Trading the stockmarket (NO Referrals)

[Martynt74]

@booyaka

Agreed, i'm hoping to try and get him to think a little more about it. I suppose the downside now is the losses are large on his main holdings so mentally the thought of selling to re-balance is difficult.

 

[413x]

By no means having a "pop" at your dad - but as you say - a classic example of people just blindly following tips/online forums/newspaper tipsters without actually looking at the bigger picture.

Seen 100's of people over the years that have done this. "most" people (not everyone) would be better off with a simple portfolio of funds/unit trusts spread across a sensible attitude to risk in a balanced portfolio of assets/geographical range.

I get people want to do better - but most people just lump on the first thing they see on the news (Bitcoin/Tesla/Lloyds/Zoom to name but a few recently) and end up getting burned badly.

Did a review with my longest standing client and we looked back over the 18 years I've managed her pension fund - average return (after charges) 7.8% per year, for 18 years. Solid, if "unexciting" spread of funds, but who wouldn't take that over 18 years.

Yeah I'm thinking of doing this. Less stress and you get a load of experts managing it effectively.

Only time I'm thinking of investing in a company directly going forwards is exceptional circumstances

 

[Martynt74]

Yeah I'm thinking of doing this. Less stress and you get a load of experts managing it effectively.

Only time I'm thinking of investing in a company directly going forwards is exceptional circumstances

That's mostly what i do now, although my portfolio is fairly small at around £4k. I figure that transaction fees are high enough that for me to buy into a share i'd need to be massively exposed just to make it worthwhile, unless as you say it's exceptional. I was looking at something the other day but even a £500 investment would require around a 5% gain just to break even.

 

[Gibbo]

Yeah I'm thinking of doing this. Less stress and you get a load of experts managing it effectively.

Only time I'm thinking of investing in a company directly going forwards is exceptional circumstances

This is what I have done, my pension is at risk level 6 out of 10 and been managed by experts and is seeing good returns as I get older they will reduce the risk level to around 3/4 out of 10 so that in theory it grows at a steady rate which it does anyway due to monthly payments and me paying in lump sums from time to time.

I also have my own portfolio invested as well which I manage myself, which so far is doing OK, but no huge gains so far but I tend to take small profits to limit my risk.

 

[AKAK]

@booyaka

Agreed, i'm hoping to try and get him to think a little more about it. I suppose the downside now is the losses are large on his main holdings so mentally the thought of selling to re-balance is difficult.

If you can get him to read a blog then this site is excellent https://occaminvesting.co.uk/

 

[BennyC]

IAG are up about 8% today - the BBC are saying down 30%, but the data says something completely different.

https://www.bbc.co.uk/news/topics/c77jz3mdmy3t/iag

I dunno where the BBC get their market data recently, but it's total gash - they didn't report oil prices for something like 2months!

Edit:
Looks like there's been some sort of share dilution or something been happening the last few months?

Rights issue.

 

[DarrenM343]

IAG are up about 8% today - the BBC are saying down 30%, but the data says something completely different.

https://www.bbc.co.uk/news/topics/c77jz3mdmy3t/iag

I dunno where the BBC get their market data recently, but it's total gash - they didn't report oil prices for something like 2months!

Edit:
Looks like there's been some sort of share dilution or something been happening the last few months?

yes, tapping investors for cash. Price adjustment for that.

This is what I have done, my pension is at risk level 6 out of 10 and been managed by experts and is seeing good returns as I get older they will reduce the risk level to around 3/4 out of 10 so that in theory it grows at a steady rate which it does anyway due to monthly payments and me paying in lump sums from time to time.

I also have my own portfolio invested as well which I manage myself, which so far is doing OK, but no huge gains so far but I tend to take small profits to limit my risk.

What are your thoughts over the £1million lifetime pension limit regarding taxation?

Mine is completely self managed although I use funds too, actively managed while others passive. I could take better advantage of tax relief but with no kids and not being married, I keep like to keep options open as to when I may retire so use ISA's too. Paid little into a pension last few years - spare cash been paying down a BTL mortgage. After that, no debts at all.

 

[Simon]

They are.

Owners of shares get cash dividend today so they aren’t down like suggested.

But it seems to be not so well communicated 'IAG will issue 2,74 billion euro of shares at 0.92 euro each (a discount of 35% of last closing price)'

 

[silversurfer]

Its a bit unfortunate because plain old yahoo used to give out adjusted charts for share base so its was nicely accurate vs looking at just the price. Same applies to ex div and so on, some share pay outs can be very large like vodafone and fair few other companies over the years. FT used to do it, maybe still locked away to members but not sure where else they might do something so useful as a chart showing value over time etc.

