Beginning to Invest - All questions go here please

Shedite27

Underground wrote: »

Let me ask a potentially stupid question.

I've been looking at the gamblers on WSB and they mainly trade options.

Here's what I don't get. If I buy a call on a stock and it's in the money, deep in the money, I would exercise the option.

The WSB guys sell the option in the above scenario, rather than exercise it.

If I sell an in the money call like the WSB crowd do, aren't I on the hook for it now in the event that the person I just sold it to wants to exercise it? (ie assignment risk)

2 side to look at here.

1. The person who buys it, do they ever actually intend to buy the stocks? Some of the WSB crew who you heard had options that went up 10000%, well they now have the option to buy say 5000 Gamestop shares, even if the striek price was $30, can they really afford to buy $30,000 worth of shares, even if it's just for a few minutes? Much easier to just sell the option for the profit without touching the share.

2. In answer to your last point, yes you could be on the hook for providing the shares. So if you are selling options, it's very risky to do it unless you actually own that amount of shares (ie can provide them if neccessary).

Shedite27

VonLuck wrote: »

It's a fair point regarding index funds as I have my own pension fund separate to this. I am still considering mutual funds and trusts at the moment as I feel they will give me good diversification with the prospect of higher returns than the indices.

That's fair enough. Are you looking at Index funds via Aviva/Zurich etc or going direct? Make sure you understand the charges on any of those. There's a Government Levy, Zurich Fee and Fund Manager Fee to be dedcuted from your fund.

VonLuck wrote: »

That's a useful indication of where to start, thanks. Another question for you - how would you actually build up to the 20/25 individual stocks? Would you do this over the initial 2 months or do you just start off with purchasing a single stock and build up a portfolio slowly over months (years?) after doing thorough research?

I feel like going with just the one to start with will leave me quite exposed.

Yeah I'd try to start with 5/6 at least. But again, that kinda depends on how much you have. A lot of companies have a share price of $100-$300 so if you're using Degiro where you can't buy fractional shares, you probably need to start with $2k. Not sure where that fits with your situation.

Below are 2 posts I put up recently, 1 with Stocks I like currently, and 1 with stocks that a very good stock picker put up recently. Might give ya some ideas.

Shedite27 wrote: »

My "buy and forget" shares for now would be:
Teledoc, Trade Desk, Crowdstrike, Pinterest, Twilio, Spotify, Square, Docusign

Second tier of shares that I'd be surprised if I sell in the next 2 years are:
Sea, Lemonade, Peloton, Fastly, StoneCo, Paypal, Shopify, Datadog, Veeva, Redfin

Shedite27 wrote: »

I mentioned Chris Perruna's annual watchlist and it just got released today. He's an amateur stockpicker, who just seems to like the game, but knows how to spot trends and companies. His watchlist of 15 stocks are below, aligns very closely to my own portfolio and thinking, tech based growth stocks (stocks in bold are the ones I own)

His full analysis is worth 10 minutes of your time

1. Teledoc - TDOC
2. Pinterest - PINS
3. Crowdstrike - CRWD
4. Fastly - FSLY
5. Cloudflare - NET
6. Digital Turbine - APPS
7. Datadog - DDOG
8. Unity - U
9. Peloton - PTON
10. Roku - ROKU
11. Zoom Video - ZM
12. Docusign - DOCU
13. Salesforce - CRM
14. Uber - UBER
15. AirBnb - ABNB

Big caveat that you'll see in the blog is that he believes many of these are very extended currently, so he suggests these for your watchlist rather than immediate purchase.

Bob Harris

Underground wrote: »

Let me ask a potentially stupid question.

I've been looking at the gamblers on WSB and they mainly trade options.

Here's what I don't get. If I buy a call on a stock and it's in the money, deep in the money, I would exercise the option.

The WSB guys sell the option in the above scenario, rather than exercise it.

If I sell an in the money call like the WSB crowd do, aren't I on the hook for it now in the event that the person I just sold it to wants to exercise it? (ie assignment risk)

Buying call options means you dont have to put up all the cash up front just the option premium.
So if you're deep in the money the value of the option will reflect the underlying share price so sell it and take the profits. Why would you take delivery of the shares when that is what you wanted to avoid in the first place?

