Have I just blown my money?

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
14 replies 1.8K views
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  • p00hsticksp00hsticks Forumite
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    Atkins wrote: »
    A week or two later and I'm already £40 down.

    As there's usually a spread between the buying and selling price, and you presumably paid a trading fee and stamp duty on the purchase, chances are that the bulk of this is what you would have been down immediately after you bought.

    I agree wit the others - if you can't cope with the thought of making a loss, then S&S isn't for you.
  • CLAPTONCLAPTON Forumite
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    Atkins wrote: »
    Thanks everyone,
    I wasn't planning on spending this money anytime soon so I'll just leave it for a few years and see how it gets on. I was expecting to see a change of a few quid up or down, not £40 in a few weeks. £40 a week for 5 years doesn't leave me with much money left. Like I said I'm totally new to this, I'm finding it interesting but slightly worrying as I seem to have little control over what happens from now on.
    Cheers for the advice/links etc


    how much have you invested

    what did you buy
  • edited 29 January 2014 at 2:29PM
    jimjamesjimjames Forumite
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    edited 29 January 2014 at 2:29PM
    Atkins wrote: »
    I was expecting to see a change of a few quid up or down, not £40 in a few weeks. £40 a week for 5 years doesn't leave me with much money left.

    Assuming you have bought funds not individual shares then the chances of it dropping to zero are virtually nil. You can't extrapolate out from one week to what will happen over the next 5 years.
    Atkins wrote: »
    Like I said I'm totally new to this, I'm finding it interesting but slightly worrying as I seem to have little control over what happens from now on.

    You have absolutely no control over the direction of markets. About the only person who would is the head of Federal Reserve.

    The key thing is not to sell out just because markets have fallen as that is the guaranteed way to lose money. Keep invested through thick and thin, reinvest dividends and over the long term your investments will increase.

    Even since 1999 when the UK markets were at their previous peak anyone investing on that day till now would still be around 60% up with reinvested dividends despite the FTSE still being lower.

    This is quite a good graphic showing new investor reactions
    investor-psychology-illustrated.gif
    Remember the saying: if it looks too good to be true it almost certainly is.
  • sorcerersorcerer Forumite
    878 Posts
    Atkins wrote: »
    Thanks everyone,
    I wasn't planning on spending this money anytime soon so I'll just leave it for a few years and see how it gets on. I was expecting to see a change of a few quid up or down, not £40 in a few weeks. £40 a week for 5 years doesn't leave me with much money left. Like I said I'm totally new to this, I'm finding it interesting but slightly worrying as I seem to have little control over what happens from now on.
    Cheers for the advice/links etc


    Think of it as an opportunity to buy more at a cheaper price.
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