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  • FIRST POST
    • rjwr
    • By rjwr 31st Jul 16, 8:08 PM
    • 313Posts
    • 202Thanks
    rjwr
    Stocks & Shares ISA
    • #1
    • 31st Jul 16, 8:08 PM
    Stocks & Shares ISA 31st Jul 16 at 8:08 PM
    Hi Everyone,

    Could anyone briefly explain the security with a stocks and shares ISA. The information i can find from research is the funds are directly invested in the stock market so there is a chance that i could
    end up with less than i put in the account.

    Will i ever be in a situation where i could lose all my investment via this method?

    Can a stop order be put on the ISA much like buying normal shares?
Page 1
    • Linton
    • By Linton 31st Jul 16, 8:26 PM
    • 8,502 Posts
    • 8,450 Thanks
    Linton
    • #2
    • 31st Jul 16, 8:26 PM
    • #2
    • 31st Jul 16, 8:26 PM
    With stock market funds there is a reasonable chance that you will end up with less than you started with, particularly in the short term, say 0-5 years, because of economic downturns. In 2007-9 some funds dropped by 40% or more. That is why we say that S&S investing is for the long term (10+ years) when underlying trends overtake the short term fluctuations. The 2007-2009 falls were largely recovered within 3 years.

    If you invest in one company's shares and that company goes bust you probably lose everything. That is why most private investors use funds which invest in perhaps 100's of different companies. The chance of 100's of companies going bust is infinitesimal barring economic Armegedon. To further decrease the risk it is sensible to use funds, or a set of funds, that invest broadly across the world. Investing in a wide variety of different companies and other types of investment is referred to as "diversification" and is an essential tool for the investor.
    • rjwr
    • By rjwr 31st Jul 16, 8:34 PM
    • 313 Posts
    • 202 Thanks
    rjwr
    • #3
    • 31st Jul 16, 8:34 PM
    • #3
    • 31st Jul 16, 8:34 PM
    Thank you for the reply. Would you know if i can put a stop loss order on the isa like when i purchase shares through markets.com or similar?
    • slowpoke rodriguez
    • By slowpoke rodriguez 31st Jul 16, 9:22 PM
    • 298 Posts
    • 238 Thanks
    slowpoke rodriguez
    • #4
    • 31st Jul 16, 9:22 PM
    • #4
    • 31st Jul 16, 9:22 PM
    Buying shares within an ISA is just like buying shares outside an ISA, but tax free! So yes, if your current broker offers a stop loss provision they will do the same with an ISA if they offer one.
    A single fund ISA may be a different matter.
    What ISA are you thinking of?
    • rjwr
    • By rjwr 31st Jul 16, 9:36 PM
    • 313 Posts
    • 202 Thanks
    rjwr
    • #5
    • 31st Jul 16, 9:36 PM
    • #5
    • 31st Jul 16, 9:36 PM
    im a new, inexperienced investor. ive bought shares via markets.com and done ok, but this is the first time im looking at large chunks of disposable being put somewhere other than a regular isa.

    its through a firm called abbott associates. looking at the bumph ive got several option.

    ill read further and come back shortly
    • Linton
    • By Linton 31st Jul 16, 9:38 PM
    • 8,502 Posts
    • 8,450 Thanks
    Linton
    • #6
    • 31st Jul 16, 9:38 PM
    • #6
    • 31st Jul 16, 9:38 PM
    You cant put a stop loss on most funds as their price is calculated a day or more after the event - they arent realtime. However, some funds known as "Investment Trusts" are simply normal companies that invest in other companies. So you could put a stop loss on an Investment Trust. Whether its a sensible thing to do is another matter.

    The only difference between an ISA and any other broker's account is that ISAs are tax free. Some brokers offer stop losses, some dont.
    • jimjames
    • By jimjames 31st Jul 16, 9:39 PM
    • 12,194 Posts
    • 10,711 Thanks
    jimjames
    • #7
    • 31st Jul 16, 9:39 PM
    • #7
    • 31st Jul 16, 9:39 PM
    You might want to read up on www.monevator.com. I've not heard of the company you mention, it's certainly not one mentioned here very often. What exactly are they offering? Many people use funds to invest rather than directly in shares unless they have very large portfolios.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • rjwr
    • By rjwr 4th Sep 16, 8:53 PM
    • 313 Posts
    • 202 Thanks
    rjwr
    • #8
    • 4th Sep 16, 8:53 PM
    • #8
    • 4th Sep 16, 8:53 PM
    so this s&s isa is with standard life via an IFA.

    i still havent put any money in, i'm not entirely sure if its right.