A call is the right to buy not the obligation. The market maker who sold the calls originally would prefer its not exercised as it saves them having to buy the shares and deliver them to you though, as the expiration date gets closer they will have to start buying in case the option holder wants to take delivery. In the case of game that buying along with shorts trying to cover and people buying long caused the price to go up massively.

VonLuck

Shedite27 wrote: »

That's fair enough. Are you looking at Index funds via Aviva/Zurich etc or going direct? Make sure you understand the charges on any of those. There's a Government Levy, Zurich Fee and Fund Manager Fee to be dedcuted from your fund.

I'm actually looking at trusts at the moment. Seems to be a more attractive investment.

Shedite27 wrote: »

Yeah I'd try to start with 5/6 at least. But again, that kinda depends on how much you have. A lot of companies have a share price of $100-$300 so if you're using Degiro where you can't buy fractional shares, you probably need to start with $2k. Not sure where that fits with your situation.

Below are 2 posts I put up recently, 1 with Stocks I like currently, and 1 with stocks that a very good stock picker put up recently. Might give ya some ideas.

I was thinking 5 or 6 would be a good starting point myself, but don't want to just pick 6 stocks for the sake of it. I appreciate the suggested companies but obviously will have to do my own research into any of them.

Would you advise against blue chip companies to start off with? I know the return is likely to be lower, but at least you have a solid base and can branch off with riskier stocks whilst building up to 20 or so in your portfolio.

JohnK

Bob Harris wrote: »

Buying call options means you dont have to put up all the cash up front just the option premium.
So if you're deep in the money the value of the option will reflect the underlying share price so sell it and take the profits. Why would you take delivery of the shares when that is what you wanted to avoid in the first place?

A call is the right to buy not the obligation. The market maker who sold the calls originally would prefer its not exercised as it saves them having to buy the shares and deliver them to you though, as the expiration date gets closer they will have to start buying in case the option holder wants to take delivery. In the case of game that buying along with shorts trying to cover and people buying long caused the price to go up massively.

Does that mean so you're able to sell on the original call option at a profit rather than creating a new one that you'd be on the hook for? So essentially if I buy a call option from Person A and the share price doubles, rather than taking delivery of the shares at the agreed price, I can sell that existing option to Person B for a profit then if person B actually wants to take delivery of the shares they'd do so from Person A?

Bob Harris

JohnK wrote: »

Does that mean so you're able to sell on the original call option at a profit rather than creating a new one that you'd be on the hook for? So essentially if I buy a call option from Person A and the share price doubles, rather than taking delivery of the shares at the agreed price, I can sell that existing option to Person B for a profit then if person B actually wants to take delivery of the shares they'd do so from Person A?

Yes, person A is the person who writes the option, when you sell it on there is nothing new created. Person A will be assigned if the options are exercised by whoever holds them. As a buyer of a call you'll never risk more than the option premium.

Shedite27

VonLuck wrote: »

I was thinking 5 or 6 would be a good starting point myself, but don't want to just pick 6 stocks for the sake of it. I appreciate the suggested companies but obviously will have to do my own research into any of them.

Would you advise against blue chip companies to start off with? I know the return is likely to be lower, but at least you have a solid base and can branch off with riskier stocks whilst building up to 20 or so in your portfolio.

Absolutely, I started off with things like Starbucks, Nike, Apple, great way to find your feet in the market.

Robson99

Have €500 to €1000 to invest / save monthly.
Don't really have time or knowledge to be watching daily for investing so was thinking of setting an investment PIE on T212 with the following investment trusts

Monks Inv Trust 50% ( good mix)
Scottish MT 15% (riskier than Allianz)
Allianz Tech 15% ( safer than all in SMT)
Pacific Horizon 15% ( best Asian one I can put in )
Hipgnosis Songs 5% ( an alternative kicker )

Long term goal is to save for 8 - 10 years and see then.
Any opinions on above appreciated.

coco0981

Any idea on what the current wait time is for an account on either Degiro or Trading 212. Are they much the same?

FionnK86

Where should someone who hasn't invested a penny go, to learn about investing!? I'm sick paying a grand a month to let KBC give me .5% while inflation takes 1% back! Saving for a mortgage but would like to put about 100pm somewhere I can look to positively!

timetogo1

Has anybody got any good links / podcasts to use to research for emerging markets?

