It’s funny the things in life than can really get under our skin and something that really grates with me is when I see people on Twitter sending out a Tweet to the effect of “A big Buy for 200,000 Shares just went through on XYZ……” (heck, even just typing this is getting my Blood Pressure up !!).
Apart from the fact that the vast majority of people who Tweet sh*te like this are probably Rampers (or perhaps they are just not very clued up on what is really going on), the big issue with this is that if there is a Buy for any Shares then it is a simple truth that there is always one or more Sells on the other side. So if you are taking notice of a Buy Trade and thinking that this is a good thing, then you must be making the cognitive leap that whoever was on the Buy side knows more than whoever is on the Sell side. Without knowing who the individuals are, that is obviously impossible to know and even if you did know who was Buying, you are making an assumption that they are correct (no one is 100% right - even Warren Buffett gets things wrong).
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This can take several forms - a Self-Select ISA, a SIPP (Self Invested Personal Pension) and/or a ‘Normal’ Share Dealing Account (i.e. not a SIPP or an ISA !!). These things all have different features but also a lot of similarities. With a SIPP you are much more ‘locked-in’ and in essence you cannot get your hands on any of the Money you put in or the Dividends/Profits you make on the Account until you Retire (this would probably be 55 as a minimum legally I think but you need to check this as it will be rising in step with the State Retirement Age in future), but you get some nice Tax Benefits like with all Pensions (although you will be Taxed on any Money you take out in the Future to some extent).
This blog has come about as a direct result of Wheelie’s Summer Bash which was on Saturday 23rd September when a load of us met up in a Boozer local to me. If you take notice of my Twitter Feed, you may have spotted that at the End of each Day (usually around 5pm to 7pm ish) I do a Report via a Tweet of how my Portfolio Value has changed during the Day and the larger ‘DOWN’ and ‘UP’ movements of that day for the relevant Stocks. On a Friday I report the numbers for the Day but I also show the Weekly Result for my UK Portfolio and Spreadbets.
On a few occasions over the last 3 years I have been asked by a Twitter Follower what the Numbers actually mean and I have given a fairly full response on the whole I think but obviously the 140 Character limitations of Tweets probably leaves many People just as bemused as before I tried to answer !!
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I am sure most regular Readers and Twitter Followers are aware that I am a bit nervous on the Markets after a good run up and with Spring approaching and a very uncertain General Election in May, I think we could see a proper Pullback. Following on from this, David Greer (@DavGreer on Twitter) helpfully suggested that one of the Societe Generale ‘Infinite Turbo’ Products might be worth trying in order to Hedge (go Short) in a Normal Share account. Unfortunately, they cannot be used in ISAs (shame) but are allowed in a SIPP or in a Normal Share Account that does not sit in a Tax Wrapper. David Stevenson in Investors Chronicle has recently been buying some of these Products within his SIPP.
If you do not have a Spreadbet Account, this could be a great way of being able to Short with Gearing and the safety of a Guaranteed Stoploss.
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