UK Stockmarket 2009 and beyond

black_taxi_2

do you use a stop/loss on shares portfolio---medium/longterm?

thx

Thrugelmir

black_taxi wrote: »

do you use a stop/loss on shares portfolio---medium/longterm?

thx

Personally favour collective investments in the main such as investment trusts to obtain the exposure that I'm seeking. So sell infrequently. Use dividend income to top existing holdings or diversify further. Totally depends where I consider value to be. As I tend to be contrarian in my approach.

I work on the basis that majority of the long term gain will be generated by dividend growth. Not on the performance of share price. As majority of individual companies tend to have limited life cycles.

black_taxi_2

collective trusts--nice1

divercification right away diff sectors

tradetime

black_taxi wrote: »

was watching a chartist on tv yesterday

brilliant at showing past reasons why market changed---but asked where market would be 6 months---hedged his answers

Charting, or more appropriately termed, technical analysis does not provide a crystal ball view of future markets, nothing does. It merely provides a guide to the likely course of the market based on all the current available information and resulting expectations, thus any forecast would be subject to revision should new information arise that contradicts or conflicts strongly eonough with the information to date. The real value of technical analysis imo is not in long term forecasting, but rather providing a trader with visual reference points that allow him to arrive at tradable conclusions and manage those trades.

black_taxi wrote: »

how do you protect your share portfolio if market changes suddenly

say you have 6 shares invested--companies are solid ---been rising slowly but surely

market changes direction --downwards

how do you protect your portfolio shares

im a beginner and sorry of im asking daft questions

thx

black_taxi wrote: »

how do medium traders protect there shares

ie the naked trader/robbie burns

he works a tight stop/loss losers with a trailing stop/loss rising shares

thx

black_taxi wrote: »

do you use a stop/loss on shares portfolio---medium/longterm?

thx

You have to be a little careful here. Generally speaking I would say an investor forms a long term view of a company based primarily on fundamental analysis, such as the quality of the management team, the position of the company within its area of expertise relative to the competition, the state of its balance sheet, quality of earnings, and countless other factors and influences. This leads the investor to some expectation of valuation, both present and future. Consequently, unless something fundamental changes which would cause him to revise his current or future expectations he would in theory be justified in maintaining his investment regardless of short term price falls. Indeed to employ a stop loss, which is essentially a technical tool placed in the market relative to technical analysis would potentially do more harm than good.

Essentially I would say stop losses are a technical tool used by those traders who entered the trade in the first place for technical reasons.

black_taxi_2

Say you buy--investment trust shares to put in your stock/shares isa

ie---in lump sums £2500 diff areas

what are the yearly charges?

wouldnt each fund hav a diff one

ie. 0.65% 1.50%

thx

JamesU

BlackTaxi, you might want to pick up the two books below if you have not read them. Thoroughly enlightening reads and provide a really good overall perspective according to what you want to achieve.

http://www.amazon.co.uk/Smarter-Investing-Simpler-Decisions-Results/dp/0273722077/ref=sr_1_1?ie=UTF8&qid=1297002759&sr=8-1

http://www.amazon.co.uk/Financial-Times-Guide-Exchange-Traded/dp/0273727834/ref=sr_1_1?ie=UTF8&qid=1297002966&sr=8-1

JamesU

black_taxi_2

those two books look great---thx

sabretoothtigger

Its a bit Orwellian but seems that SB thread has disappeared.
I was just going to add a detail on dividends, BP goes ex tomorrow and I got paid 4.35 for every 100 shares held today which is a nice benefit even though the trend for BP appears down for now. I think they are not overvalued (comparatively) so bought a bit more before close today


LSE appears likely to merge with TMX is news emerging tonight, thats Canada. Quite like that idea as Im keen on a few Canadian prospects, maybe it will be easier/cheaper for us to take an interest in such a vast unoccupied and unexploited area

CSCO done well since I looked at it, results soon I think. Looking at CREE

RRL surging up, SKR knocked back, EMED drifting. Premier sealing off a well, encore as a partner loses 20% but this is only really their recent gains anyhow


SP500 is up yet again but its on half the volume it should be.

Major_options_player wrote:

there is a possibility i will go flat SP500 tonight on Timer Digest'

do you use a stop/loss on shares portfolio---medium/longterm?

thx

nope. Some people talk about passive stoploss or manual which just means decide when yourself I think. Im not against that but otherwise:

“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”

black_taxi_2

saber if you buy a value share for longterm and if market turns downwards---do you buy more

also if the market hasnt turned but share has dropped 25%---will you sell?

thx

sabretoothtigger

Nope, I wouldnt sell after its dropped 25% unless I thought maybe it would drop another 25% You could go back to BP 12 months ago, do that on google and it matches price to news stories

Price isnt that important, buy shares like you buy at the supermarket. You like the product or not is most important.
I cant tell you what you should like, obviously this is all about you in the end and I like junk food anyway Read lots and compare to price (and volume)

Short story would be read and/or watch everything by Warren Buffet and understand what he thinks, he been right over half a century almost no one can say that.