Managing shares might work if you gifted them the shares somehow otherwise its difficult to balance, IFA have insurance against bad advice as I understand it. Funds over shares generally is best, someone I mentioned MSFT to on the first windows versions went RR. but eventually took up PCT fund on its launch at 100p some good sales advice by HL perhaps but thats £20 now. People dont like being told what to do but mentioning funds and/or IFA should help reduce risk.


GKP vs GENL, is that less risky? I remember I had a good run with a nigerian oil player (run by a brit ex para) which was weak then got bought out, they had sold a giant gas find to GENL, seeing as there was no gas pipes nearby it was a good deal for them. I view natural gas as far less polluting then petrol diesel etc. sadly the world is obsessed with electric cars etc. but maybe the power stations will run on it more in future. Germany replaced nuclear with coal for example

https://www.malcysblog.com/2020/09/oil-price-genel-sound-pharos-hurricane-and-finally/

Commodities is always highly volatile and nearing retirement a bit questionable risk, its not bad imo just extreme. Just holding FTSE has tons of oil in there, I'd rather go gold and hope it benefits from cheap energy with better margins.

I do totally hope BT is taken over, it would be good for the entire UK for those resources to be properly managed and utilised. Its unlikely because of its pension liabilities I guess but also weak pound might help pass a deal?

I hope that ARM deal means we get a listing on FTSE under representing UK interests which was part of the original deal. I dont expect it but would be nice, apparently its bad for industry overall that nvidia would acquire this unique rival.

 

[jaffveyda]

Anyone investing in AIM companies?

 

[Gibbo]

Anyone investing in AIM companies?

I have 10,000 shares in Boohoo at the moment and hoping for a good increase by end of month or next month doing ok at moment but expecting good sales results and positive results from investigation and maybe acquisition news later this month.

 

[Gibbo]

yes, tapping investors for cash. Price adjustment for that.



What are your thoughts over the £1million lifetime pension limit regarding taxation?

Mine is completely self managed although I use funds too, actively managed while others passive. I could take better advantage of tax relief but with no kids and not being married, I keep like to keep options open as to when I may retire so use ISA's too. Paid little into a pension last few years - spare cash been paying down a BTL mortgage. After that, no debts at all.

Not sure on what your on about but that might be because my pension goal at aged 58 is to have around 550-700k private pension value by then for myself to draw from and retire. I have zero debt now and plan on staying that way so any pension is just for living and I should have considerable savings too as well to pull from, which I’m guessing don’t form part of the total 1M value?

The future is unknown though I’ve balanced my income so that I have a good solid retirement pot but without sacrificing what’s most important now which is enjoying life whilst younger.

Who knows if my share investment portfolio explodes or does well then my 50k pot today could be 5M in 20 years also but that is more a pipe dream as I’ve not even got beyond CGT profits yet but plenty of time yet in this tax year to do so or lose loads but it’s why I focus on small profits.

 

[DarrenM343]

Not sure on what your on about but that might be because my pension goal at aged 58 is to have around 550-700k private pension value by then for myself to draw from and retire. I have zero debt now and plan on staying that way so any pension is just for living and I should have considerable savings too as well to pull from, which I’m guessing don’t form part of the total 1M value?

The future is unknown though I’ve balanced my income so that I have a good solid retirement pot but without sacrificing what’s most important now which is enjoying life whilst younger.

Who knows if my share investment portfolio explodes or does well then my 50k pot today could be 5M in 20 years also but that is more a pipe dream as I’ve not even got beyond CGT profits yet but plenty of time yet in this tax year to do so or lose loads but it’s why I focus on small profits.

Ah, I see. I assumed you'd hit the £1m lifetime threshold given what putting in pension pot and wondering what approach you might have been taking in regards to it. Something I've not thought too much about yet. Retiring early helps to avoid it.
And no, your savings will not form part of that £1M threshold .
Great to have no debt. Wanted rid of a BTL place but always unlucky when in a position to try to sell it (market conditions etc). When that mortgage paid off can then sell later knowing what I get for it will be bankable. It's a period property which these days out of favour a bit I think(vs when I bought it) - people seem to want new ****

 

[Gibbo]

Ah, I see. I assumed you'd hit the £1m lifetime threshold given what putting in pension pot and wondering what approach you might have been taking in regards to it. Something I've not thought too much about yet. Retiring early helps to avoid it.
And no, your savings will not form part of that £1M threshold .
Great to have no debt. Wanted rid of a BTL place but always unlucky when in a position to try to sell it (market conditions etc). When that mortgage paid off can then sell later knowing what I get for it will be bankable. It's a period property which these days out of favour a bit I think(vs when I bought it) - people seem to want new ****

Well it’s good to know about the 1M limit and to be fair I had calculated anything over 500k would be quite comfortable due to no debt and savings etc.

