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I have begun trading with 400 quid. A N00Bs journey.


No One
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So after six years of reading threads on TOS,  and now here (where all the cool kids are), I have decided to dip my foot in the market . 

For years I waited for the Housing Crash, only for it to slip further away after following bad advice. During this time I have also seen the stock market rocket into an obvious bubble. But finally the stocks popped and now I'm trying to get into the reflation as per @DurhamBorn 's famous thread.

So armed with my 400 quid, and the valuable knowledge gained here I've started trading. I'll post what I buy, and why I've bought, and you can tell me if I'm right or not.

 

Platform

Trading 212.jpg

Firstly, I chose Trading 212 because the don't charge commission, its instant and they have ISA.

I looked at Robin Hood but that's not available in the UK and Freetrade has less stocks to trade. Also they don't do fractional shares which is something I need for my tiny budget.

If you have better platforms that cost nothing please let me know.


 

 

 

 

Edited by No One
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Shares

My strategy is purely buying shares. The CFD stuff is way over my head and I would be bound to loose money, so I'm not interested.

I started by separating by sector by whats likely to be affected for a long time, and what would recover quickly. This is what I came up with:

 

-Aerosapce : Beyond Hope. Don't touch with a ten foot barge pole.

-Automotive: Same as above. Noe one is going to buy a car in this climate.

-Metals: With China paralysed the price of steel has collapsed. I assume the same applies to all other metals except gold and silver. 

-Housing: No need to explain

- Banks: No Need to explain

 

+Pharmaceuticals: Likely to gain during a pandemic.

+Miners of Gold and Silver: Flight to gold

+Utilities: People will still need these

+Videogames: People will be bored during quarantines. Safest entertainment to play without getting the wu flu.

+Tobacco: Based on things I've read here. Also more stress more smoking.

 

? Weapons Manufacturers: Protected by the government against collapse

? Royal Mail

Another thing I thought off is that back in 2008, when the banks collapsed, they sold the good stocks to cover their losses of the bad ones. So some stuff is bound to be oversold.

 

 

 

 

I then took a look at famous stocks and checked to see what had fallen.

 

Coca Cola

I started with Coca Cola. People will still drink coca-cola after the virus goes away, and they have a vast line up of non alcoholic drinks.

18.thumb.png.2fc9e00bc47629252445f74f730242b3.png

Amazon

Even though a lot of their stuff comes from China and they will be affected. People will go out less now to brick and mortar shops, and when the virus goes the trend is more online shopping.

16.thumb.png.784b70c3846bd03f49745f84f85c17d8.png

Alphabet (Google)

I took a look at how much the had gone down.

17.thumb.png.2544c9512b188ffb80b7f4ad1156f19b.png

 

So with my first 150 quid, I bought 50 pounds worth of each and called it a day.

Oh and with 5 quid to spare I purchased some Paypal

9.thumb.png.9f2862d5b2a085ad55f40e71884d1561.png

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Day 2

I topped up my ISA with 100 pounds more.

 

Tesco

Given the shelves are emptying I thought this would be a good time to buy into Tesco's, and it was looking cheap from before too. It doesn't matter if the virus shuts everything for two weeks, people will stilll buy food. 

7.thumb.png.db05921c3c17fe2510998a6b27837161.png

 

AstraZeneca

People will still need meds after the crash, and as a bonus they may find a cure or vaccine or test.

15.thumb.png.be48f82ba00ee6e671591f2cb00dc31d.png

 

GlaxoSmithKline

Same as above

12.thumb.png.6095e591991bfb78c00d058273862f72.png

 

Royal Dutch Shell

The Russian/Saudi oil war makes this look cheap imho.

8.thumb.png.3bb5eb4de0e883e2b2c04c2ce9d83347.png

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With a few pennies I have left I buy a tiny amount of Virgin Money

5.thumb.png.6b936e847cd57b5dcc554ef16406be8e.png

 

 It wasn't a good buy, but either way it was only 0.50 pence I put in.

Edited by No One
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Interesting journey, keep it up....the only thoughts I had were:

1. Pharmaceutical - lots of ifs/buts.

2. Retail - issues with physical delivery, both to/from suppliers whereas virtual products easily delivered.

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Great stuff. I'm considering doing something similar. My main savings go into a company pension, iirc that's going into a global tracker thing so heavily weighted into the faang stocks. A nice dollar hedge for 25 years time but not very exciting when I'm watching my own picks get cheaper everyday. A couple of ton at a time I could deal with rn.

