I’m completely new to the trading 212 platform and I only just started investing less than a week ago. I need advice on my current portfolio and what I could do to at least gain some profit as it’s all currently red at the moment? Any and every help/advice will be appreciated!
Bit unlucky starting the other week with the US highly volatile atm with the transition.
Anyway don’t worry with Apple / AMD.
FTSE 100 / S&P 500 are fine too.
Barclays I wouldn’t advise touching banks.
ARB is volatile. The blockchain ones especially so you need to be careful chasing these from FOMO.
PHE I think has legs. I don’t know if you’ve been following the likes of FCEL etc Hydrogen and Lithium stocks are having a nice like boom period. Bit of a rollercoaster, but some nice gains if you hold.
Tesla well that’s a crazy stock, it shouldn’t be as high as it is but doesn’t obey normal rules.
CURI I’m not familiar with.
No action required other than patience for the most part! Don’t panic. Don’t let emotions make decisions which require logic.
That being said, I mimic what the above poster said with regards blockchain, banking, and Tesla.
Some words of advice.
- Investing is a long term game, anything else is almost akin to gambling.
- What goes up can go down, and vice versa.
- Patience is key. Have a look at the growth profile of the S&P 500 and FTSE100 over time - but make sure you look at their ‘total return’ to get the full picture.
- As long as your original reason for investing in all those holdings stand, keep holding them.
- Consider since you are a new investor, to may be only invest a small portion of your portfolio in individual stocks. Put the rest into something diverse - a FTSE All World Index ETF, there are several out there. You can then decide over time which you prefer, and tweak the weightings between a globally diverse selection of funds, or your own stock picks. Personally I regularly top up VWRP, but do your own research, investing in a global tracker may not suit your needs.
What are you using to look at total returns?
Finding the share price growth of an index is quite easy, but I don’t know where to find the total returns, including dividend returns.
The easiest thing is to probably look at an accumulation fund, which would reflect the full return if the dividends were reinvested.
Morningstar is a good resource - the HSBC fund below has been going for a while. Play about with the graph - try changing it to say 10 years, and add the FTSE 100 benchmark.
If you just look at the benchmark alone, the FTSE looks to be a fairly poor/flat return over the last 10 years(about a 15% gain, or inflation give or take). But when you also consider you would have earned dividend payments as well, the total impact is a gain of 64%.
I’m not saying that is an amazing return - the UK hasn’t done well really since 2015 compared to other countries. Add in VWRL to the graph, or try adding a US/European/China/Japan fund. No-one knows what will perform the best going forward, people can speculate and make an educated guess, but that’s all it is.
What you should do is wait. I can almost ‘guarantee’ that in 1 year 90% of all your stocks will be green. That’s the thing about the market — it does go sideways in the short term but in the long term most good companies go up.
What constitutes a good company is a different question but in my opinion you picked decent investments…
Great! Thank you very much
Amazing, Thanks so much for your valuable advice!! I feel relieved now haha
Amazing, thank you very much!
Holding 2 stocks or etfs with that amount of money would be the place to start.
Why try and be overly diversified when you are just starting out?
You have plenty of time to build your portfolio over time.
I’d argue that when starting out that is better to be overly diversified. Cutting back when you learn more and are more confident.
Ye, I’d agree. The rule of thumb is to take more risk when you are still young and starting out. You will also learn valueable lessons when doing so and it’s better to loose £100 now than loose half of your retirement balance later.
Holding two stocks is taking a risk, that’s what I’m saying. He could just pick Amazon & Tesla. Brookfield Asset Management & Target. Square & Berkshire Hathaway…
Owning 10+ stocks with like £8 or £5 does not make sense when building a portfolio. There are certain mistakes you do not need to make to become a better investor. You invest in the moment you are in.
£4 X 500% = £20.
£40 X 500% = £200.
If I understand your point correctly, it doesn’t add up how you think it does. Owning 10 x £4 stocks or 4 x £10 stocks is the exact same result if they rise 500% apiece.
£4 x 10 stocks = £40 x 500%
is the same as
£10 x 4 = £40 x 500%
This is one 4 pound stock growing 500%
This is four 10 pound stocks growing 500%.
Either way, there is a massive assumption here of 500% growth.
If you have a principal of say 1000 pounds, it’s very risky as a beginner to stick it all on one or two stocks. I really think you should protect yourself from your own ignorance as a beginner and spread the risk.
The point I am making is £4 into a stock is too little.
£40 gives a beginner a chance to see gains that can then be split into building a portfolio.
£4 X 500% gives you £20… that’s a long wait.
You could make double that by a £40 investment going up 100%.
Choose wisely and allow diversification to happen over a lifetime. You don’t need to be instantly diversified when building a portfolio.
There’s no point investing £4 into a stock. That’s my point.