MSE News: Respite as FTSE rises slightly

cepheus

gadgetmind wrote: »

These panic dips on even the slightest bit of bad news had been great for those looking to buy shares in solid companies at bargain-basement prices. However, some shares on my watch list, such as National Grid, have barely twitched, which is most annoying. Can we have a dip down to FTSE100=3500 some time next week?

I remember the technology stock enthusiasts saying the same back in 2001.

gadgetmind

cepheus wrote: »

I remember the technology stock enthusiasts saying the same back in 2001.

I use very different approaches when buying tech shares versus defensive shares. With tech shares, I only buy what I understand, and I need to see valuable and well-protected technology with a high barrier to entry, a solid business model, and a plausible route to market. As a result, I have done *very* well from tech shares over the last decade, and my daughter's portfolio, which was bought for a very modest sum a few years back, will now pay her university fees twice over.

I suspect that most of those who lost big time back then didn't take the time to do their research and just followed the thundering herd off the edge of the cliff.

The only drawback of my approach is that I only have the time to fully research a handful of companies, which does leave me rather exposed. However, only one of my handful has failed (prepack administration sucks!) and two have gone well past "ten bagger" territory.

pqrdef

And at the end of all that, the Footsie finishes up on the day, contradicting everything the pundits have been saying all day.

gadgetmind

pqrdef wrote: »

And at the end of all that, the Footsie finishes up on the day, contradicting everything the pundits have been saying all day.

That's been the way of things in most of the recent flash dips, which seem to come along about twice a month. I've found that buying around midday works well, so I set cheeky limit orders later morning and the emails usually arrive by 1-2pm.

I'm expecting it to be late 2012 or 2013 before I know whether this is going to play out as I expect as my crystal ball is at the cleaners.

lvader

Be careful of the dead cat bounce. Markets won't be content to wait a month for a solution.

gadgetmind

lvader wrote: »

Be careful of the dead cat bounce. Markets won't be content to wait a month for a solution.

Bounces are a sentiment thing and are as such best ignored.

sabretoothtigger

Short sellers must buy back the shares at some point. I think they will try to sell more next week.

4500 is the big target but I would be surprised if we got there and stayed there as so much of FTSE has earnings in countries with strong growth, so far this is just fear not actual balance sheet losses

moneylover

gadgetmind wrote: »

I've found that buying around midday works well, so I set cheeky limit orders later morning and the emails usually arrive by 1-2pm.

I'm expecting it to be late 2012 or 2013 before I know whether this is going to play out as I expect as my crystal ball is at the cleaners.

As you have already paid for your daughters education with your investments you dont need your crystal ball any more. As it appears quite a good one, can I have it?

Can I ask about limit orders with your broker -can you set several for different shares and attach the same one sum of money to each of them or does the money get tied to an order? Eg if you have £3000 could you put this one sum on say, BP, NG, VOD etc and see which one goes through first, the rest failing? I am sure this was possible a couple of years ago when I used Selftrade but having come back to investing I am now with X-O and they attach the money to an order and you cannot put the same money against any other order as well.

stringer_bell

so is now a good time to add to my funds in my ISA? top them up so to speak

gadgetmind

moneylover wrote: »

As you have already paid for your daughters education with your investments you dont need your crystal ball any more. As it appears quite a good one, can I have it?

My stake at that time wasn't very high and late 2008 and early 2009 were great times to have some cash lying around. Buying bombed out shares is always risky, but no more so than buying other shares IMO, as long as you do your research. Of course, with the mega caps, much of the research has been done for you, so you just need to decide which of it to believe and decide what to acquire when.

Can I ask about limit orders with your broker -can you set several for different shares and attach the same one sum of money to each of them or does the money get tied to an order? Eg if you have £3000 could you put this one sum on say, BP, NG, VOD etc and see which one goes through first, the rest failing?

This is how to works with HL - they money is only taken from your cash account when the trade goes through.

I've definitely bought for much cheaper than if I'd done a RT trade at the time of setting the order. I could have got even lower by lurking at the screen, but I just can't dedicate that much time to it, and these are long term yield plays so the price isn't uber-critical.