yu_yu_liang: How much do you invest per go when buying shares?
I am using Halifax sharebuilder at the moment and have been buying in chunks of about £70-£80 but I will now be be buying in amounts of about £150-£200.
It only costs £1.50 a time so my costs are about 1% for buying. When selling however it costs £5!! So this means I need to sell to the value of hundreds if not thousands to make it worth while.
Do you buy in hundreds or thousands?
Answers and Views:
Answer by Grobek
hundreds better to lose less money than lose a lot but unsure
You’re paying 1% to buy and 3% to sell, around 4% in total.
That can be a big chunk of your profit. If cash is getting 8% p.a. right now and your equity portfolio is returning 20% p.a. then you are doing all this work and taking all this risk for an incremental 12%. So you don’t want to lose a third of it to transaction costs.
The amount of money you should spend per transaction depends entirely on your means and your investment strategy. Personally I’d always invest around 10% of my total pot in each transaction but then again, I’m no speculator. I prefer to buy quality stocks and then hold on to them.
Answer by vishu scheck this link its good
https://workathomeandearnmoney.blogspot.com/
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