Good plan?

[mEmmerrr]

I am planning at some point in the nearish future to put probably £2000 into some shares when the general consensus is that a bottom has been reached.

Ive read various things about the place most of which seem to be on reasonable logic, like offshore drillers and some slightly less reasonable logic like Oxus the penny miner. The penny mining thing appeals because there is more gaining potential, but obviously more risk and after reading into them it seems there are some political issues around one field they are supposed to be mining... or something.

When looking through my charts today to set up for next week, the thought occured to me that the UK banks just look like a great buy? I know they are in difficulties atm but still? Barclays in particular looks like a great buy to me.

What am I missing here? Is there any obvious reasons Barclays or any of the other banks wouldnt be expected to gain back the lost ground, over a longer time frame?

 

[fhadley]

Hi

1) Can you afford to lose the 2,000?
2) Not even the experts can pick the bottom, so don't beat yourself up looking for it. Find shares that are volatile and consider them. You can make money in a flat or downard market if the shares are volatile - made 20% this week.

enjoy

 

[Hoggums]

My advice is to wait - as fhadley said - picking bottoms is a fools game.

Wait until the market AND the economy shows signs of recovery. Until that happens you are taking a gamble because any bad news can send the market into a tail-spin.

Also investing in penny stocks is VERY risky. They are priced for pennies for a reason. The spread on these stocks is also huge - very often 30-50% of the share price - so the moment you buy them you lose that amount. They are also illiquid - so if you do want to sell some - you may not be able to find a buyer.

Personally I don't think we've seen the bottom yet. I think the economy is still snowballing downwards and there is a lot of bad news to come. We are experiencing a santa rally at the moment buy I don't believe it will last long into the new year.

 

[theroguetrader]

bad plan - How do you know where the " bottom " is..?? Conventional market/Investment "wisdom " is all wrong ...!!

You should " buy high and sell higher " in a Bull MKT- and " sell low and buy back lower " in a Bear MKT.......!!

ALL that matters is price action - !!

Learn to trade - use 1k - make a 5% daily compounded return (dont be be too greedy)-(not on stoxx) - try that for about 2 months and you should have about 7k there.

UK banks are on a KNIFE-EDGE... !! - (a nice up move aint round the corner).... !!

 

[Pound foolish]

I agree with theroguetrader. There is gains to be made by buying votatile sticks at a low one day and selling when they rally. I like the mining stocks at the moment. 20% in one day! Vedanta looks good, waiting for it to hit 450 before buying in.

Regarding penny shares, has anyone been watching NTOG Nostra Terra today. They are currently up 133% at 0.525p from opening low of 0.225p down from day high of 0.9p. Anyone who bought at 9am and sold at lunchtime would be sitting pretty. They went up on a rumour that the Norweigian government has given them a licence to drill fro oil near a large existing field - or something like that, I cant even find the news item now!