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Share dealing - 350z Tip Club


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MODERATOR NOTE:

This thread contains chat and discussion on share dealings and othr investment methods. It is NOT to be used as official advice. The posters within this thread and the 350z-uk.com team accept NO responsibility for any losses arrising from people choosing to embark on any investment based upon any information they read on this site.

 

 

Is there anybody interested in joining in a thread for tips and information on share dealing?

 

I started a year ago and have made about 37% net profit - compared to 2-3% in "high-earning" savings accounts or 5% on my properties.

 

All experience levels would be welcome and sharing would be in a non-blame, friendly environment. :)

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Cool.

 

I'm out on appointments for a few hours but I would ask you to look on the discussion boards at:

 

http://www.lse.co.uk

 

http://www.iii.co.uk

 

Have a look at the following firms - MNR, CEY, MML, LSL. (Stock exchange codes)

 

I hold stock in all 4. MNR are just about to rent the only prestige City office block and LSL release their 2009 results tomorrow. The other two are gold miners. :teeth:

 

If you don't have a broker, I use http://www.tdwaterhouse.co.uk and invest in a Stocks and Shares ISA. You can put in £7,200 this year and £10,200 for 2010/11. No tax!

 

This post has to be qualified by stating I am NOT an IFA or in any way associated with Financial Services.

 

Good luck and DYOR. :thumbs:

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Ill have a go. Though I have tended to spread bet in the past - actual buying and selling of the shares attracts capital gains, whereas spread betting still falls under gambling and attracts zero tax ;)

 

ISA is zero tax :thumbs:

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The ammounts I staked on the spread betting far outweighed what I have left in my isa allowance, so I have to use other means :shrug:

 

I have a cmc markets account for the spread betting. When RBS was 16p I bet £600 a point (on the pennys, not the decimals). Effectively the same "risk" as buying 16 x £600 worth of shares (£9,600) If the price goes up a penny, Im £600 up. If it goes down a penny, Im £600 down. Plus, you dont have to put as much in to cover the gamble as you do by buying the shares.

 

i.e. RBS currently 37p lets say - a bet of £200 per point would cost 37 x £200 = £7400 risk.

 

The "margin" on RBS is 10%. Therefore to take out that "gamble" of £7400, you only have to put £740 into your account. If the price goes up a penny, you are up £200 on that £740. If it goes down, you only have £540 in your account (at which point you will be requied to put more in to cover your position back to 10%).

 

So as long as you have the money to spend, you can keep the majority of the money in the bank earning interest (if its anything decent) or offsetting interest on a mortgage if you are on an offset product, whilst still using that capital on spreadbetting.

 

The danger is that because you dont need to cover the whole stake (as you do when buying the shares), peole take out "gambes" that if they all turn sour, they dont have the capital to cover it. Hence why spreadbetting carries the warning that you can lose more than your initial investment. Anybody watch the film "Rogue Trader" where Nick Leeson is constantly having to cover his position... Well thats very similar to what spread betting is, so NEVER put yourself in the position that if all positions went south, you couldnt afford to cover them...

 

As long as you are strict, and dont go allocating your capital to multiple positions, then its just the same risk as buying the shares but tax free.

 

Another warning though, as you have access to live trackers with the software and live up to the second overview of your current position. It is very easy to spend a lot of time viewing your market position rather than doing your job! It has the ability to takeover...

 

I think its worth adding a warning to the top of this thread in case people act on any of this advice..

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Like the disclaimer and like the posts! Not sure I'd be able to do any online stuff in the UK though... think my accountant would got spare! :lol: Not sure if there are any good places in Ireland doing online stuff with near enough real time tracking. Like spread betting :thumbs::scare:

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As far as spread betting goes, its no different to ringing up ladbrokes and placing a bet. Any gains made from it are completely tax free as long as you have another substantive income (enough to live off). Only if you had no other income other than gambling, would spread betting be classed as income and taxed as such.

 

It is however very unlikely that anyone would be classified as a professional gambler, because you could then claim tax releif against your losses, which HMRC would not like to do.

 

DONT wander into spread betting or any other type of dealing without first understanding the risks fully or seeking professional advice.

 

If you do try spreadbetting, then I can recommend cmc markets, as they have some very comprehensive guides, and I would also recommend starting very small until people understand how the mechanics of it work...

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For Gods sake please read up on how it works... Dont jump in with both feet, as you can lose a LOT of money if the markets move against you. Im not going to offer advice other than to say please read the guides and take your own risks.

:lol::scare: Yeah don't worry did something similar in the past.. lost it all (great while it lasted), might be very interesting when the market starts shooting up again... which they hopefully will. I'll just bet stuff that I can afford to loose anyway. B)

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:offtopic:

 

Thanks for the interest but can we keep this (semi) serious? :)

 

I agree with the mods warning at the top - money is involved so if people want to share can they post any tips/recommendations and reasons why the stock is good value. Also, can they post whether it is a short, medium or long-term investment.

 

:thumbs:

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I would be interested in this, i use the free pro real time charting which a guy from LSE set me up with.

 

:thumbs:

 

Can those who have expressed an interest then post what stock they have, their average buy price and current price and what they intend to do in the future. Also, any tips which you haven't bought and are tracking.

 

MNR. Average buy 71.5. Now at 82.25. Holding until they let Walbrook in the City. Hoping for 150 within 12 months.

MML. Average buy 208. Now at 231. Holding whilst the Chinese keep on buying gold. Exit point 300?

CEY. Average buy 106. Now 127. Gold again so same strategy as above. Exit point 180?

LSL. Average buy 271. Now 277. Sold at 310 and re-entered 40 points lower. :teeth: Chairman VERY bullish about 400 + in next 12 months.

 

Biggest mistake? Bought RMV at 200 a year ago, sold at 280 last summer. Stock now 600. Could have made £20k + :bang:

Also, not buying GKP before they went mental and became a 12-bagger (went from 10 to 120 from July to October last year) :shrug:

 

Not tracking anything as the price of a decent Boxster tied up in MNR and therefore spend a lot of time on the toilet........ :scare:

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Dumped almost everything as watching the markets was taking too much time away from work. Still have a small ammount on banking stock. (spreadbet).

 

Took out bets on RBS & LLOY a while back when there was the possibilitity of nationalisation, average buy for RBS was 16.5.

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I'll have to check on figures but in HMV,DES,BT & RRL at the mo, waiting for LLOY & RBS to drop again to buy in and keeping my eye on TW & HAWK.

 

Just bought 84,000 RRL shares. :scare:

 

There's a "drink" for you when they reach 5p ;)

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