although it's difficult to say with any precise accuracy, if I was sitting on a large lump sump this week I wouldn't be pulling the trigger & sticking it all into equities (long) without very careful consideration as to the potential downside.

there are ways of mitigating the risk (with writing covered options for income) and/or hedging (a bit advanced perhaps for most) but these sorts of discussions are a little beyond what's being talked about above.

if you can find a decent stockbroker & you go for a portfolio of between five and ten companies, you can do pretty well along with being pretty nimble when you have to be; there used to be firms in Manchester like this, Arkwright & Pillings were two I had dealings with (and I worked very close to both when I was at Gartside's in St Ann's Square) but you should talk with people who have experience and can recommend a stockbroker based on their experiences with them & their research & performance record (if they manage discretionary funds).

remember the converse situation that it's always best to buy when there's blood on the street, and getting in at advantageous times makes up for a lot of other deficiencies when it comes to buying stocks, ehehe.

My though is that it's really dangerous to build any philosophy around cliches like "buy when there is blood on the street." Because there's always a competing cliche. "Never try to catch a falling knife."

Yes, this is an excellent point.

Some stocks can get slaughtered and when the trend is definitely down (and sharp) you have to be brave & know what's going on.. many people get massacred holding on to losing positions waiting for them to turn around and companies can and do trade to zero.

Nevertheless, if you're familiar with technical analysis and can spot a double or triple top & bottom, you'll have opportunities to buy/sell with tight stops and quantified (minimal) risk.. this is more of a trading strategy than a long-buy & hold, although when you look at the composite stocks that make up the market indices and you can see them all topping out or basing (bottoming) around the same time you can get a feel of the general way the market may be moving.

This is one of the more simple and least risky applications of technical analysis to stock/market timing.

It's a little like playing poker.

If you get pocket Aces (in NL Hold Em) you know that you want to shovel all your money in pre-flop - if you can get another player in with you. You're not going to win all the time, but you'd expect to be a 75% to 80% favourite to double up, which is going to give you a very healthy positive mathematical expectation.

You're not looking to go all in on 3 2 offsuit - which is the worst starting hand when heads-up in poker.

Look for quality stocks that aren't going broke but may have been unduly sold off (and are close to support levels) and you get the optimal scenario.

You win some & you lose some - and this will always be the case.

Cut your losses quickly & let your winners run (all those lovely cliches you were talking about) and you should do more than okay.

(and study whatever it is you're doing FIRST, lots of study, patience, and diligent risk management)

 

[SWP's back]

As a matter of interest SWP, what would you suggest to someone with £100k sat in the bank....property?

No mate, and it is impossible to give any sort of suggestion without knowing a million things such as:

-Length of time you want to invest for?
-Your age
-Your financial circumstances
-Your present and expected future tax status
-Any plans on future residence (would you emigrate in the next decade etc)
-You financial goals (some people are happy with 3%, some 12% etc etc)
-Your career
-Your retirement plans
-Your attitude to risk (everything carries a risk, a bank account has inflation risk, i.e. if you are earning (net) less than 2.7% - RPI - then in effect, you are losing the spending power of your money every month
-Your income, expenditure and surplus
-Any previous experience

...and quite a few more.

But property is risky unless you know what you are doing mate.

Best bet mate is to get some independent financial advice. But not from me, I am not licensed in the UK any more and I look after expats in Qatar.