Most of my stocks are in the US and a few in Europe. I'd like to see what I'm missing in the other markets, or at least get some decent sites to start off with.

retalivity

Robson99 wrote: »

Have €500 to €1000 to invest / save monthly.
Don't really have time or knowledge to be watching daily for investing so was thinking of setting an investment PIE on T212 with the following investment trusts

Monks Inv Trust 50% ( good mix)
Scottish MT 15% (riskier than Allianz)
Allianz Tech 15% ( safer than all in SMT)
Pacific Horizon 15% ( best Asian one I can put in )
Hipgnosis Songs 5% ( an alternative kicker )

Long term goal is to save for 8 - 10 years and see then.
Any opinions on above appreciated.

I like hipgnosis as an option, they have recently bought a heap of back catalogues (bob dylan, neil young) and barely moved the needle on the SP. Opened a position myself at 120p.

HillCloudHop

Robson99 wrote: »

Have €500 to €1000 to invest / save monthly.
Don't really have time or knowledge to be watching daily for investing so was thinking of setting an investment PIE on T212 with the following investment trusts

Monks Inv Trust 50% ( good mix)
Scottish MT 15% (riskier than Allianz)
Allianz Tech 15% ( safer than all in SMT)
Pacific Horizon 15% ( best Asian one I can put in )
Hipgnosis Songs 5% ( an alternative kicker )

Long term goal is to save for 8 - 10 years and see then.
Any opinions on above appreciated.

I'm looking at investment trusts too. Pacific Horizon currently has a very high premium (14.4%). Hopefully this will drop in the next couple of months.

Bob24

Robson99 wrote: »

Have €500 to €1000 to invest / save monthly.
Don't really have time or knowledge to be watching daily for investing so was thinking of setting an investment PIE on T212 with the following investment trusts

Monks Inv Trust 50% ( good mix)
Scottish MT 15% (riskier than Allianz)
Allianz Tech 15% ( safer than all in SMT)
Pacific Horizon 15% ( best Asian one I can put in )
Hipgnosis Songs 5% ( an alternative kicker )

Long term goal is to save for 8 - 10 years and see then.
Any opinions on above appreciated.

I personally wouldn’t combine Scottish Mortgage and Pacific Horizon, unless you are clearly aware and happy with their correlations.

Both are managed by the same investment firm and share the same investment strategy (obviously besides the geographical restriction for Pacific Horizon which could be considered an Asia-only Scottish Mortgage). I.e. they are likely to have overlaps and to be quite correlated.

Robson99

Bob24 wrote: »

I personally wouldn’t combine Scottish Mortgage and Pacific Horizon, unless you are clearly aware and happy with their correlations.

Both are managed by the same investment firm and share the same investment strategy (obviously besides the geographical restriction for Pacific Horizon which could be considered an Asia-only Scottish Mortgage). I.e. they are likely to have overlaps and to be quite correlated.

Thanks Bob.
I thought there were some overlaps all right but was kinda working of the fact that SMT + Pac H would still only be 30% of the total. Maybe that's a bit risky. Would you recommend anything in like of Pac H ? Or maybe i should drop it and increase SMT and Allianz

Robson99

Robson99 wrote: »

Thanks Bob.
I thought there were some overlaps all right but was kinda working of the fact that SMT + Pac H would still only be 30% of the total. Maybe that's a bit risky. Would you recommend anything in like of Pac H ? Or maybe i should drop it and increase SMT and Allianz

Read this, free on kindle https://www.amazon.co.uk/Investment-Trusts-Handbook-2021-essentials-ebook/dp/B08HM524XG/ref=tmm_kin_swatch_0?_encoding=UTF8&qid=1613560776&sr=8-1

Bob24

Robson99 wrote: »

Thanks Bob.
I thought there were some overlaps all right but was kinda working of the fact that SMT + Pac H would still only be 30% of the total. Maybe that's a bit risky. Would you recommend anything in like of Pac H ? Or maybe i should drop it and increase SMT and Allianz

If you are happy with Baillie Gifford and their investment framework to handle that chunk of your portfolio, I wouldn't actually discard this combination (they both are very well managed and have performed very well). But I guess I was trying to point out that if you looked at PHI to diversify your portfolio, in spite of the geographical restriction it might not be as much of a diversifier from SMT as one might think (PHI is basically taking the same very growth/tech oriented investment framework of SMT and restricting it to Asia; and while this framework has worked great in the past few years it could change).

