In common with most people I’m not happy with the interest I’m getting from banks and building societies so after Santander reduced their interest rate to 1.5% I decided to do something about it. No not something sensible like investing in an ISA but something probably very very stupid but hopefully fun. A few months ago I opened an account with X-O, pumped a few grand into it and bought some shares. This is what I bought/sold and why.
I made a few decisions before I started.
- I would buy at least £1000 worth of each share. This is because the cost of buying and selling would be too great (percentage wise) to buy any less. If buying £1000 worth of shares using even a cheap broker like X-O where the dealing fees are £5.95, the cost of buying and selling (with 0.5% stamp duty) is approx 1.6%. This means your shares have to increase by 1.6% before you make a penny. Obviously buying more means the purchase fees are less of an issue but I am a novice and don’t have that much in savings so I’ll stick with £1000 at a time for now.
- I will try to spread my money across 8-10 different shares from different sectors to try and reduce the risks. At the minute I have 7 different shares as I’m still feeling my way.
- The reasons for buying and selling I’d make up as I go along. Smart thinking eh
26/1/17 Capita email@example.com Bought because I thought they might be in the running for a contract I knew was up for grabs.
31/1/17 Jersey Oil and Gas 700@141p Bought because I figured the price of oil can only go up and I liked the way the price was rising (they happened to be the biggest riser that day).
Being very unsure I’d done the right thing I sat for a couple of weeks to see what would happen. To my surprise JOG did very well so I decided to buy some more plus (because they could only get better, right?) RBS
14/2/17 Jersey Oil and Gas 500@190p
14/2/17 Royal Bank of Scotland firstname.lastname@example.org
Next time I’ll tell you what happened to the shares I bought.