HSBC InvestDirect Newbie

karldenton

Hi,
I bank with HSBC and have also opened an InvestDirect account.

I notice there is £10,200 in the account.

Basically what I would like to do is use a small amount from my current account (say £100) to buy some shares. When the shares hopefully increase in price and I would like to sell them I would like the £100 plus whatever they have made (obviously less the £12 costs) to go back into my current account.
Is this possible ?
Also, anyone have any tips on sectors that might rise over the next 6 months. Mining seems to be doing well and I'm guessing with Christmas coming up technology might do to.

Thanks

dunstonh

£12 buy and £12 sell (plus stamp duty) would mean you would have to make well above 20% gains just to break even. It is unrealistic to do share dealing with just £100 with those sorts of charges.

I'm guessing with Christmas coming up technology might do to.

Why?

karldenton

Ah right. When you put it like that it's true. What's the £10,200. Is it like credit that they lend you? Or do you have to have initial funds already? What is the minimum you would recommend dealing with with those charges?
Thanks

Rollinghome

dunstonh wrote: »

Why?

Because with all those City office parties going on anything could happen. Be sure to sell before they're sober.

gmgmgm

OP, I really think you should spend a lot more time reading up on "investing" before putting any of your hard-earned money into shares. Best of luck.

Loughton_Monkey

karldenton wrote: »

I bank with HSBC and have also opened an InvestDirect account.

I notice there is £10,200 in the account.

So you have opened a share account, and for some strange reason have put cash to the equivalent of your ISA limit in it.

Why?

jimjames

karldenton wrote: »

Hi,
I bank with HSBC and have also opened an InvestDirect account.

I notice there is £10,200 in the account.

Have you checked your other accounts? I assume this money hasn't appeared from thin air and if it is in your InvestDirect account then it has most likely been taken from another account.

The amount quoted is the exact total for an Shares ISA so are you sure this isn't what you have opened? It seems a strange figure to use if not.

gt94sss2

karldenton wrote: »

Hi,
I bank with HSBC and have also opened an InvestDirect account.

I notice there is £10,200 in the account.

No there isn't.

HSBC InvestDirect have a getting started guide on their website - I suggest you read it.

£10,200 is your initial 'dealing limit' - think of it as a credit limit - which is the total amount of unsettled transactions they will allow you to have at once.

You would still need the funds in your bank account to pay for any shares brought on the relevant settlement day.

Regards
Sunil