Lloyds and Diageo?

[buzzing]

About three years ago I put all my money into Lloyds and RBS like a fool, it is better to put your money into different sectors, isn't it? Anyway, just sold Lloyds at 58.9p and got my money back (no profit) on what I paid 3 years ago, but the greed in me thought, that they might go even higher, true?

Anyway, a different sector to banking is Diageo in the drinks sector, they have been streadily rising for years. Of my £20,000 in my account is it worth putting £4,000 into Diageo. Actually, £20,000 is all the savings I have in the world. Will still have £8,000 left.

Good strategy, set a stop loss at 2% below what you pay and set a sell thingee at %10 increase? And stick to this for all companies?

 

[malaguti]

About three years ago I put all my money into Lloyds and RBS like a fool, it is better to put your money into different sectors, isn't it? Anyway, just sold Lloyds at 58.9p and got my money back (no profit) on what I paid 3 years ago, but the greed in me thought, that they might go even higher, true?

Anyway, a different sector to banking is Diageo in the drinks sector, they have been streadily rising for years. Of my £20,000 in my account is it worth putting £4,000 into Diageo. Actually, £20,000 is all the savings I have in the world. Will still have £8,000 left.

Good strategy, set a stop loss at 2% below what you pay and set a sell thingee at %10 increase? And stick to this for all companies?

bad idea buzzing, I personally think your stop might be too tight. There are others out there with a sound strategy

 

[MayZerG]

Lloyds TSB have just recently become profitable again based on their last quarterly, its the first time in a few years so now is a good time to buy IMO.

Diageo, the CEO announced hes retirement on wednesday i believe? Could be thursday? This moved the shares lower, mainly because he had tripled the income of the company (which is amazing) and investors were not sure about the newly appointed CEO. However they said it would be a smooth transition and that they are still in good hands.

Based on their net profit and profit margins i recommend both as BUYS, which you can see on my thread .

I agree with malaguti your stop is too tight

 

[counter_violent]

About three years ago I put all my money into Lloyds and RBS like a fool, it is better to put your money into different sectors, isn't it? Anyway, just sold Lloyds at 58.9p and got my money back (no profit) on what I paid 3 years ago, but the greed in me thought, that they might go even higher, true?

Anyway, a different sector to banking is Diageo in the drinks sector, they have been streadily rising for years. Of my £20,000 in my account is it worth putting £4,000 into Diageo. Actually, £20,000 is all the savings I have in the world. Will still have £8,000 left.

Good strategy, set a stop loss at 2% below what you pay and set a sell thingee at %10 increase? And stick to this for all companies?

I assume you are talking about investing as opposed to trading?

 

[MalcolmSm1th]

I would like to say that your 2% stop is too tight; most shares can easily move this amount for no real good reason. When I am doing my investments (my ISAs usually) I look at about 10% to 15% and then hunt around on the chart at around that amended figure to see if there is an obvious nearby support level, or could be a support level, and put the stop a shade under that.

As for the top end. Why have a 10% profit exit? If the share is doing well and is rising stay with it. This is what you are in for and it seems daft to leave a rising escalator when it is doing what you want it to do. If the stock rises higher and higher, don't panic and jump just move your stop figure higher and never, ever move it downwards.

As to the two stocks in question; i can't say as I am not qualifed to do so.

-Malc

 

[malaguti]

I assume you are talking about investing as opposed to trading?

a fine line between trading and investing CV..if Diageo reaches his target of 10% in the one day, that doesnt count as an investment, just because his instrument was physical shares.

 

[counter_violent]

a fine line between trading and investing CV..if Diageo reaches his target of 10% in the one day, that doesnt count as an investment, just because his instrument was physical shares.

Trying to establish if the OP is physically committing to share purchase or trading the instruments. Seriously, it's as different as chalk and cheese.

 

[buzzing]

Trying to establish if the OP is physically committing to share purchase or trading the instruments. Seriously, it's as different as chalk and cheese.

Just buy wait for them to go up then sell? Is that share purchase? What do you mean trading instruments?

Even though I sold £12,500 at 58.9p worth buying back say £4,000 at 59p? I won't make the mistake of putting all my money into the same stock again!

 

[counter_violent]

Just buy wait for them to go up then sell? Is that share purchase? What do you mean trading instruments?

Ok thanks. So you were purchasing physical shares (share certificate) and no leverage. Which is called investing.

Trading, is where you use your capital as security and you can then trade the price of those shares (the instrument) .

