Trading vs Investing

I decided that if I was going to hold a high yield portfolio of large caps I needed a completely different psychology from smallcap value/growth stocks. A part of this is to turn my back on trading and consider the portfolio as an investment. First I defined how I wanted to separate trading from investment. Trading (for me) is buying and selling with an aim of increasing capital from selling at a higher price than I purchased. Investing is putting capital to work to provide an annual return. If I can get capital appreciation on my investment capital over the long term then all the better but the priority is annual return. So, the yielders were initially purchased in small quantities with the aim of increasing the holding when markets or stock price fall, so really I want the price to fall in order that I can invest more. Psychologically I win whether the shares price rise or fall. The only time I intend to sell the stock is when it goes off the filter. When I see a point where I feel the markets will fall or a point of resistance is approaching I intend shorting FTSE 100 to the value of the portfolio in an attempt to lock profits but I won’t sell the stocks. I’m currently short ftse100 but if it breaks through resistance I’ll close the trade.

Moving Brokers

I am in the process of moving ISA away from Selftrade….but I can’t decide between HL and Barclays. Easier and cheaper with HL (they have agreed to pay all my costs) but I worry about whether Hargreaves Lansdown will shaft me at some point.

Right. Extensive research on what’s wot if I were to move from Selftrade. That is…move my ISA, I can’t move my pension.

Fastrade – Bonjovi is good looking isn’t he – want £30per annum per corporate bond holding. They won’t pay anything towards my move. Pass.

Barclays don’t trade Corporate Bond/gilts/pibs s online and want £65 per trade, they are having a larf. They will pay £150 towards the move (estimated £400)

Hargreaves Lansdown- don’t allow online trading in Corp Bonds/Gilts/Pibs and want…hmm…was it £45 per trade. They will pay all my moving costs.

Both Fastrade (part of Charles Stanley) and Barclays charge an annual fee.

TDW is ignored because their website is too horrible to contemplate. Doesn’t work with Firefox and finding data requires a degree in computer science.

We all know I hate the changes at Selftrade but it is more than that. My pot is getting big enough for me to worry slightly at having too many eggs in that basket.

The rules say that my shares should be safe if Selftrade bites the dust. That assumes there is no fraud and they are obeying the nominee rules. Who says they are?

There is £50k compensation if they aren’t or if they go bust while some shares haven’t settled. That’s hopeless.

There is £85k compensation if one of Selftrade’s banking providers goes bust. Can’t worry about that but I can worry about whether HL use same as Selftrade…in which case nothing is gained by moving. There is only one £85k paid out per provider that goes bust.

The overwhelming risk is fraud. If Selftrade get into trouble (transactions were down 37% last year, not particular to them but that’s the number), there is more likely to be some wrong-doing with how our shares/money held. They are part of SocGen…so don’t say it can’t happen.

I am going with Barclays but will leave the Corporate Bonds/Pibs and Gilts with ST. I am therefore attempting a partial transfer. Gulp. Why Barclays? Because if they go bust we’ll all be fighting each other for a spot in Ebol’s garden so it really won’t matter.