If your purpose for PHI is to diversify in East Asia, one alternative recommendation I would make is ATR* which is also well managed but by Schroder and not just focused on growth and tech (meaning it hasn't performed as handsomely as PHI recently, but it still performs very well and in case of trend reversals it shouldn't be as correlated to SMT as PHI would be).


* details here: https://www.schroders.com/en/uk/private-investor/fund-centre/funds-in-focus/investment-trusts/schroders-investment-trusts/schroder-asian-total-return-investment/

Robson99

Lilian Plain Ponytail wrote: »

Read this, free on kindle https://www.amazon.co.uk/Investment-Trusts-Handbook-2021-essentials-ebook/dp/B08HM524XG/ref=tmm_kin_swatch_0?_encoding=UTF8&qid=1613560776&sr=8-1

Cheers Ex

Robson99

Bob24 wrote: »

If you are happy with Baillie Gifford and their investment framework to handle that chunk of your portfolio, I wouldn't actually discard this combination (they both are very well managed and have performed very well). But I guess I was trying to point out that if you looked at PHI to diversify your portfolio, in spite of the geographical restriction it might not be as much of a diversifier from SMT as one might think (PHI is basically taking the same very growth/tech oriented investment framework of SMT and restricting it to Asia; and while this framework has worked great in the past few years it could change).

If your purpose for PHI is to diversify in East Asia, one alternative recommendation I would make is ATR* which is also well managed but by Schroder and not just focused on growth and tech (meaning it hasn't performed as handsomely as PHI recently, but it still performs very well and in case of trend reversals it shouldn't be as correlated to SMT as PHI would be).


* details here: https://www.schroders.com/en/uk/private-investor/fund-centre/funds-in-focus/investment-trusts/schroders-investment-trusts/schroder-asian-total-return-investment/

Thanks Bob.
I had ATR initially selected but the PIE option in T212 would not let me select it as ATR appear to only sell in full shares. I might forget about the PIE option and just invest in each of the options individually either Monthey or No Monthly. Not a lot of extra work ...I was being a bit lazy.

strandsman

Any chance i could get a referal for t212?
Thanks

TalleyRand83

CGT question here, casual investor here, enjoying picking some select companies using revolut which suits me.

Wondering how, by using, revolut my potential tax could be calculated.....seems like it would be a bit messy?

Also, if I sold shares of company A and re-invest to company B before realising the money is that considered taxable or not?

Lmkrnr

Is buying company share options free Money? Providing the company is stable.

TalleyRand83

TalleyRand83 wrote: »

CGT question here, casual investor here, enjoying picking some select companies using revolut which suits me.

Wondering how, by using, revolut my potential tax could be calculated.....seems like it would be a bit messy?

Also, if I sold shares of company A and re-invest to company B before realising the money is that considered taxable or not?

Once you sell the share you have "realised" the money and have to pay tax!

So many are making the mistake in thinking that if they "sell" within the app and just buy more shares they do not need to pay tax because they did not withdraw the cash from the broker. This is wrong, and these people will get murdered by the taxman when he turns his eye to the burgeoning retail investor scene (which WILL happen).

As for calculating, Revolut will give you a statement and you can do up a share register and calculate that way. Revolut is not very good at this.

finbarrk

Anyone suggest a fund based on the Asian markets? I have looked at the Schroder one that was mentioned above.

TalleyRand83

Maybe this has been answered elsewhere in the thread many times, where is a good starter website, podcasts, twitter feeds etc to get a top line skim view of stock picks.

I'm not the type, at this stage, to deep dive into companies quarterly reports and if possible would rather have it spoonfed to me to a degree

Shedite27

TalleyRand83 wrote: »

Maybe this has been answered elsewhere in the thread many times, where is a good starter website, podcasts, twitter feeds etc to get a top line skim view of stock picks.

I'm not the type, at this stage, to deep dive into companies quarterly reports and if possible would rather have it spoonfed to me to a degree

Signing up for a stock picking service like MyWallSt is invaluable. Stick to their stock list and you won't go wrong.

