Buying shares advice

rickypatel89

Will do, Ark Welder, I know you're quite experienced in terms of investing, would you happen to have any opinion with regard to my strategy in post 10.

rickypatel89

Im not really looking for High Div Yield stocks, I'm looking for shares which have the potential to grow, I think that was my reasoning behind BP.

Ark_Welder

rickypatel89 wrote: »

Will do, Ark Welder, I know you're quite experienced in terms of investing, would you happen to have any opinion with regard to my strategy in post 10.

Thanks. No comments on the shares, though. I prefer collectives for the majority of my holdings and have only a few individual holdings.

What I will say is if someone does recommend a share (or fund) then find out their reasons for doing so - whether they hold it or not, or even their reasons for rejecting a particular share. But always be sure of your own reasons for holding a particular asset.

And when you do buy, remember to work out the price of each share after stamp duty and commission has been applied: this will give you a more realistic view of how you are doing than just using the ask price of the purchase.

rickypatel89

Hi, I think I'm going to top-up Diageo & Tesco with £500 each, and put £1000 in RDSB & ITP.

RoyBrock7898

My strategy is to aim for 1/3 in trusts and 2/3 directly invested. I then aim at a base value of around £500 per share. I go for high yield and low price. BP was an exception which I will explain.

Having invested in a high yield stock that it near the bottom of its 12 month range I look for both growth and yield. I am aiming at a basket of around 36 different trusts and shares. I presently have 32 of which 6 are trusts. As shares have varied daily some have fallen and some have risen as they effectively counter balance from adventurous to cautious.

Where I have less than £500 in one share then I will continue to buy that share provided it remains a good buy. When BP dropped like a stone I continued to buy in. Same with Thomas Cook. With pound/cost averaging my holding has been increased and the average price paid has dropped. With BP I am 9p down but more than made up in dividends. Same with Cable and Wireless, 11p down but more in ddividends. Thomas Cook is finger's crossed although my average price has halved. Vodafone otoh I would like more but they have risen 50%. Same with GSK up 33%.

Shares only cost 0.5% to buy and I minimise my dealing costs buy using iii.co.uk regular investment where they invest on the 23rd for £1.50 per trade. I can spread the buy in one company over 6 months if I wish and still pay less than a one-off trade. I can stop if the price moves too much.

RoyBrock7898

III have a regular investment plan and like Self-Trade invest on one day each monthat a cost of only £1.50 per trade. This is the 23rd. The following from III covers what happens if the 23rd is a non-banking day.

In the event that the regular investment date does fall on a non-banking day the funds will be taken the day earlier and the investment order will be enacted the day later so to give a few working examples:

-The 23rd is a Sunday: The funds for investment will be taken on Friday 21st, the investment order executed on Monday 24th.

-The 23rd is a Bank Holiday Monday: The funds are taken on Friday 20th, the investment order executed on Tuesday 24th.

RoyBrock7898

More good news from III (not). They have a backlog crediting dividends to your account. They hope to credit dividends posted on 8 Nov by the 20th. You cannot reinvest until the dividends show in the account.

mystic_trev

RoyBrock7898 wrote: »

When BP dropped like a stone I continued to buy in. Same with Thomas Cook. With pound/cost averaging my holding has been increased and the average price paid has dropped. With BP I am 9p down but more than made up in dividends. Same with Cable and Wireless, 11p down but more in ddividends. Thomas Cook is finger's crossed although my average price has halved.

Sorry Ray, looks like you've bought your Christmas Turkey early this year.

http://online.wsj.com/article/SB10001424052970204531404577053513218206798.html