    However after reading lots of posts on the boards, im going to put £100 a month in a S&S ISA and the rest i have available in a cash isa starting the beginning of October.

    ill come back in a few years and tell you how its going. (if i remember)
    Last edited by rjwr; 04-09-2016 at 9:28 PM.
    • Pincher
    • By Pincher 4th Sep 16, 10:23 PM
    • 6,516 Posts
    • 2,491 Thanks
    Pincher
    • #9
    • 4th Sep 16, 10:23 PM
    • #9
    • 4th Sep 16, 10:23 PM
    Keeping some powder dry, in case the market drops, and then you transfer from the cash ISA into S&S ISA, and buy in cheap.

    So cool and logical, are you an AI?
    • rjwr
    • By rjwr 13th Nov 16, 12:07 AM
    • 313 Posts
    • 202 Thanks
    rjwr
    ok so two months in and two deposits of £100. small amounts but will see what happens,

    im a first time investor, whats an AI?
    • Eco Miser
    • By Eco Miser 13th Nov 16, 6:19 PM
    • 3,181 Posts
    • 2,948 Thanks
    Eco Miser
    Artificial Intelligence. As in numerous science fiction synths, androids, robots, and some real computer programs.
    Eco Miser
    Saving money for well over half a century
    • Wiggy55
    • By Wiggy55 13th Nov 16, 8:23 PM
    • 1 Posts
    • 0 Thanks
    Wiggy55
    Hi does anybody know of any good Brokers they use or where I can find out the good ones as I wanted to try doing a small few trades in the Binary market. I get a lot of e-mails for promoting them but I don't know if I can trust them or not. If anybody can give some advice I would be grateful. Thanks.
    • ColdIron
    • By ColdIron 13th Nov 16, 8:25 PM
    • 3,582 Posts
    • 4,296 Thanks
    ColdIron
    If anybody can give some advice I would be grateful. Thanks.
    Originally posted by Wiggy55
    Don't get involved in binary trading
    You're welcome
    • ChesterDog
    • By ChesterDog 14th Nov 16, 9:30 AM
    • 800 Posts
    • 1,447 Thanks
    ChesterDog
    I get a lot of e-mails for promoting them but I don't know if I can trust them or not.
    Originally posted by Wiggy55
    I do.

    You can't.

    You're welcome.
    I am one of the "Dogs of the Index".
    • bigadaj
    • By bigadaj 14th Nov 16, 6:10 PM
    • 10,737 Posts
    • 7,025 Thanks
    bigadaj
    Hi does anybody know of any good Brokers they use or where I can find out the good ones as I wanted to try doing a small few trades in the Binary market. I get a lot of e-mails for promoting them but I don't know if I can trust them or not. If anybody can give some advice I would be grateful. Thanks.
    Originally posted by Wiggy55
    Here's a good alternative to binary options.

    Find a mate who likes a punt, put £5 each down and then toss a coin and one of you call heads or tails. One of you then wins £5 from the other, carry on as long as you want.

    No guarantee you'll win of course but if you don't at least your mate will have your money rather than a nameless firm of dubious credibility.
    • bostonerimus
    • By bostonerimus 7th Sep 17, 1:50 AM
    • 1,133 Posts
    • 644 Thanks
    bostonerimus
    If you use something called an "Exchange Traded Fund" you'll get the diversification of a mutual fund and intra-day trading too. You can always have your own stop loss on any investment just by paying attention and having target price.
    Misanthrope in search of similar for mutual loathing
    • bostonerimus
    • By bostonerimus 7th Sep 17, 1:52 AM
    • 1,133 Posts
    • 644 Thanks
    bostonerimus
    Hi does anybody know of any good Brokers they use or where I can find out the good ones as I wanted to try doing a small few trades in the Binary market. I get a lot of e-mails for promoting them but I don't know if I can trust them or not. If anybody can give some advice I would be grateful. Thanks.
    Originally posted by Wiggy55
    Direct such emails to your SPAM or TRASH folders. Ignore all unsolicited promotions.
    Misanthrope in search of similar for mutual loathing
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