A good example of this is Indivior, which dropped 70% yesterday.
I’ve found that Big ones like Astrazeneca are reasonably stable and can weather a few pieces of bad news. Look at the long term chart it’s a reasonably steady long term up slope, even during market crashes it wasn’t hit that badly. I hold it for the dividend ( which isn’t the highest in the sector but is not bad when combined with steady growth)
Hey guys I opened an investment ISA so this is my portfolio update
You have 77% of your portfolio in 3 stocks and most of your kids money in Tesla.
No offence mate but you really need to diversify more. I would suggest you be thinking 5% a stock.
Still not sure why you opened ISA either. You will never make 11,700 a year profits or growth (that’s your annual exemption for capital gains) from a 9k portfolio. So unless you have 20k every year to put away there isn’t much point. If your spouse has equal rights to the money then you’ve effectively got 40k to play with. Freetrade haven’t started juniors isas yet but they will do in future I’m sure
Hey thanks for the advice. I understand the importance of diversity but there’s nothing much I can do with £2-£3 dividends if I spread my £7000 portfolio around 20 stocks. Yes 20 stocks is my goal but I feel I’d be able to accomplish more with £40 plus dividends. Until freetrade offer fractional shares! Plus the 5 stocks I have are pretty solid stocks. But I do agree with if I had fractional shares available to me. Tesla are gonna be huge in the next 5-10 years so buying 7 shares in them is a no brainier. Iam gonna buy more Apple and Facebook in the future. (Growth stocks)
In answer to the isa. In 15-20 years time I do expect to be earning mor than 12k year in dividends so I think the isa was the right choice. It can’t do any harm any way
But that gives you 20 small dividends, you may not be able to buy shares in all 20 companies with the dividends but you can put them all together and buy shares in one or two
I have stuck £5k on freetrade basic. I have invested in 42 stocks and that includes around 4 ETF funds. Just saying…
Cool. Different strategy’s
uk dividend etf (50 stocks) alone pays over 6%, put £9,000 into that you get more diversification and an annual income of £500+
That might be good for the average person but Iam more hands on and prefer specific stock that I know and like.
@Emina1 If you haven’t read https://www.dashofinsight.com/the-quest-for-yield/ have a read.
Also there is newer post https://www.dashofinsight.com/boost-your-dividend-yield-ibm/ this approach would be useful for someone with very large capital.
At the moment I personally do not go for yield.
That approach requires options trading, which isn’t in freetrade and isn’t planned to be as far as I know. although it does make sense and is a less risky way of using options
I have wondered if it might be feasible to use IG to sell calls on a stock I hold in freetrade, hmmmm
Yes. That strategy is not possible on FT and also you require at least 100 shares inorder to sell one option , so not for small account.
I would assume that would require some margin in IG account and associated costs with margin, not a good way of doing it.
Dunno where you get tesla are Gona be huge when the big car manufacturers start shipping their electric cars which they are ramping up over the next two years I feel tesla shares will take a big dip.They still Carnt even make a profit so once the big car dealer start with there electric cars tesla may get swallowed up
I tuned my head today after a Toyota Rav cruised passed in near silence. I didn’t realise they did electric cars in the 4x4. What’s more it was a 2016 plate, but after a google they sure do. With the congestion charge in London and a continual turn against emissions it’s difficult to see much future for combustion engines. Eventually they will all be hybrid of a sorts. I feel Tesla is overpriced and I won’t invest in it until the share price drops below 175 and even then I will want to see have a good look at stats. If I’ve missed a good one then so be it. If it drops too low it could be taken over anyway by a profitable car manufacturer like BMW group who will harvest its engineering for their own cars.
edit: 3 year graph of Tesla stock.
I agree, when compared to car manufacturers they appear overpriced.
But tesla is more than a car company in my view , they have power wall, solar city tech, not to mention the recent discussions to beat lyft, waymo and uber to a driverless taxi fleet. I like tesla because it fits in my green credentials and is quite funny to watch the roller-coaster. Both ways. I’m down quite a bit from when I bought but they have lots to offer I feel.
Even if telsa did make it u need more stocks than you got am a complete beginner to the stock market and dont have anywhere near as much as you invested but i have got 17 different stocks i have been trying to learn as much as I can about the stock market and rule number 1 is reduce the risk by investing in many different stocks or etfs.
Ha doubt Tesla will get swallowed up. Amazon bled billions for years now look at them. Tesla are in the forefront of automatous driving ,others are years away. I believe in 5 years this stock will at least be 2k but that’s just my opinion.
Tesla Market cap is already bigger than Ford or GM, I don’t see how it can get much huger (is that a word?) from here. especially with the losses they are making
Edit: as of today after Tesla Fell and Ford went up Ford is bigger than Tesla Again, and Ford pays over 6% dividend ( I have some Ford shares, no tesla though)
Whether tesla get swallowed up or not am just saying up need to have more than what you got cause your risk is so high with just them stocks.Hope it works for you but don’t think it will with what your doing at the minute.