Stocks and Shares ISA question

Voyager2002

surfer9 wrote: »

I am going to be investing in companies that have massive potential. Penny stocks which can go up ridiculous amounts. There are plenty of good sources out there on the internet that give out free, extremely detailed information about companies that are undervalued and that are going under the radar that are for example mining juniors with clear evidence that something big is under their feet. Another example is technology companies that have a new technology which is highly likely going to turn into massive contracts.

I think you need to get real...

There are plenty of sources that give out this kind of information. Generally they are run by people who have a holding of the share in question and promote it in order to increase the price and sell at a profit, after which the share returns to its usual price. And the transaction costs of dealing in this kind of share are massive.

Do yourself a favour: go to a mainstream broker's website and set up a dummy trading account. Give yourself a fixed budget of "virtual money"; make the actual trades that you plan to make; see how much you have made or lost after a year.

coyrls

surfer9 wrote: »

So you can leave the profits in the ISA and reinvest the profits without being taxed on any of it.

So say invest £15k, that investment turns into £25k, you sell the stock and reinvest the 25k in another stock, the £25k turns into £50k, you then sell and reinvest again and so on and all the time you don't pay any tax on any of it?

Yes that's right, as I say all you have to do is identify the right stocks. You think that you can; I think you are mistaken.

verybigchris

surfer9 wrote: »

There are plenty of good sources out there on the internet that give out free, extremely detailed information about companies that are undervalued and that are going under the radar that are for example mining juniors with clear evidence that something big is under their feet. Another example is technology companies that have a new technology which is highly likely going to turn into massive contracts.

I have been researching for the past few months and have had it proved to me that many sources online give out proven advice. I have seen them informatively talk up a company and express the potential a company has and then the stock has gone skyrocketing.

I came across an article just yesterday which was written 1 week ago about a stock which has the potential to go x50 over a few years. I checked it out and annoyingly it had already gone up massively just 2 days earlier. Was $0.07, it's now $0.30 and expected to get to $3.

That's called "pump and dump". You pick a small company, buy a holding in it and then advertise what a fantastic opportunity it is. You get the word out to as many people as possible: blog posts, website reviews, social media, spam emails, investment forums, etc.

Because you're giving out the info for free, some people don't think it's part of a scam. After all, it's not like they're paying for your tips. They look at the share price and see that, sure enough, it's on the way up. Of course, that's because it's an illiquid stock and your earlier purchase caused the rise, but they don't know that.

So they go ahead and buy, as do a few others, and demand edges the price higher still. They don't realise that the stocks they're buying are the ones your selling. You take the profit and run, the hype dies down, and when they try to sell their stocks they find there are no buyers left and the price tumbles.

Little downside to it also as the stock had hovered around $0.07 for years and was highly unlikely to drop.

Share price is totally irrelevant in terms of how far your investment can drop.

HappyHarry

I'll give you one right now, I'll prove to you that my sources are spot on:

Nippon Dragon Resources. CVE: NIP

It's going to multiply this year. Come back to me later this year and you can abuse me if I'm wrong.

Ah - I understand now.

This is a Pump and Dump scam - and you're not the innocent investor.

TheShape

surfer9 wrote: »

I have been researching for the past few months and have had it proved to me that many sources online give out proven advice. I have seen them informatively talk up a company and express the potential a company has and then the stock has gone skyrocketing.

You couldn't manage to research how a S&S ISA works?

p00hsticks

surfer9 wrote: »

So say invest £15k, that investment turns into £25k, you sell the stock and reinvest the 25k in another stock, the £25k turns into £50k, you then sell and reinvest again and so on and all the time you don't pay any tax on any of it?

correct - although as other posters have pointed out, you would need to have a very good crystal ball to get that sort of return, and if you say you are going to be investing with very risky stocks, the downside of having them inside is an ISA is that just as any gains are exempt from CTG, you also can't offset any losses....

surfer9

p00hsticks wrote: »

correct - although as other posters have pointed out, you would need to have a very good crystal ball to get that sort of return, and if you say you are going to be investing with very risky stocks, the downside of having them inside is an ISA is that just as any gains are exempt from CTG, you also can't offset any losses....

Thanks for your help. :beer:

ColdIron

surfer9 wrote: »

The massive returns I gave in the example can be returned.
...
I am going to be investing in companies that have massive potential. Penny stocks
...
I'm dumb as a turnip

A fool and his money and all that eh?

Has your extensive research included watching the Wolf of Wall Street

Best of luck

surfer9

p00hsticks wrote: »

you would need to have a very good crystal ball to get that sort of return

I get why that is the general thinking....

1. People in general poo their pants at the word 'risk' so avoid so called 'risky' stocks.

2. People don't have the time or knowledge to understand the smaller cap technology/mining companies as it can get quite complex.

So getting these sort of returns is out of the question in the vast majority of people's minds.

I have plenty of savings, so I am in a good position to invest. I am forced to invest because I cannot afford a house. I am being left behind as house prices rise £15,000 on average per year. I need to beat that £15,000 rise by gaining massive returns so I can buy a house - otherwise in my retirement days I will still be renting and I'll probably have to eat rats for dinner.

I have bet in the past on outsiders and won big. I like this strategy. The stock market is safer than gambling. Gambling you can lose all your money. In stocks you will be unlucky to have all your money wiped out. If a stock goes down you can leave your money in it until it goes back up again.


People would say investing in Facebook is safe and a good idea. It probably is, but I don't have a crystal ball to tell me that their VR technology is going to be a hit. It may be a fad. Facebook may die out as people become bored of it.

You don't need a crystal ball in stocks - you just need to look at the fundamentals of a company.

The company I mentioned in a previous post was 'nippon dragon resources'. This company has gold under its feet, not only that it has invented a drilling machine that can drill 60% more economically than any other drill. It can bring down mining costs by 60%. It has positively been trialled and is continuing to be trialled by many big mining companies. It is expected that these drills will selling like hot cakes in no time. Nippon itself can drill their own land 60% more affordably. Not only all the above - but these machines can be used in construction too!

It's all there in front of us. The fundamentals are there. It's a $0.10 stock. It's going to the moon.

You don't need a crystal ball. It's not like you just pluck a company out the air and hope it does something.

This Nippon Dragon resources company has soooooooo much more potential to grow compared to Facebook. With these massive growth stocks you only have to risk as little as £1000.

So no idea why it's generally thought that these types of stocks are risky....

-You risk a low amount. Yes - your are more likely to lose money compared to putting money on Facebook, but you only need to risk a fraction of your money to get the same returns.

-You can see exactly where many of these companies are heading.


The other company I mentioned that has already gone up massively and is set to go up another x10 at least over the next 1-2 years is called Saint John Carbon.

So there you go....

Place £500 on each and you will have at least £10,000 returned in a couple of years.

jimjames

surfer9 wrote: »

I have bet in the past on outsiders and won big. I like this strategy. The stock market is safer than gambling. Gambling you can lose all your money. In stocks you will be unlucky to have all your money wiped out. If a stock goes down you can leave your money in it until it goes back up again.

I'm afraid your research on shares seems to be on par with your research on ISAs. This last statement is just not true.
Ask a Marconi shareholder how much their shares are worth by waiting for them to go up again.