Let’s blow 5K on BP Shares

hodd

Assuming you have 5K and can afford to lose it, how risky can it be?

For the first time in a month, the price has dropped below 400, which is a nice round (albeit meaningless) number.

BP is a Blue Chip company, and this current situation will be (sadly) forgotten soon.

I have a shiny new Hargreaves Lansdown online account.In my case, I have 50K I want to store for three years. I think my 5K of BP shares can only grow in that time.

Any thoughts or trying to talk me out of it? Right now (15 minutes ago), the price is 397.60.

Masomnia

Sounds like you're aware of the risks, can afford to lose the money...

If you've done the research and you're happy with it, why not?

hodd

The market's closed around that price.

I can place an order (fill and kill) now. The HL site gives warnings about the market's volatilty at opening time, but barring great news between now and then, can the price really shoot up and leave me unknowingly buying at a much higher price.

Like most of us, I have a real job so can't monitor the price all day.

turbobob

It can happen where the price "gaps up" at open (or gap down for that matter). For example, due to some company specific news or because of the market in general (say the US and Asian market rally strongly later). A limit order could be used to set a maximum price you are willing to pay.

DiggerUK

hodd wrote: »

.........I have a shiny new Hargreaves Lansdown online account.In my case, I have 50K I want to store for three years. I think my 5K of BP shares can only grow in that time......

Was in a similar situation a while back.
First some background, me and Mrs.D are safe for the future with a bit of spare.
Looked at BHP, RTZ and XTA, and still am checking.
Also checked out coal and wheat/cereals as I suspected they would do well.
Bit of an understatement with wheat, seems that two black swans gave birth to a ginormous golden swan baby.

However.

Still felt that if I was going to gamble I would wait for some four legged horses to come along. I would suggest you do the same and leave your cash were it will get best rate for now.
My tea leaves are telling me that the worst for equities, including BP, is still to come.
Then it might be prudent to gamble, but not now.

Best of fortune.

hodd

Indeed.

My 50K is earning 3% at the mo.

I think I can afford to gamble with 10% of that. If BP goes bust tomorrow, and that isn't going to happen, I will live.

Just stuck 6K, asking for 398 in the morning.

DiggerUK

hodd wrote: »

........... If BP goes bust tomorrow, and that isn't going to happen.......

Not a question of BP going bust, the question is if it is a wise, or a wild gamble.
The writing is on the wall that the recession is going to deepen, buy on the big dipper.
Sit tight, why p1ss it up the wall.

hodd

I won’t argue that the recession might deepen, although I am based in bullish Germany. My UK IFA recommended I stick my 50K into a glossy offshore managed funds account for five years. About the only thing that wouldn't go down are the fund managers' fees, about which I am gobsmacked. The investing public deserve a much better illustration of how much these fees will devastate returns.

So my 50K (only 44K now) will sit in an Investec High 5 (currently a whopping 2.91%). The other 6K will be at the mercy of BP.

JamesU

Which HL account have you opened? Presumably also a a non-ISA account if you are resident in Germany?

JamesU

DiggerUK

hodd wrote: »

I won’t argue that the recession might deepen, although I am based in bullish Germany.....

Speaking of Germany, I am of the opinion that the recent "best growth figures in decades" don't pass the smell test.
What say you from the inside.

hodd

JamesU wrote: »

Which HL account have you opened? Presumably also a a non-ISA account if you are resident in Germany?

JamesU

Good question. I’m a Brit in Germany and wanted to take a gamble on this BP share misfortune (for the people, fish, turtles and birds I mean) and opening any sort of UK-based share dealing account proved tricky. Most dealers required utility bills and the usual stuff that comes with being a UK resident and which I couldn’t provide.
HL were happy to let me open a HL Vantage Fund & Share Account. So I did. I could have used my German bank account to buy BP shares, but the fees seemed high (70 euros) and the accompanying bumph would’ve taken months to read.