@cperruna has a great list on twitter for free

dendof

Shedite27 wrote: »

Signing up for a stock picking service like MyWallSt is invaluable. Stick to their stock list and you won't go wrong.

@cperruna has a great list on twitter for free

Any recommendations for trading platform for fractional shares?
I'm already on DeGiro, but no sign of waiting list opening for Trading212.

Have a sub for MyWallSt and would like to get on some stock options that I can't afford outright.

Shedite27

dendof wrote: »

Any recommendations for trading platform for fractional shares?
I'm already on DeGiro, but no sign of waiting list opening for Trading212.

Have a sub for MyWallSt and would like to get on some stock options that I can't afford outright.

I used Revout for any fractional shares (Amazon). Then degiro for full shares

strandsman

strandsman wrote: »

Any chance i could get a referal for t212?
Thanks

thanks for referal @timetogo1, @outonawing

pioneerpro

retalivity wrote: »

I like hipgnosis as an option, they have recently bought a heap of back catalogues (bob dylan, neil young) and barely moved the needle on the SP. Opened a position myself at 120p.

They didn't get Bob Dylan, he refused an offer of $400m from them, and they only have the worst 50% of the Neil Young Catalogue so be careful with your due diligence there!

It's a great idea and some valuable IP, but only for the guy in charge in so far as their appreciation in relation to the NAV over the last few years. I'm very skeptical about the dividend structure and future share dilution in terms of the actual share price ever spiking, but at penny stock prices I'd love to be proven wrong. Anyone done much digging here?

Finical

If I have bought shares while living in Ireland, but decide to leave the country and reside somewhere else. How does CGT work if I sold some shares. Are you liable to the Irish tax system or would you be using the country you've moved to?

pioneerpro

Finical wrote: »

If I have bought shares while living in Ireland, but decide to leave the country and reside somewhere else. How does CGT work if I sold some shares. Are you liable to the Irish tax system or would you be using the country you've moved to?

Move to Belgium, wait 3 years is basically the short answer.

https://www.revenue.ie/en/jobs-and-pensions/tax-residence/how-to-know-if-you-are-ordinarily-resident-for-tax-purposes.aspx

Finical

pioneerpro wrote: »

Move to Belgium, wait 3 years is basically the short answer.

https://www.revenue.ie/en/jobs-and-pensions/tax-residence/how-to-know-if-you-are-ordinarily-resident-for-tax-purposes.aspx

Thank you! Planning on moving to the UK once this pandemic is dust.

VonLuck

Anyone have any tips on overcoming indecision when analysing stocks? For any company I'm looking at I can always find a reason not to buy shares. It doesn't help that my first foray into buying shares last week has resulted in a 5% drop already!

Seems like anything is a gamble right now, especially as covid could be a non-issue in a few months or else it could be prolonged due to the different variants. I know no one has a crystal ball, but how do you convince yourself to make that leap of faith?

pioneerpro

VonLuck wrote: »

Anyone have any tips on overcoming indecision when analysing stocks? For any company I'm looking at I can always find a reason not to buy shares. It doesn't help that my first foray into buying shares last week has resulted in a 5% drop already!

Zoom out your chart to a 6 month view.
Diversify your portfolio.
Realise the current volatile state of the market and look for *bargains*, and try not to buy close to all-time-highs

If you're worried about week-to-week movement you're probably not analysing stocks, and you might instead be weighting the risk of swing trading based on public sentiment.

If you like a company, and believe in its fundamentals, then stop second guessing yourself based on the normal stuff that happens day to day like shorting, deleveraging, and sector sentiments. Unless there's some major news from the company or the market (lawsuit, product line, regulation) then its just the market being the market. Bigger boys doing bigger things that you can't mitigate against or foresee.

Seems like anything is a gamble right now, especially as covid could be a non-issue in a few months or else it could be prolonged due to the different variants. I know no one has a crystal ball, but how do you convince yourself to make that leap of faith?

The market is in the middle of a bull run and the overall US sentiment is that retail and consumers are absolutely rearing to go. Inflation has basically gone negative in Europe and is barely raising its head in the US. It's going to be a money orgy of consumerism in certain sectors when restrictions ease up - you can already see how leveraged big hedge funds are in the 'covid recovery' sectors like travel and retail.

