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  • FIRST POST
    • MrMrMr
    • By MrMrMr 8th Oct 17, 9:17 AM
    • 170Posts
    • 6Thanks
    MrMrMr
    Anyone tried Share Dealing?
    • #1
    • 8th Oct 17, 9:17 AM
    Anyone tried Share Dealing? 8th Oct 17 at 9:17 AM
    Not sure this is correct place, or even if should ask as it's not technically saving money!?!

    Has anyone ever tried Share Dealing? I'm talking less than £500-1000 slush fund for trying it out, trying to maker a little money?

    I know and understand the risks of losing it etc but wonder if anyone tried it and has made money, or is £500-1000 really too low to do anything with and pointless as even if get gains they will be very small?

    I've signed up to Halifax, it's a £12 fee to buy and same to sell so obviously any profits need to take this in to account as well.

    Looking at big companies like Google, Apple etc the shared each, take Apple, are around £120 each so the £500-1000 invested wouldn't buy many shares and so profit would be low.

    So I presume you have to go for lower cost share prices and buy more to get better return?

    Interested if anyone done this or should I be booted off MSE as this is spending money

    Thanks
Page 1
    • Apodemus
    • By Apodemus 8th Oct 17, 9:39 AM
    • 899 Posts
    • 692 Thanks
    Apodemus
    • #2
    • 8th Oct 17, 9:39 AM
    • #2
    • 8th Oct 17, 9:39 AM
    You are being seduced by the dark side...invest some time on reading threads on here before gambling your money.

    But to correct one point... the dealing costs you quote would be 2.4% of your investment, so (ignoring any dividends gained during your holding period) you will need a share price rise in excess of 2.4% to cover your costs. That maths doesn’t change whether you hold 1 share at £1,000 or 1,000 shares at £1 each.
    • buglawton
    • By buglawton 8th Oct 17, 9:45 AM
    • 6,957 Posts
    • 3,198 Thanks
    buglawton
    • #3
    • 8th Oct 17, 9:45 AM
    • #3
    • 8th Oct 17, 9:45 AM
    The only way I 'deal' is buy, hold long term, enjoy dividends and long term capital growth. Very occasional pruning and replanting.
    • frugalmacdugal
    • By frugalmacdugal 8th Oct 17, 9:48 AM
    • 6,132 Posts
    • 5,259 Thanks
    frugalmacdugal
    • #4
    • 8th Oct 17, 9:48 AM
    • #4
    • 8th Oct 17, 9:48 AM
    Hi,

    and it doesn't matter if you buy shares at 10p, £10 or $100, a 10% rise or fall in value is still 10%.
    Y'all take care now.
    • lluzers
    • By lluzers 8th Oct 17, 9:58 AM
    • 116 Posts
    • 13 Thanks
    lluzers
    • #5
    • 8th Oct 17, 9:58 AM
    • #5
    • 8th Oct 17, 9:58 AM
    Not sure this is correct place, or even if should ask as it's not technically saving money!?!

    Has anyone ever tried Share Dealing? I'm talking less than £500-1000 slush fund for trying it out, trying to maker a little money?

    I know and understand the risks of losing it etc but wonder if anyone tried it and has made money, or is £500-1000 really too low to do anything with and pointless as even if get gains they will be very small?

    I've signed up to Halifax, it's a £12 fee to buy and same to sell so obviously any profits need to take this in to account as well.

    Looking at big companies like Google, Apple etc the shared each, take Apple, are around £120 each so the £500-1000 invested wouldn't buy many shares and so profit would be low.

    So I presume you have to go for lower cost share prices and buy more to get better return?

    Interested if anyone done this or should I be booted off MSE as this is spending money

    Thanks
    Originally posted by MrMrMr
    can you try predicting roulette numbers?There is no difference.
    • alanq
    • By alanq 8th Oct 17, 10:10 AM
    • 3,778 Posts
    • 2,427 Thanks
    alanq
    • #6
    • 8th Oct 17, 10:10 AM
    • #6
    • 8th Oct 17, 10:10 AM
    Each time you buy shares you also have to pay Stamp Duty of 0.5%.
    I'm a Board Guide on the Budgeting and Bank Accounts, Savings & Investments, Food Shopping and Over 50s MoneySaving boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com
    • Eco Miser
    • By Eco Miser 8th Oct 17, 1:08 PM
    • 3,079 Posts
    • 2,845 Thanks
    Eco Miser
    • #7
    • 8th Oct 17, 1:08 PM
    • #7
    • 8th Oct 17, 1:08 PM
    can you try predicting roulette numbers?There is no difference.
    Originally posted by lluzers
    Roulette numbers are more predictable than short-term stock movements - they're always in the range 0-36.
    Eco Miser
    Saving money for well over half a century
    • frugalmacdugal
    • By frugalmacdugal 8th Oct 17, 1:09 PM
    • 6,132 Posts
    • 5,259 Thanks
    frugalmacdugal
    • #8
    • 8th Oct 17, 1:09 PM
    • #8
    • 8th Oct 17, 1:09 PM
    Hi,

    mmm, black or red, odd or even?
    Y'all take care now.
    • Alexland
    • By Alexland 8th Oct 17, 1:28 PM
    • 438 Posts
    • 260 Thanks
    Alexland
    • #9
    • 8th Oct 17, 1:28 PM
    • #9
    • 8th Oct 17, 1:28 PM
    Yes you might be better on the gambling or trading forums - we investors like to see a fair risk adjusted return.

