RE: Good Morning14 Feb 2020 10:03
My own system? Ha, my own lack of a system is what is drawing me to your system. Remember I told you that 4 or 5 years ago when I restarted trading seriously and had spectacular results in the first year, then lost a similar amout on CLLR the next year? Well, looking back, I think I now know that that first year was mostly luck (but hey, I'll take any amount of luck). I did things like "doubling down" if a share was falling buying more at a lower price. Never realising a loss...i.e. not selling until a share was in profit, which is why I have a few long term dogs (but good dividend payers) like BT and CNA. Had some fortune in choosing 2 or 3 tech shares that were subsequently taken over at nice high prices. Make that 3 or 4 as COB is the latest (which incidently is one of the reasons I am in TCM and MCRO as I believe they are potential takeover targets).
Your system of increasing (and decreasing!!) the number of shares prevents an "attack of the Carrillions" by keeping the money invested constant. I repeat, I like this part of your sytem.
French Chateau it certainly isn't. My incentive with share trading is sheer bl**dy mindedness and revenge in trying to get back the money I threw away on CLLN. Brings me to a point where I must mention (yet another) of my emotional bad share trading habits, namely revenge. Revenge in that if I have made a loss on a share, then I have to get back that amount or more from that share. This is because I have to blame anything and everything to avoid admitting that I have made an error (or even just suffered bad luck). I still haven't fully learnt the lesson of cutting one's losses and using the funds elsewhere.
The CGT issue. I have that covered, I use an accountant and he has kept me on the straight and level. The £250 it costs is insignificant compared with the capital gains. I know a lot of people keep quiet about their gains and don't even declare them, I disapprove but that is a matter for them. I think I told you also that I have been progressively moving into Stock and shares ISAs (one for my partner aand one for me). I expect by next year at the latest I won't need to even fill in a tax return as I continue to move into the ISAs completely. Yes, OK, you can "only" subscribe £20K a year per ISA, but I had significant savings from TESSAs and Cash ISAs which I transferred. Yes, I don't expect to be paying any more CGT as I bring forward by wretched (but ultimately useful) CLLR losses. In fact, I have only had to pay CGT once, on that first year, since my restart of trading 4 or 5 years ago. My dividend income is something that I plan in advance, especially as now the tax free allowance on divi income is only £2000. Thanks for the reminder though. Hope others are listening. Ha.
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