Investing vs. Trading – What’s The Difference? | InvestNewz

So, it largely depends on what it is you would like to do. Certainly theres no harm in reading around before you rush headlong into the next adventure.

 

[buzzing]

leverage- is that when you borrow money and buy when the stock is going down?

 

[WR1]

best off waiting for lloyds to pullback to 40-45p before re-buying again

the markets MUST ? be nr a pullback - esp if the FED are now leaking the end of QE news
and lloyds usually likes to put in a double top to snare the unsuspecting

but personally prefer Barc

also probably better buying in two tranches - just incase of bigger falls

 

[MalcolmSm1th]

leverage- is that when you borrow money and buy when the stock is going down?

Leverage is when you borrow money to make a trade/investment/whatever.


For example, if you have £500 in your account and you risk £500 then that's not leveraged, but if you decide to spend £3,000 on a trade when you only have £500 then that is leverage.

I personally think that it's the road to madness (then I come to this from a racing background) but I would never use an iota of leverage. Your view may well differ as may others hereabouts.

What I mean to say is: if you don't understand leverage and/or you can't cover any leverage then DO NOT do it.

- Malc

 

[buzzing]

I set my etrade account to buy Diageo at 1215, (it's now at 1220) should I set it around the current price?ah

Yeah won't buy Lloyds back, want to avoid that headeadache, will buy them when they drop below 45p.

I know spreading you investing is important (I mean diversifying and not putting everything into banking)(not leveraging= investing) right? Well if I have RBS and Lloyds and try Diageo, that's 2 areas, how about mining? Or what other areas?

 

[BigPhoenix]

Hi there, just a small contribution if I may.

From a money and risk management perspective, and on a total asset of £20,000 that you mentioned earlier; I personally would allocate just 10% on each position.

So just drop £2,000 on each of your stocks of interest, and select up to five or six stocks maximum; with the remaining £8,000 to £10,000 sitting in cash.

Diversifying into different sectors is great too, if you want to take 2 different companies per sector for a variety of 3 sectors; or 1 of each having a reach in 6 different sectors is up to you... both quite solid approaches in my opinion.

Just my 2 cents...

Cheers
Fadi

 

[buzzing]

Hi there, just a small contribution if I may.

From a money and risk management perspective, and on a total asset of £20,000 that you mentioned earlier; I personally would allocate just 10% on each position.

So just drop £2,000 on each of your stocks of interest, and select up to five or six stocks maximum; with the remaining £8,000 to £10,000 sitting in cash.

Diversifying into different sectors is great too, if you want to take 2 different companies per sector for a variety of 3 sectors; or 1 of each having a reach in 6 different sectors is up to you... both quite solid approaches in my opinion.

Just my 2 cents...


quote




thanks, and with the remaining £8,000-£10,000 just staying in my etrade account or a bank ISA? £20,000 is pretty much all the money in the world that I own!

I will stick with banking, Diageo (drinks), any other areas anyone recommends?

Rio Tinto for mining?

 

[BigPhoenix]

thanks, and with the remaining £8,000-£10,000 just staying in my etrade account or a bank ISA? £20,000 is pretty much all the money in the world that I own!

Yes, you need some cash at hand, you never know... keep them in the bank, or if you really trust your broker and have quick access to that, then yes in your etrade.

Either way, you can't just completely block yourself in stocks. And what if at a later stage the lifetime investment opportunity pops out at you?
You will still have some cash to drop on it while if you were all invested in stocks you would be forced to sell part of your current investment or just let the opportunity pass by.

 

[buzzing]

Yes, you need some cash at hand, you never know... keep them in the bank, or if you really trust your broker and have quick access to that, then yes in your etrade.

Either way, you can't just completely block yourself in stocks. And what if at a later stage the lifetime investment opportunity pops out at you?
You will still have some cash to drop on it while if you were all invested in stocks you would be forced to sell part of your current investment or just let the opportunity pass by.

I guess a bank ISA would be cool, thing is if I have money in the bank I might be tempted to spend it and if I lost my job and went on the dole they would find out about my money compared to if it was in an etrade account and I couldn't claim.

 

[buzzing]

If 2% is too low to put a stop loss on, what % is recommended?

 

[WR1]

could try Kaz
as its a good mover - but be careful, although its already fell alot

also buy and hold is better with good stocks - no point being stopped out for no reason
as its not futures trading

buy and hold works for Buffet - so cant be a too bad an idea
just need good technical analysis for good buying opportunities or work on it so it is good