How is trading 212, if I throw them a few quid can I get it back straight away like a betting site? Assuming I've not burned it buying shite obviously.

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On 26/03/2020 at 07:53, Calcutta said:

Great stuff. I'm considering doing something similar. My main savings go into a company pension, iirc that's going into a global tracker thing so heavily weighted into the faang stocks. A nice dollar hedge for 25 years time but not very exciting when I'm watching my own picks get cheaper everyday. A couple of ton at a time I could deal with rn.

How is trading 212, if I throw them a few quid can I get it back straight away like a betting site? Assuming I've not burned it buying shite obviously.

I quite like it. It’s free to trade and you can do fractional shares and you can use stocks and shares isa.

 

my traded have been near instantaneous, with the odd lag on one or two trades 

freetrade is also an option but I haven’t used it 

 

oh if you use my link I can get a free share Although you don’t have to use it:

Do you want to get a free stock share worth up to ‎£⁠100?

Create a Trading 212 Invest account using this link www.trading212.com/invite/FMXckZmz and we both get a free share!

 

 

 

 

 

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Let’s see what Monday brings.

I got my pay check today and I put in a grand into my account. So far I have 1500 and have lost 17 quid as there was a levelling off due to the unemployment news in America.

AFE2B67E-0052-4843-A082-162F45B99A83.jpeg.ac3dea5faa784562349acef68ed91146.jpeg

I’m hoping Monday when the market opens I’ll get a boost after the two trillion has been passed into law.

4BC5EB54-5BED-445E-869F-BD0499E927B7.thumb.jpeg.75489dd0f0de27508eedc8a686222ad5.jpeg3061CD9D-5386-4FC2-A272-D2C67B1BD8AF.thumb.jpeg.f8f3d6b4ecd3d10522acad0f71f3c6db.jpeg

ACCFFC2B-0153-4E54-9940-B3619E868BD8.jpeg

Edited by No One
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The decisions behind the picks are entirely due to how much they’ve been sold off during the panick.

btw I sold shell for now 

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AMD 

Not my pick. I got this for free when a friend of mine used the link to make an account.

I can’t sell a stock gifted to me by this referral process for three days. I that time the price went up 10% which is very neat but I don’t see this stock going up past it’s peak during the coronavirus crisis so I’ll be selling it soon .

B5BE21FF-3234-45BD-97AE-ABC847720F22.jpeg

 

 

 

Edited by No One
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Alibaba

There could be potential in this stock for gains as the recovery picks up. The risks is that western countries start shifting away from China as an unreliable nation for production.

6867D9C2-3A55-4DB2-A68E-C30559CB6C21.jpeg

Google

The same as before, I see potential  if there is an shaped recovery. All pending in the two trillion of course

8B3328C6-9ABE-4A82-879B-045C229F115A.jpeg

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Boeing 

A controversial pick. They clearly messed up their Max plane and are due a big battering but that was priced in before corona. The collapse in price could be an opportunity with the bailouts.

39D6BD04-0A5E-4C4F-88CF-9D55EFA86AFD.jpeg

Cisco

Another stock that crashed and could pick up with the bailout.

EA30C770-8DD0-431F-9165-42D2758354E1.jpeg

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Coca Cola

My favourite 

F195F984-8742-495E-99AF-924C4F087E7E.jpeg

Ford

the auto market will be in trouble but I want gains from the bailout and then sell

93712143-D9A9-448A-9073-57893D1D6B7A.jpeg

Not sure what this is xD

A1C8EBC8-5631-4554-BE0E-7A36E1FEF311.jpeg

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Great thread.

I am also a noob.

Slightly different position life-stage etc.

Starting this week with 20k needs to be in a s/s isa.

General plan this week is 2x 5k in etf and 10x1k in individual stocks.

I have chosen iweb because plan is long term 10yrs+ hold, review maybe once a year but probably even then just hold / reinvest divis.

Two observations on your list here:

1. By choosing US stocks you are automatically losing a fair bit on exchange spread [5% maybe?]. In addition you are betting on the USD doing better than GBP over the lifetime you hold for.

Over 10yrs I would bet on the reverse. I.e. that GBP will be higher against USD therefore would not buy USD now.

What timescale are you thinking of? [I am guessing much shorter]

2. Why are you only looking at one year?

If you are looking for long term, wouldn't it be better to show max/at least 10-15 years.

