Mon, 11 May 2009
Troy’s Blog
What I have learned so far. Part 1.
Being in the markets for the last 5 months have taught me a few things. I thought it was about time I shared this with you. It’s in four parts, as I seem to have learned quite a bit already. Well… let’s see anyway!
When buying shares the fees for the trade are priced in. Originally I wanted to buy £50 of Barclay’s shares, so I deducted the £12.50 fees from the price I inputted to Selftrade (£37.50) so I ended up with £12.50 less shares. If I had inputted £50, not £37.50 as a buy order I would now be another £37.50 in profit as the shares have tripled since I bought them.
Monday Trading. This makes prefect sense and I have only just learned it. Personal investors (me and you) read the papers at the weekend to get investment tips, then buy on Monday before the price goes (rockets!) up. Or so they (we, me) believe. The same people that set the prices of the shares – so called ‘market makers’ – read the same papers, so they up the price they can charge on Monday morning when everyone is clamouring to get the shares before they rocket up… then in the afternoon, the prices drop and they are immediately in a minus situation. Sounds so easy when it’s pointed out to you doesn’t it? I felt stupid. No more Monday AM purchases.
Advice is all subjective. Even mine, and dare I say it, the 4 Wise Monkeys. For every piece of analysts data you read I can find you someone saying the opposite, and vice versa. There is a dearth of financial information from analysts, journo’s, bloggers etc that are all saying they are the ones to make the best calls. They all know what’s happening, can find a Fibonacci sequence, double bottoms, ‘U’ shapes and not ‘V’ shapes and they can – literally – blind you with info. My eyesight is much poorer now, as I have had my eyeballs glued to my Laptop screen analysing the analysts. I am still at a loss as to where to get the best info from. I’ll try to keep you updated though on my search for what’s interesting and what’s not.
posted at: 13:22 | path: | permanent link to this entry