Any good stocks for under £20

Hello I’m quite new to investing, I have made some alright profit on my system of buy a stock low, sell when it gets high or buy more as it goes low. (About £1.30 on portfolio of £50 in about a month) I had quite a large position in Royal Mail. I had 12 stocks bought at 3 different times. I can now sell them for a 1% Profit. Any recommendations on where to put my £25?

It depends what you’re looking for, if it’s swing trading or investing, either way with a small amount it might be best to invest and hold in a fund (trust/etf) and hold it. Keep a little bit on the side for swing trading, but use that just for fun as it’s really hard to diversify your portfolio and a nice diverse fund does it for you

If you’re doing this just to have a bit of fun with trading, just have fun with it. You don’t really need our recommendations; just pick whatever matches your strategy and that costs less than £25.

If you’re actually trying to invest money with the aim of making as much money as possible over the long term, picking individual stocks is very unlikely to give you a better performance than just trying to get the market average (ie. buy the whole market via a broad global ETF).

Your £1.30 on £50 represents a gain of 2.6%. For reference, a certain global ETF gained 4.4% in the last month.

Now, you might on the other hand have gotten lucky and beaten 4.4%. But it would have just been random luck. Not something you could consistently manage every month or year over multiple years.

4 Likes

Exactly. New to investing? Buy ETFs. Investing for decades? Buy ETFs. If Woodford can’t pick stocks then neither can you

2 Likes

I agree with the above but Woodford has the 5%rule and the 10% rule to contend with.

Ordinary investors can beat them because they don’t have those rules.

Realistically though you shouldn’t ask people on here for stock tips as they generally aren’t going to know any better than you which ones are going to do well.

1 Like

That was my plan. I wanted to have some bond etfs, stock etfs and then mess around with some money as well. I’m doing it mainly to practice as I might have about £15,000 to invest so I want to know how well I can do.

1 Like

65 of the FTSE 100 are under £20. Here’s today’s prices.

08

1 Like

Ok thank you I hope to soon invest in BAE systems once it is added.

BAE Systems has certain issues adding to Freetrade right now because shareholders need to declare their citizenship as well as declare, if they are a foreign citizen, that they have no interest in over 15% of BAE System shares. I’m sure Freetrade will sort it (as they have done with US share declarations) but it might not be anytime soon.