I wish I'd never got into this its way above my head!!

ADELE244

Hi guys,

Im really going to sound really stupid here, A: for getting into something I just dont understand, B: Still not really understanding it.

I thought I would give this all stocks and shares things a bash. I thought had got it sussed in my head, but I havent got a clue what to do with them now.

I bought 862 units and they cost me £69.94 (but Im sure I have to pay £10 to buy and possibly £10 to withdraw) the shares were with Petroceltic and I think they were 6.9p I got them through Hargreaves - Landsdown. On my portfolio it says they are now 11p and and value is £94.82.

Now the complete thruth is I am stuck, I havent got a clue what to do next (I know its not alot of money). I also know it is a risk I take when to cash in etc,

Could someone give me a sort of advice of what to do - ie:a sort of platform to work on. I was sort of thinking if I am lucky enough for them to double, thats when I would cash them in - or is this expecting too much or too little?

Oh dear I really havent got a clue, I think I have dabbled with something way above my head!!

Any guidance would be greatly appreciated. Thank you xxx

Jonbvn

IMHO, the small amount of money you have invested and any profits will be eaten up by dealing costs.

I would suggest you look at something slightly less complex such as unit trusts, where you can invest in a spread of different shares.

Reaper

Yes, you were unwise to buy shares when you had so little money to invest. With small sums the dealing charges make profits hard to achieve.

In normal times hoping shares will double in value is very optimistic. However these are volatile times and you have done well so far so you might well get lucky.

Your shares have achieved 60% growth yet you will only make a 20% profit if you sell now because of the charges.

Considering that and as long as it is money you don't mind losing then what the heck - why not hold on and see if they double in value before selling.

But in future please check the dealing charges before buying.

Nosht

If they cost you 6.9p. & are now at 11p. then you have made a gross profit of 4.1p. per share. The 11p. will probably be the mid-price (as shares are quoted at a buy price & a sell price) so if you sell the price will probably be about 10.5p. or thereabouts making a smaller gain.
As Jonbvn has stated the dealing costs will probably wipe out any profit.
But, well done, you have not lost.
Dealing in small quantities of shares usually means that any profit is swallowed up by dealing charges. To make it worthwhile a £1000 minimum trade is gives more scope.

Regards,

N.

opinions4u

What you've done is to dabble in shares on a very small scale.

This is the best way to start and to build up an understanding and a portfolio.

As others have pointed out though, dealing charges can wipe out profits on a low value investment.

Questions that you need to ask yourself:

- did I get a buzz out of making a profit on shares?
- do I have more money I can invest this way (and afford to lose)?
- could I make a hobby out of this?

If the answer is "yes" to these three questions then I'd sell what you've got and start from scratch with Halifax Sharebuilder. This allows you to buy for £1.50 a time (although not in real time) and sell for £5 if the value is less than £250 (the sale is a real time sale).

Even with those low dealing charges you don't want to have lots of different low value shares. You probably want to build up 3 or 4 shares over a period of months and only consider selling when your gains are in the £hundreds. Don't be surprised if you lose a few quid here and there as well!

If you really don't want to carry on, sell up and get out.

It's a hobby I thoroughly enjoy, but don't deal too often!

ADELE244

Thanks sooo much for replys, all make total sense to me. It sounds like I didnt take in to account the charges for such little investment.

So really 60% growth is good, but my mistake was too little for the high charges

But yes I have enjoyed it, keep looking at it seeing it go up. I only did it because one of our customers (we repair laptops for living) told me that it was a good bet.

I wouldnt have a clue who to next dabble with, I will just have to hope the same customer comes back and gives me another tip!!! next time it will be a larger amount and will look into the Halifax one.

Thanks again, I now know my errors..................Adele x

agsnu

If you're relying on share tips from customers rather than forming your own views, then shares are not for you.

JoeCrystal

Indeed, investing by tips is sure way to utter losses! Research everything, read annual reports as well and news! That is the requirements. FSTE100 shares can be a good start. When back in april and may with halifax sharebuilder, i chose ten companies that is most likely to be still around in 15 years, and research everything on them. Hopefully it will go well for me

cloud_dog

Adele224, it sounds to me that what you might want to do is.......

Set up a virtual portfolio, which you can pretend to trade with (buy / sell) and keep a record of how you do; you must record all costs so, buy / sell charges plus stamp duty where relevant.

In the meantime you could set up a building society account savings account using a regular saver and start to build a more realistic stake (amount to invest)

or

Choose a fund (Unit Trust / OIEC) to invest in by using a monthly investment option, i.e. like the BS regular saver but it buys units in an investment.

a7man

Unless you have the money to lose and enjoy a bit of a gamble in which case go ahead!

Trollfever

A: for getting into something I just dont understand, B: Still not really understanding it.

You are in good company.:D


Were you running the UK Banks and Building Societies?



.