LM portfolio as at 23/10/2020:
| Code | Sector | Date Bought | Cost | Value | Gain/Loss |
|---|---|---|---|---|---|
| LM026 | ETF | 14/10/2020 | £1020 | £1020 | (0.21%) |
As hinted in the last update, the LM portfolio has a new investment. A small portion of the fund has been put into a FTSE 250 ETF.
Mentioning the actual investment goes against my statement that I would never reveal what shares I have bought so I can't be accused of giving financial advice.
However, this isn't a single share, it's an ETF of a huge market index.
And if you buy anything based on reading that someone else bought it you're in trouble.
Years and years ago I had some random HSBC investment account as I had my current account with HSBC. After reading the Money Observer magazine, I followed one of their share tips and bought a grand's worth of a company called Novar. It went nowhere and I ended up selling it all and getting back about £800.
Though the magazine was happy to tip the purchase of this share, I don't remember reading any advice on when to sell it. Likely they were just hoping it would go up at some point so they could claim a profit.
Had I not become bored after a few months and sold it I would've been waiting months or years for more advice. Eventually the company was taken over.
It was a learning experience. I lost a little bit of money and found out that the magazine tipsters don't have any specialist insight.
More recently I listened to a podcast where two amateur UK investors - they're certainly amateurs though they may try to convince the audience otherwise - warned their listeners to "be careful who you listen to on Twitter".
You don't say.
I'm not sure if it's sadder that they felt the need to say this or there are people out there who need to be told this.
These two clowns spent ten minutes talking about how you shouldn't listen to just anyone on Twitter but take advice only from those who know what they are talking about.
Like it's easy to tell the difference.
I have an even easier rule - don't listen to anyone on Twitter. Or Facebook. Or any other time-sapping, brain-cell killing social media site.
In fact, don't listen to anyone else.
Instead, go out and read around the subject. Then make smaller initial investments and add to the position only if it moves into profit. Take baby steps. Keep notes and records about why you bought something or sold something or added to a position.
When you're risking small amounts of your portfolio you can afford to get some investments wrong. Call it a tuition fee.
And with records of where you got it right and where it went wrong you can look back and learn as you go.
The only way investing could possibly work is by making your own decisions. Make your own buying and selling rules, set your own limits on adding to trades and stop losses. Ignore anyone else's tips or share-buying recommendations.