    If you really need to get rid of some excess money then please PM me and you can sponsor my son. Every 6 months I will get him to write you a letter to describe how he has spent your money. When he is grown up this memory might confuse him but I will sit him down and explain what you would have otherwise done with the money.

    Now there's nothing wrong with using your new Halifax Share Dealing account for long term fund investing - I have my SIPP with them. Look to make regular payments into funds and the cost per trade goes down to £2 and you will pay no direct stamp duty.

    Alex
    Last edited by Alexland; 08-10-2017 at 1:41 PM.
    • lluzers
    • By lluzers 8th Oct 17, 1:31 PM
    • 116 Posts
    • 13 Thanks
    lluzers
    Roulette numbers are more predictable than short-term stock movements - they're always in the range 0-36.
    Originally posted by Eco Miser
    If he learns by experience , after failing to time markets on buying entries , he can start teaching everybody else how to trade .There is hope he can recover all his trading losses by selling education on trading forums , to new wanna be traders.
    • MrMrMr
    • By MrMrMr 8th Oct 17, 1:40 PM
    • 170 Posts
    • 6 Thanks
    MrMrMr
    I knew the negative comments but this is an account/money that has been saved and just to try out almost.

    I understand it's MSE so was unsure whether to post on here.

    So would I have to tell the taxman every sale I do if there is a profit? How do you do this?

    Regarding dividends how often are these given, it is a standard, or once a year, continuous, so if buy and they give dividends you benefit straight away?

    Understand the 1 share, 10% increase, was bad example from me. I just thought if buying Apple at £120 would only get say 8 shares for £1000, just wondering if better to get more shares from another company to spread better or not?

    Thanks
    • Alexland
    • By Alexland 8th Oct 17, 1:48 PM
    • 438 Posts
    • 260 Thanks
    Alexland
    If the money has been hard earned and hard saved even more reason not to fritter it away in a high percentage of transaction fees and stamp duty.

    Even if you only trade one holding for £750 that's £12.50 to buy, £3.75 stamp duty and £12.50 to sell so you have committed to a cost of nearly 4% already. Congratulations you now have a highly volatile interest in a single company that even the internal management don't honestly know how it will perform.

    I did this when I was younger and it's stupid. At least if you make a loss you stop quickly but it's worse when you randomly make a profit as it re-enforces that the strategy is working and you go on to make greater losses. It's a shame as the losses scare people away and it deters them from making proper investments.

    I have worked in and with big listed companies and they are a mess. Even those an outsider would consider swans are pedaling madly (often in different directions) trying to keep afloat. What skill do you have above anyone else in the industry to pick the one great stock?

    You don't have to make mistakes if you can learn from the experiences of others.

    However in the spirit of being helpful against this crazy activity if you sign up to Halifax Share Dealing special offer emails and you can usually trade once a month for a short window at a reduced price of £3.95.

    http://www.halifax.co.uk/sharedealing/events/

    Also if you are considering trading overseas stocks there are additional steps:

    https://www.halifax.co.uk/sharedealing/investment-options/international-shares/Default.asp

    Alex
    Last edited by Alexland; 08-10-2017 at 7:28 PM.
    • Vortigern
    • By Vortigern 8th Oct 17, 2:26 PM
    • 2,273 Posts
    • 1,473 Thanks
    Vortigern
    So would I have to tell the taxman every sale I do if there is a profit? How do you do this?
    Originally posted by MrMrMr
    The taxman is unlikely to be interested at your proposed level of investment. You'd have to make a gain exceeding £11,300 to be liable for CGT, or receive dividends exceeding £5,000*pa for income tax liability. (*to reduce to £2,000)
    Regarding dividends how often are these given, it is a standard, or once a year, continuous, so if buy and they give dividends you benefit straight away?
    Some are quarterly, some pay twice per year, some annual, some don't pay dividends at all.

    I just thought if buying Apple at £120 would only get say 8 shares for £1000, just wondering if better to get more shares from another company to spread better or not?
    Don't buy shares in any single company. You spread your risk by buying funds. These are collective investments that pool investors' cash and invest in multiple companies. Do some research!
    • jimjames
    • By jimjames 8th Oct 17, 8:36 PM
    • 12,088 Posts
    • 10,532 Thanks
    jimjames
    I knew the negative comments but this is an account/money that has been saved and just to try out almost.
    Originally posted by MrMrMr
    Before you get started do you already have an emergency fund of 3-6 months earnings/expenses? Do you already have a S&S ISA with other investments? Generally anyone investing would already have those things in place before starting to invest in individual shares. The general consensus is that trading is an easy way to lose money, long term buy and hold is far more successful.
    Remember the saying: if it looks too good to be true it almost certainly is.
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