RE: Red Braces Brigade9 Mar 2021 13:29
Whoops, that as for C not V !!
I found having a larger number of shares emphasizes the profit ( or loss ) on SP movement.
500 shares provides £50 for each 10p rise.
5000 shares gives £500 for a 10p rise.
Works great if you don't get stuck at a high price, and the share is volatile as ASC, CCL, MCRO were last year. Of course a share valued at 10p needs a LOT of news etc to move up 10p, a £5 share would move much easier/ more often that amount.
Risk / Reward.
Your profit requirements are quite modest; I initially wanted to beat the 0.1, 0.2% interest rates in my savings or isa accounts, so decided I wanted 5%/year. Smashed that in a couple of weeks - my pot was nearly the same as yours. So decided on say 1% a week. A few hundred quid but WELL ABOVE interest rates!
As you may have seen in the past on here we "joke" about profit in terms of Tesla's. 1% of capital a week would have got me a model 3 long range!!! Although I wanted the Performance or a model S !!
Unfortunately market failed me June and I lost a lot of the profit and got stuck in falling shares, many / most I sold at a loss ( MCRO, CCL, CINE, MARS, JDW, MAB, MRW and similar ) Covid recovery stocks that I had traded on and off until the big drop.
Still well up until last month with GGP fall and Plus drop!
Sorry, waffling.
Probably a reasonable idea to do a parer / spreadsheet exercise on a couple of shares that you could trade, and see how you do in theory - at what point do you buy and how many, ditto sell. ( The theory of T !! ). Compare and contrast strategies.
V
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