If you plot that with FTSE and DOW, FTSE100 looks to be a good buy at current level. DOW still looks as if it's just the end of the exponention [BUBBLE] bull run and the current crash is just a bit of up and down.

FTSE 250 is somewhere in between. Problem with the plots below are that FTSE are GBP and DOW usd. Ideal would be a plot of DOW etc in GBP. Anyone know where to get that?

 

My conclusion in any case is for investments within a uk s/s isa:

my 10x 1k stocks should be 5xftse100, 5xftse250 or lower-cap

every stock I am looking at their total debt as a % of profit/turnover.

for covid I'm thinking supermarkets and telco and utilities are a good idea where they are now better priced than before.

both should be GBP priced otherwise you just lose too much on the standardised exchange extortion from UK banks.

 

 

 

Edited by BWW
exchange spread - the rate vs the mid rate - is the bigger exchange issue not fees.
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On 01/04/2020 at 13:15, BWW said:

Great thread.

I am also a noob.

Slightly different position life-stage etc.

Starting this week with 20k needs to be in a s/s isa.

General plan this week is 2x 5k in etf and 10x1k in individual stocks.

I have chosen iweb because plan is long term 10yrs+ hold, review maybe once a year but probably even then just hold / reinvest divis.

Two observations on your list here:

1. By choosing US stocks you are automatically losing a fair bit on exchange spread [5% maybe?]. In addition you are betting on the USD doing better than GBP over the lifetime you hold for.

Over 10yrs I would bet on the reverse. I.e. that GBP will be higher against USD therefore would not buy USD now.

What timescale are you thinking of? [I am guessing much shorter]

2. Why are you only looking at one year?

If you are looking for long term, wouldn't it be better to show max/at least 10-15 years.

If you plot that with FTSE and DOW, FTSE100 looks to be a good buy at current level. DOW still looks as if it's just the end of the exponention [BUBBLE] bull run and the current crash is just a bit of up and down.

FTSE 250 is somewhere in between. Problem with the plots below are that FTSE are GBP and DOW usd. Ideal would be a plot of DOW etc in GBP. Anyone know where to get that?

 

My conclusion in any case is for investments within a uk s/s isa:

my 10x 1k stocks should be 5xftse100, 5xftse250 or lower-cap

every stock I am looking at their total debt as a % of profit/turnover.

for covid I'm thinking supermarkets and telco and utilities are a good idea where they are now better priced than before.

both should be GBP priced otherwise you just lose too much on the standardised exchange extortion from UK banks.

 

 

 

I didn't start with a strategy, I went for big companies that have been through many recessions and survived/adapted and whose value will rise within one year which is when I expect normality to return post covid.

Any time period after I'm not considering.

Coca Cola and McDonalds have been my two big picks so far as they are bound to rebound.

The rest are Oil sotcks and some US Pharma and some change.

 

I'll update my list :

CCB8C825-3C38-41E7-84C7-5935D7ED752D.thumb.jpeg.f591fa381e354dd5ed5896a0f9d1cce2.jpeg

25F144FE-D006-41DE-B978-A0B26E6E24D2.thumb.jpeg.b20e8b596dcb089434929e85ecbe7c28.jpeg

F371192C-C0D7-4748-9A02-13CB5EB783FA.thumb.jpeg.a463809fefb70df7ea33839199e388c1.jpeg

CEC1D986-0E12-4910-A298-5249D344AB5F.thumb.jpeg.69e0821cfd26be7cb482f0772bbf5601.jpeg

Edited by No One
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On 27/03/2020 at 21:36, No One said:

Not sure what this is xD

Actually LOL at that after the brief logical explanations for all the othersxD

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3 minutes ago, Loki said:

Actually LOL at that after the brief logical explanations for all the othersxD

I bet he’ll make more money than I ever will. :Jumping:

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1 minute ago, Shamone said:

I bet he’ll make more money than I ever will. :Jumping:

Same here, I'm reminded of the bit in As good as it gets

"How do you trade markets so well?  I think of a number and I take away reason and accountability"

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Democorruptcy
On 09/04/2020 at 23:09, Loki said:

Well done Midas :D

No one is making the game look easy, every one a winner. (Psssttttt..... get him to buy some you know what)

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2 minutes ago, Democorruptcy said:

No one is making the game look easy, every one a winner. (Psssttttt..... get him to buy some you know what)

@No One  You use a kettle don't you?  Case closed, you should buy some Centrica*

 

*This is not financial advice.

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