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paradox

Hot Tips

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No, I haven't got any hot tips nor do I think any tips are hot.

There have been a few posts asking how to buy shares. I received the odd PM on the subject as well. I have the grand total of 2 months experience and it has been a sharp learning curve. I have made a profit so far which is very satisfying. For anybody else planning to do the same - this is what I have learnt.

1) You will lose money on some deals, maybe even a painful amount - grin and bear it.

LESSON - on each individual deal ask yourself what is the most you are prepared to lose and do not commit any more than that.

2) It is not worth investing a couple of hundred quid unless you plan to hold the investment for a long time. The spreads (difference between buying and selling price) together with the dealing charges will erode any profit you might make. For example I bought £500 of a share for 584 pence and sold it at its peak for 680 pence. Looks good. But when you knock off the charges for the buying and selling it was hardly worth it.

LESSON - my policy is now to invest only a grand at a time - if I have 5,000 to invest that would mean five different shares or funds.

3) At no point have ALL my investments been up, there has always been at least one in the red.

LESSON - Spread your investments and dont put all your eggs in one basket

4) Mutual funds are very stable and do not move down or up a lot, some have high charges, but it seems that they outperform money in the bank.

LESSON - Merrill Lynch Gold and General and other mutual funds in gold or commodities are really worth it at the moment. Max out an ISA in one of them if you can.

5) At the moment, gold is hotter than Meg Ryan / Will Young / Kate Burley / Graham Norton *

LESSON - look at Goldmoney - it seems to be the cheapest and most reliable way of buying REAL gold. (as opposed to vouchers for gold or some other fake gold related type thingy)

* Delete as appropriate, the options have been chosen to suit all ages and sexual orientations

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No, I haven't got any hot tips nor do I think any tips are hot.

There have been a few posts asking how to buy shares. I received the odd PM on the subject as well. I have the grand total of 2 months experience and it has been a sharp learning curve. I have made a profit so far which is very satisfying. For anybody else planning to do the same - this is what I have learnt.

1) You will lose money on some deals, maybe even a painful amount - grin and bear it.

LESSON - on each individual deal ask yourself what is the most you are prepared to lose and do not commit any more than that.

2) It is not worth investing a couple of hundred quid unless you plan to hold the investment for a long time. The spreads (difference between buying and selling price) together with the dealing charges will erode any profit you might make. For example I bought £500 of a share for 584 pence and sold it at its peak for 680 pence. Looks good. But when you knock off the charges for the buying and selling it was hardly worth it.

LESSON - my policy is now to invest only a grand at a time - if I have 5,000 to invest that would mean five different shares or funds.

3) At no point have ALL my investments been up, there has always been at least one in the red.

LESSON - Spread your investments and dont put all your eggs in one basket

4) Mutual funds are very stable and do not move down or up a lot, some have high charges, but it seems that they outperform money in the bank.

LESSON - Merrill Lynch Gold and General and other mutual funds in gold or commodities are really worth it at the moment. Max out an ISA in one of them if you can.

5) At the moment, gold is hotter than Meg Ryan / Will Young / Kate Burley / Graham Norton *

LESSON - look at Goldmoney - it seems to be the cheapest and most reliable way of buying REAL gold. (as opposed to vouchers for gold or some other fake gold related type thingy)

* Delete as appropriate, the options have been chosen to suit all ages and sexual orientations

paradox

two months investing experience and you are telling people to buy gold - be carefull

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I am really not telling anybody to do anything, just listing my personal experiences.

Dear readers - PLEASE do not take anything anybody says in this forum as an endorsement of any sort.

A couple of people sent me PMs - so I thought I would jot a few things down here. I claim zero insight or experience of these matters but this board has stimulated me into dipping my toes in the water.

However I do agree with your sentiments about being careful. Just as buying an overpriced house is a bad idea, so is frittering your money away on shares, gold or anything else that comes to mind.

I suppose what I am saying is that gold is riding an incomming tide at the moment, like water washing higher and higher up the beach. When that tide turns is anyones guess, but make sure that you sprint fast to the exits when it does.

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Obviously no-one should take particular purchase tips from anyone on the net. But general advice/wisdom/observations shared on the workings of things is much appreciated, and for that ...cheers Paradox.

As they say, everyone was a newbie once...

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Well - not sure how to take that really...

I had never invested a cent until I sold my flat in September and decided to invest some of the proceeds. I don't think I am a particularly fast learner, however investing in commodities isnt that difficult really. Just the same as investing in Vodafone, or British Gas.

Once you open an online account and start looking around for what to invest in you will find that it is just as easy investing in one thing as it is investing in another. Just click your mouse and ..... zoom the cash leaves your account. The internet is crammed full of sites offering advice on shares and funds.

