Fri, 15 May 2009
Troy’s Blog
What I have learned so far. Part 4.
Although common wisdom suggests there is never a bad time to buy shares, there is a better and a worse time to buy shares – compounded by my small investment pot of cash. This is a problem of investing my £50 per month at £12.50 per trade, as I have previously written, that’s 25% to trade in and my shares will have to go up at least that before I make anything, that’s a big percentage to swallow. The market is in such a tizzy at the moment that a share can drop by that amount in the morning, then be back in the plus by the afternoon. If I can get shares that are down, then it’s a good chance I can get the fees back quickly. But this is very hard work, as I can’t check at times other than my lunch and after hours. But I think it can still be done so I’ll keep you posted on what can be done to help this out.
If your shares drop, you can buy more, lowering your price per share. This is good if you have just invested and the price immediately drops (see Monday trading post) Again it’s obvious but it has a sting in it’s tail as well, as you can get caught with a stock that’s plummeting for a reason, and you can loose more cash. But having said that, it’s what I intended on doing next time round with Barclays. I am pretty sure they will drop again (as is David!) as they have a big year ahead, as do all shares, but if they manage to get back down towards the £1 level again I am back in for some more.
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