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Understanding stocks & shares ISA
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Just bear in mind that for every share you've researched the background for etc. and have decided to buy, someone else has done the same and decided to sell..
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Alex9384 said:Tucosalamanca said:Good advice from Mark, he even mentions researching and evaluating.
I aim to buy companies which are good enough to keep long term even if they temporarily dip after I buy them
So no stop losses, you're just going to buy and hold as the ship sinks and you hope/pray for a recovery?
Good luck with that... How are you planning to manage risk?
Companies don't always recover, no matter how much you research them or believe that you know better than the market.
As above, be very careful with your money.Thanks. But the same thing can happen to long-term investors. This one is not limited to trading.StopLoss is a double edged sword. It can kick you out of from a position which is not really problematic, like some 1 day dip, realising the loss.2 -
Linton said:Alex9384 said:Tucosalamanca said:Good advice from Mark, he even mentions researching and evaluating.
I aim to buy companies which are good enough to keep long term even if they temporarily dip after I buy them
So no stop losses, you're just going to buy and hold as the ship sinks and you hope/pray for a recovery?
Good luck with that... How are you planning to manage risk?
Companies don't always recover, no matter how much you research them or believe that you know better than the market.
As above, be very careful with your money.Thanks. But the same thing can happen to long-term investors. This one is not limited to trading.StopLoss is a double edged sword. It can kick you out of from a position which is not really problematic, like some 1 day dip, realising the loss.
Luckily, my mother, who had saved all her working life, and probably had a similar figure at her disposal, refused to take the risk, despite huge pressure from the salesman. Her money was earning at least 10% with the building society.
No prizes for guessing who had the least stressful retirement.
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Middle_of_the_Road said:Linton said:Alex9384 said:Tucosalamanca said:Good advice from Mark, he even mentions researching and evaluating.
I aim to buy companies which are good enough to keep long term even if they temporarily dip after I buy them
So no stop losses, you're just going to buy and hold as the ship sinks and you hope/pray for a recovery?
Good luck with that... How are you planning to manage risk?
Companies don't always recover, no matter how much you research them or believe that you know better than the market.
As above, be very careful with your money.Thanks. But the same thing can happen to long-term investors. This one is not limited to trading.StopLoss is a double edged sword. It can kick you out of from a position which is not really problematic, like some 1 day dip, realising the loss.
Luckily, my mother, who had saved all her working life, and probably had a similar figure at her disposal, refused to take the risk, despite huge pressure from the salesman. Her money was earning at least 10% with the building society.
No prizes for guessing who had the least stressful retirement.
That said, a fall from 50k to 17k in that period doesn't tally with conventional investments. So, there is probably some memory muscle failure going on there. FTSE all share fell 34% from peak to trough. It sounds like your father went in at the peak. A 34% drop is exactly 17k.
So, its more likely that your father lost £17k on his investment rather than it fell to £17k as the markets certainly did not drop 67% as you are suggesting.
here is the decade after he invested 50k in the FTSE all share vs Leeds Liquid gold.
and the 20 year period. Although the Leeds Liquid gold savings account stopped being a suitable benchmark for cash after Halifax merger in 95 (completed 96) but you get the idea and it shows why investing is a long game.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.6 -
What caused that massive 25% drop in the FTSE over the summer and early Autumn of 1998?0
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nottsphil said:What caused that massive 25% drop in the FTSE over the summer and early Autumn of 1998?1
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nottsphil said:What caused that massive 25% drop in the FTSE over the summer and early Autumn of 1998?1
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thunderroad88 said:nottsphil said:What caused that massive 25% drop in the FTSE over the summer and early Autumn of 1998?0
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The October 1987 drops recovered within a few years and went on to beat cash ever since. Yes, some zig zags on the way, but your father would have done better than cash over the 10 year period
That said, a fall from 50k to 17k in that period doesn't tally with conventional investments. So, there is probably some memory muscle failure going on there. FTSE all share fell 34% from peak to trough. It sounds like your father went in at the peak. A 34% drop is exactly 17k.
So, its more likely that your father lost £17k on his investment rather than it fell to £17k as the markets certainly did not drop 67% as you are suggesting.
here is the decade after he invested 50k in the FTSE all share vs Leeds Liquid gold.
and the 20 year period. Although the Leeds Liquid gold savings account stopped being a suitable benchmark for cash after Halifax merger in 95 (completed 96) but you get the idea and it shows why investing is a long game.
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nottsphil said:What caused that massive 25% drop in the FTSE over the summer and early Autumn of 1998?
https://www.economicsobservatory.com/russias-1998-currency-crisis-what-lessons-for-today
Just shows though that something that causes a 25% crash is forgotten after a while as markets get back to normalRemember the saying: if it looks too good to be true it almost certainly is.0
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