Property wise I own two properties so am happy on the bricks and mortar side of things.

Just be nice if I can turn 50k portfolio into 100k plus by taking advantage of stocks hit hard during lock downs that are financially secure and should recover in 1-2 years but of course I’m aware trading is risky.

 

[DarrenM343]

Well it’s good to know about the 1M limit and to be fair I had calculated anything over 500k would be quite comfortable due to no debt and savings etc.

Property wise I own two properties so am happy on the bricks and mortar side of things.

Just be nice if I can turn 50k portfolio into 100k plus by taking advantage of stocks hit hard during lock downs that are financially secure and should recover in 1-2 years but of course I’m aware trading is risky.

Trading risky but sounds like you have a great balance of low risk assets too, including property. Second property for passive & retirement income is good especially with no mortgage.
At some point I hope the UK turns it around and the FTSE heads off on a nice run which will drag up everything with it. Well positioned recovery stocks as you said should produce good return over next few years.

 

[Skeptic]

All, it has been a pleasure playing with you. I’m going to be a new dad in Feb, so I’ve cashed all but one investment (GDWN). I’ve also bought a house, which, owing to a mixup with my partner’s property (down valued by 20k), means that I’m due to pay most of the £150k deposit needed for the new one.

My stats overall were OK. Probably walking away with £+10k over the last few years which, while better than the bank, was not worth the research and time spent. Really it has been fun, to a degree, but (all jokes aside re: Greggs!) I just can’t be arsed with it. Listening to the constant news flow and how ‘bleak’ things are out there, I feel lucky to even have a job at this point. I’m not a doomsday prepper, but I think the markets are going to destroy people over the next few years. Worthless companies being pumped up; the world and its dog in index trackers; bankruptcy and so on.

I hope you all make good returns. I will still be around, and may get back in the game at some point, but at the moment the world is too crazy - and my future too unpredictable - to feel comfortable with anything more risky.

My best investment over the last few years? Vanguard Life Strat 80/20. Make of that what you will.

 

[Simon]

Good shout i think, good luck with the baby!

 

[413x]

All, it has been a pleasure playing with you. I’m going to be a new dad in Feb, so I’ve cashed all but one investment (GDWN). I’ve also bought a house, which, owing to a mixup with my partner’s property (down valued by 20k), means that I’m due to pay most of the £150k deposit needed for the new one.

My stats overall were OK. Probably walking away with £+10k over the last few years which, while better than the bank, was not worth the research and time spent. Really it has been fun, to a degree, but (all jokes aside re: Greggs!) I just can’t be arsed with it. Listening to the constant news flow and how ‘bleak’ things are out there, I feel lucky to even have a job at this point. I’m not a doomsday prepper, but I think the markets are going to destroy people over the next few years. Worthless companies being pumped up; the world and its dog in index trackers; bankruptcy and so on.

I hope you all make good returns. I will still be around, and may get back in the game at some point, but at the moment the world is too crazy - and my future too unpredictable - to feel comfortable with anything more risky.

My best investment over the last few years? Vanguard Life Strat 80/20. Make of that what you will.

Its easy to forget the stress and constant checking, research etc. Sometimes even just doing overtime at work might be better!
Always FOMO too more you check forums.

Wise choice. I'm getting to this point too. Not there yet. But close.

I've just had my papers through telling my about my work place share scheme.
If it stays at current price will be able to build that conservatory in 3 years with no loan. Fingers crossed.

 

[Basher]

Its easy to forget the stress and constant checking, research etc. Sometimes even just doing overtime at work might be better!
Always FOMO too more you check forums.

Wise choice. I'm getting to this point too. Not there yet. But close.

I've just had my papers through telling my about my work place share scheme.
If it stays at current price will be able to build that conservatory in 3 years with no loan. Fingers crossed.

Feel the same here. I've just opted by funds instead, a couple of tech funds and Vanguard 80/20 and will sit on them for 5-10 years minimum.

 

[Fusion]

Tesla up at $441, so the great sell off didn't last long. Their hype just isn't subsiding, particularly with "Battery Day" coming up.