RE: Oh come on19 Nov 2019 10:45
This would appear to be directed at someone in particular, but doesn't say who.
I recently posted about holding and trading in another thread.
So, if it was meant for me, I'd be happy to explain my own activities further.
I am a beginner at this and am not suggesting I have any level of expertise, just sharing my own experiences and results.
COSTS
I trade often enough that my trading fee benefits from a quantity discount.
Even so, it's via Hargreaves Lansdown (where I have my ISA and SIPP) and I'm told their fees are relatively expensive in the general marketplace.
The fee for me is usually £5.95/transaction.
On occasion, this can revert to £11.95 if I haven't traded enough the previous month, but that's rare.
AMOUNTS
I trade on different basis' for different shares - UKOG is the share I trade the most often.
For UKOG I buy in tranches of £1,000 to £10,000 at a time, depending on the price available.
Therefore my costs, percentage-wise, are less than smaller investors and more than larger investors.
I started with sums of £1,000 a few years ago and built up from that.
Currently I have too much exposure to UKOG and my total holding is worth £50k (just over).
At the current SP level, a 1p difference in the price is worth around £100 to an investment of £10k.
That can be a profit or a loss.
RANGES
If you look at the last few days, the SP has only moved in an average range of around 4p.
It's not quite that simple, as the broker adds something to the buy price and takes off the sell price.
But, let's say I accept trades for just 2p (around 2% currently) profits; I can identify three opportunities where I could have done that in the last five days within the range it's been at.., in an ideal world.
Three times 2% on a stake of £10k, that's £600. If I can do that every week (sometimes I can, sometimes not) , it's around £25k a year.
PROFIT vs RISK
I have targeted 5% profits on UKOG in the past but had to adapt recently.
UKOG isn't quite as volatile as it has been, which means I have to accept smaller margins to maintain quick returns.
There is a greater risk to accepting lower profit/risk, as it's easier for the SP to slip into a completely new range.
That may leave me holding over-priced shares I can't sell without making a loss.
I am happy to sit on those until the price comes back up to the level I need, although that can take time.
In the meanwhile, if I think the SP should be higher, I'm usually confident enough to buy more while the price is low and trade them at that level.
I believe that the prices I have bought my current holding at are low enough that the price will rise sufficiently and frequently enough for me to sell for profit.
Of course then my risk is that I sell them for a quick 5% profit and the range transitions higher.
I will have then lost more profits and have to make a decision whether I can still make a profit by buying at the higher price.
We all accept different levels and types of ris
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