Time to buy in

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Brendan Burgess said:
I don't understand that at all.

Campbell O'Connor had very high costs.

So you should be making even more money now if you switched from them to an online broker.

Brendan
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I negotiated a flat fee of £50 for all my sells irrespective of the amount of the trade.
 
Brendan Burgess said:
OK
That was a very good deal.

It surprises me given that you could not do it online.

Brendan
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I'm still old school. Liked paper contract notes and share certs. Always preferred the phone. Ken in COC was great. I could do a trade in seconds with him. He had access to a range of market makers. I am now with Davy, have to log in, get text to my phone, do trade myself and charged half percent for the privilege.
 
Fidgety said:
Technology has played an important role in market volatility in that automated trade executions occur more speedily hastening movements in early and after market trades.
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Ok but can you point to any actual evidence that market volatility (as opposed to efficiency) has increased? Obviously there are two sides to every trade.

The standard deviation of the US stock market, for example, has been lower for the last 10 years than its long-run average.
 
Sure Sarenco.

Google an article in Wired entitled ‘How technology unsettled the market’ which gives an interesting insight.

Human judgement cannot compete with computer algorithms in terms of speed of execution on both sides of the trade. It can therefore act to hasten reactionary decision making. That’s my only point, that the swings in either direction can be fast and significant. That in turn can drive irrational responses.
 
Ok, I’ve read the article -

How Technology Unsettled the Stock Market

The rise of exchange-traded funds and algorithm-driven trading likely contributed to February's wild stock swings.
www.google.ie

It doesn’t contain any evidence that technology has in fact increased volatility in the stock market.

Sorry but I don’t see any facts that back up this assertion.
 
To your point, maybe there are no facts in the strict sense of the word.
 
Sarenco said:
Regardless, can you point to anything to evidence that technology has increased market volatility?
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Nobody mentioned anything about volatility, except yourself, we simply stated that the speed of the sell offs is much faster today because of technology, that is a different thing to volatility in my mind. Volatility is the ups and downs in the market, so your point is that that has reduced in the last decade, no argument there maybe it has. What we are saying is that when those ups and downs happen (of course not every single up and down but significant ones) then the rise or fall is much bigger and faster especially the falls . To use scientific rather than financial jargon (same concept though) there may be less waves in the market but the amplitude of those waves has increased.
 

If you're chasing thin gains in the same 3 stocks, and doing it frequently, why not go with a low cost online execution only broker ? Davy are one of the most expensive ?
 
Marantz said:
You would like to think that remarks like that, would have no place in a thread in the investments forum.
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To be honest, it gave me a laugh on a tough day. There’s no right and no wrong and to my mind, no offence.
 
Marantz said:
You would like to think that remarks like that, would have no place in a thread in the investments forum.
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Hi Marantz

We have to be open.

When guys claim that they are making pots of money trading stocks using expensive stockbrokers, my hand hovers over the delete button.

So while I don't like posts like that, we leave them there.


Brendan
 
banchang said:
If you're chasing thin gains in the same 3 stocks, and doing it frequently, why not go with a low cost online execution only broker ? Davy are one of the most expensive ?
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Maybe you are right. I have circa £95k on each trade so my gains are not so thin...... to me anyhow.
It may be because Davy are local. I have toyed with doing smaller trades on Interactive Brokers, however when I first started trading I made some losses trading different shares. I find self discipline my biggest problem. Trying to stick with my 3 shares is difficult enough. There are a few high yielding shares in the UK housebuilding sector where I made some good money and I have often been tempted here.
I am happy with my profits and I think I have a combination of being a long term holder of three shares but still trading these on a fairly regular basis.
 
SlugBreath said:
I have a combination of being a long term holder of three shares but still trading these on a fairly regular basis.
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So you are very different from the normal day trader
You hold positions for the long term - which is what is recommended here.
You use an expensive broker - understandable for long term positions.
You have a complex model for separating out the profits you make from trading from the profits you make from being a long term holder of the shares.


Brendan
 
Guys,

What is the advice for someone with a modest pension pot 90% in equities that has lost 15% in the last week or so? Age 32.

Stay the course and leave it as is or reconfigure such that % in equities is greatly reduced?

My view is that the virus is going to get worse and so mkts will fall some more. Does that mean i should quickly move into cash for example?
 

Absolutely not. Leave it where it is and forget about it. If your pension fund has dropped 15% this week, you risk missing the recovery when it does happen. And it will happen. The biggest risk when markets are falling is that people panic and sell. You have a investment horison or over 30 years, not weeks or months.....
 
You’re in an enviable position Jim because you have a ton of time to enjoy the benefits of long-term capital appreciation. In times of volatility, none of us can predict the wild swings and the recovery generally increases much quicker than the falls.

Volatility is with us for a while until there’s clarity on beating this virus, business returns to normal and economies resume in full.
Most of us invested in equities, through pensions or personally, have seen reductions of the manner you described. I haven’t looked and won’t. To be fair, I don’t look following new highs either.

Review what you have in equites every once in a while to determine if your okay with your original criteria for selection, change as you see fit into better opportunities, and keep on investing for the long term.
For example, the travel industry is taking a hammering right now. Worse may follow. I seriously doubt that people won’t travel or that growth will not return in the future. I can’t say when but I think it unlikely.
 
I think it's interesting that current global market levels (MSCI World), even after the recent drop, are still ~24% higher than the market close on 24 December 2018.
 
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