The tricky thing is deciding what to buy and I am a complete novice at that, although the combination of an economics based education and information from this forum has helped to some extent.

However I find the real problem is the trade off between time spent analysing what to buy, time spent doing what I should be doing (like getting on with my real job), and the profit from the investing.

So far my very modest profit doesn't really repay the time spent researching the market. To that extent you could even argue that I am wasting my time and would be far better off getting on with my day job!!

But its all good fun javascript:emoticon(':)',%20'smid_3')

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I am in the process of reading a book on stocks and shares investments specifically. I am developing some software to test the book against real historical stock traces (as downloaded). I'm not ready to start for real yet. I'm not the sort to have no strategy at all. I'm not saying any strategy works tho!

1) You will lose money on some deals, maybe even a painful amount - grin and bear it.

Do you check all of your stock investments every day? Just a question. My book advises cutting without emotion or hesitation at -7% off the buy point. However there is a strategy involved to identify appropriate buy points which, if used, are supposed to statistically reduce the chances of getting wiped out by the -7% rule on normal pullbacks.

This applies to high performance stocks that are rising (like BHP Billiton) and have strong "institutional sponsorship"- not to stocks like Microsoft that are now wavering in a boring sideways pattern.

2) It is not worth investing a couple of hundred quid unless you plan to hold the investment for a long time.

The author casually mentions investments in the $20,000 range!! Your stock did +16%. That's squat for £500, but 3,200 for 20,000 down.

3) At no point have ALL my investments been up, there has always been at least one in the red.

Book advice: Recycle poor performers into better stocks. The aim is not to be right every time, but to make big money when you are right. (quote verbatim)

5) At the moment, gold is hotter than Meg Ryan / Will Young / Kate Burley / Graham Norton *

I never wanted Will Young to win. He massacred that first song of his.

Edited by megaflop

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1) You will lose money on some deals, maybe even a painful amount - grin and bear it.

Do you check all of your stock investments every day? Just a question. My book advises cutting without emotion or hesitation at -7% off the buy point. However there is a strategy involved to identify appropriate buy points which, if used, are supposed to statistically reduce the chances of getting wiped out by the -7% rule on normal pullbacks.

++ Yes I glance at them everyday but I dont fiddle around with them, that is expensive as well, due to the aforementioned transaction costs. I have a couple that are below 7% down, but I am leaving them alone. I do have a strategy (sort of). I have tried to identify some companies that I think are newish and growing and I will stick with them for about six months to a year. Two of my stocks have pulled back more than 7% from their highs but I am going to sit it out and wait for them to go back up. However I do have target prices that I will sell at (if they ever get there). I suppose I see these shares as a way of holding cash that pays more than the bank in the long run (ie more than 5% over the next 12 months) I dont expect them to make me rich.

2) It is not worth investing a couple of hundred quid unless you plan to hold the investment for a long time.

The author casually mentions investments in the $20,000 range!! Your stock did +16%. That's squat for £500, but 3,200 for 20,000 down.

++ I wish I had that much spare cash. Since I learnt my lesson on investing a couple of hundred quid I am going for an 'active' account with sums of around 1000 to 3000 pounds per share or mutual fund spread between about 10 funds or shares. Then there is a bit I have invested in some funds that I dont plan to touch for 3+ years

3) At no point have ALL my investments been up, there has always been at least one in the red.

Book advice: Recycle poor performers into better stocks. The aim is not to be right every time, but to make big money when you are right. (quote verbatim)

++ See above. I suppose that is true if you want to try to unearth the gems that are going to increase 1000% etc. A couple of years ago a friend of mine was involved in a start up company. IF I had invested 5000 then I would have been able to buy a house now. At that time I didnt even consider it. Problem is - how often can you identify this sort of opportunity?

5) At the moment, gold is hotter than Meg Ryan / Will Young / Kate Burley / Graham Norton *

I never wanted Will Young to win. He massacred that first song of his.

++ Try telling that to my wife - his greatest fan!

I used to have a crush on Meg Ryan myself!!

:)

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A couple of years ago a friend of mine was involved in a start up company. IF I had invested 5000 then I would have been able to buy a house now. At that time I didnt even consider it. Problem is - how often can you identify this sort of opportunity

I think it is very difficult to be in the position to invest in a start up company. It has only been offered to me once before. A group of us working in a design consultancy were offered the chance to invest in the product we had been working on for a major client for the last year. After grilling the MD of said company (something he was woefully under prepared for) we decided not to throw our money away. Turned out to be the best business decision I made at the time as 3 months later the dotcom bubble burst, along with his startup.

I remember at the time I was reading rich dad poor dad, the authors opinion that the best business to invest in is your own sat well with my thinking. Not started up yet, but am saving for the day. I'll let you know when I need a cashflow injection ;-)

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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