Trading Tips

[Highway Man]

lesson 2


can I just check the £10k is on its way?

Yes but I paid it through my Iranian bank, at the moment I believe it is traveling through the straight of humouz. Sit tight it will arrive.shortly

 

[Wayners]

@motorbiking

Yeah. I've got the vanguard ETF as well. I own 2.
Fees are higher though on vanguard although it's up 18% in last 18 month.
Trump has caused two falls in the markets and in both cases I piled in with everything I had spare. If the market falls there is a sale on. Get in.

Buying a house or investing is an interesting discussion. There are reasons to do either.
You got £250.000 in bank with DIY skills buy a rental for 8% return per year.
ETF fund is 9% return but you are limited to £20.000 investment a year and no hassle.
Sipp pension will beat both though.

So people have options. Whatever is best for you

 

[blup]

Do you have a private pension?

Any pension invests , I’m not saying we live without business

 

[Wayners]

I had a private pension I started paying aged 19.
If I never had one I'd go online and start one myself.
Loads of videos walking you through and it's simple to do.
I would not get someone so set one up as the fees are crazy.

 

[JohnD]

Invest 5k and the 50 quid a month for 15 years?

Im tempted for my son, been looking at vanguard.

Bear in mind that if you choose a volatile vehicle, on the grounds that the price can change by 50% in a month, it might go down just as quickly as it might go up.

"Up like a rocket, down like a stick"

Apart from high charges, which you can be confident will be a drag on performance, you don't really know which will be the star performers over the next five or ten years,

If you look at a broad-based tracker ETF, any two are likely to revert to the mean over time. There might be small variations between the two from year to year.

You can make your own strategic decision on which pool you want to fish in.

A whole-world fund is currently dominated by the US market because it is so big. I recently took the decision to sell mine because I am of the opinion that US is overvalued, and is at risk from lunatic Trump. In ten years time the whole-world fund will have a much bigger Chinese proportion. It might have big Indian proportion. It might have a substantial Iranian proportion. It might have a big Russian proportion. Your whole-world fund will follow the money with no input required from you. You will find plenty of people with opinions on which way markets will go. Most of them will be wrong but you won't find out until too late.

 

[foxhole]

Have a few £k in stocks and share ISA , only been investing 3 months and currently just over 7% up ( cash value just over £600). So way better than a cash isa . ( everything bounced back after some reduction due to the War)

 

[JohnD]

If you look at a broad-based tracker ETF, any two are likely to revert to the mean over time. There might be small variations between the two from year to year.

Speaking of which, I see that VWRP has almost exactly the same 5-year and 12-month performance as the whole world fund I showed yesterday.

Edit
See comparison. There is a small but persistent lag in Vanguard, which I think is more likely due to charges than to tracking error.

 

[JohnD]

I should get a higher rate hopefully. But they do seem a no brainer

Actually when you pays the tax back, do you mean pays into the SIPP ?

The 20% cash rebate is claimed by the pension company, basic rate tax, quite quickly after each contribution.

I am retired now, but when I was making substantial pension contributions, I had to fill in a tax return each year, and got the higher-rate rebate paid to me by HMRC. I tended to make a top up contribution near the end of the tax year, when I could forecast my taxable earnings pretty accurately, and minimise the delay between making the payment, and getting the rebate.

If you have your own company, or can get your employer or company to make employer contributions, the money is not paid to you, so there is no tax deducted,and no tax rebate. There is also no NI due on employer contributions, since they are not paid to you as wages. This used to save about 12% employer NI. It may be different now. If you have a business accountant they should be up to date.

 

[pete01]

Bear in mind that if you choose a volatile vehicle, on the grounds that the price can change by 50% in a month, it might go down just as quickly as it might go up.

"Up like a rocket, down like a stick

Not gonna lose over 15 years though are you?

 

[JohnD]

Not gonna lose over 15 years though are you?

That depends what you invest in.

Trump and MAGA acolytes have marketed some investment vehicles that are very profitable for them, and loot the unfortunate punters.

 

[JohnD]

Not gonna lose over 15 years though are you?

Just for fun, imagine you'd invested a thousand dollars in world-famous Microsoft, back in January 2000, and sold them after ten years.

Can you guess how you'd have done?

 

[Wayners]

If I was retired I'd consider a dividend etf maybe.
Spend the dividend money on flash cars and women. Ha

High risk investing is stock the market.
Next time you are shown a stuiped diagram and asked how do you feel about risk say high. I want to invest...

Low risk is government bonds and other fixed interest.
Medium is a mix of both.

So if you are asked id always go high. It's the wrong words used. I'm investing long term to average 9% pre year.
Low risk is building society interest and never worth it unless you have limited time on earth or a giant wad you want to hold..

Jmo mixed with fact.
All useful to know.
Low risk please. Gee. Honest. Makes me mad how they sell this...
I'll go low risk on my death bed only!

 

[pete01]

Just for fun, imagine you'd invested a thousand dollars in world-famous Microsoft, back in January 2000, and sold them after ten years.

Can you guess how you'd have done?

 

[JohnD]

Just for fun, imagine you'd invested a thousand dollars in world-famous Microsoft, back in January 2000, and sold them after ten years.

Can you guess how you'd have done?

I see you've cunningly avoided the question I actually asked.

The answer is, you'd have lost your shirt.

And if you'd said to yourself "I'll delay my retirement for a couple of years, they're bound to pick up"

They didn't.

You need time, diversity and patience.

 

[Wayners]

Implied materials I put £2000 after it dropped 20% for no reason.
Was on the loser list. Profit taking I guess.
That soon went up 60% and I panicked.
I didn't know what to do so I sold.
Kept rising.
I learnt you can get in a flap if you win or lose.
It's a mental game sometimes which it's why I mostly stick with global fund and let it ride.