In short, don't look from a European or Asian perspective. The NASDAQ and NYSE are all you should be worried about, and sentiment is wildly different over there atm in relation to COVID.

VonLuck

pioneerpro wrote: »

Zoom out your chart to a 6 month view.
Diversify your portfolio.
Realise the current volatile state of the market and look for *bargains*, and try not to buy close to all-time-highs

If you're worried about week-to-week movement you're probably not analysing stocks, and you might instead be weighting the risk of swing trading based on public sentiment.

Oh I totally understand that there can be market dips, and I've been looking long-term, but you can't help but feel a bit demoralised when your first venture is already down 5% after a week in the market, even though it was expected at some stage. It causes you to overthink and perhaps behave a bit more cautiously. It's a bit of a subconscious behaviour as I know if I was doing simulation trading I would have no qualms with investing now and would likely be performing better.

pioneerpro wrote: »

If you like a company, and believe in its fundamentals, then stop second guessing yourself based on the normal stuff that happens day to day like shorting, deleveraging, and sector sentiments. Unless there's some major news from the company or the market (lawsuit, product line, regulation) then its just the market being the market. Bigger boys doing bigger things that you can't mitigate against or foresee.

That's a fair point and I am approaching it with that view, but with the outcome of Covid looming, as well as a potential market bubble bursting it makes you a bit more apprehensive. Although it tends to hold true that time in the market is better than timing the market.

pioneerpro wrote: »

The market is in the middle of a bull run and the overall US sentiment is that retail and consumers are absolutely rearing to go. Inflation has basically gone negative in Europe and is barely raising its head in the US. It's going to be a money orgy of consumerism in certain sectors when restrictions ease up - you can already see how leveraged big hedge funds are in the 'covid recovery' sectors like travel and retail.

In short, don't look from a European or Asian perspective. The NASDAQ and NYSE are all you should be worried about, and sentiment is wildly different over there atm in relation to COVID.

Well American markets appear to be dipping at the moment, primarily in tech. I would have thought to diversify into the European market, especially with the positivity from the UK after Boris's announcement yesterday.

pioneerpro

VonLuck wrote: »

That's a fair point and I am approaching it with that view, but with the outcome of Covid looming, as well as a potential market bubble bursting it makes you a bit more apprehensive.

If you honestly believe there's a market bubble and/or a pandemic based recession looming, stay out of the market. Nothing any 3rd party will say will mitigate your fears if that's the real problem.

Although it tends to hold true that time in the market is better than timing the market.

You know the quotes, time to start living by them if you're holding long

Well American markets appear to be dipping at the moment, primarily in tech. I would have thought to diversify into the European market, especially with the positivity from the UK after Boris's announcement yesterday.

No, they're just rotating. Out of tech, into boomer stuff like travel, retail and oil in particular with the recent crap in Texas. Leave the macroeconomics up to Bloomberg if you're not au-fait with the Index and futures markets would be my advice.

Finical

Can you include commission fee when calculating cost of shares bought when calculating the CGT owed?

Nimil

Finical wrote: »

Can you include commission fee when calculating cost of shares bought when calculating the CGT owed?

Yes. Calculation is based on net profit, which is (net proceeds) - (cost of acquisition). So you can subtract fees from the sale and add them to the purchase.

Example: buy 1 share for €100 & €5 purchase fee, sell it 6 months later for €150 and €10 fee, net profit is (150-10) - (100+5) = 140 - 105 = €35

Note that this is only for transaction fees. If your broker charges a monthly or yearly maintenance or connectivity fee, then that can't be included as a cost for cgt calculations.

Finical

Nimil wrote: »

Yes. Calculation is based on net profit, which is (net proceeds) - (cost of acquisition). So you can subtract fees from the sale and add them to the purchase.

Example: buy 1 share for €100 & €5 purchase fee, sell it 6 months later for €150 and €10 fee, net profit is (150-10) - (100+5) = 140 - 105 = €35

Note that this is only for transaction fees. If your broker charges a monthly or yearly maintenance or connectivity fee, then that can't be included as a cost for cgt calculations.

Legend, thank you so much for the reply. I really appreciate that. Explained it perfect!

I'm referring to the commission revolut charge can that be included as a cost?

pioneerpro

Finical wrote: »

Legend, thank you so much for the reply. I really appreciate that. Explained it perfect!

I'm referring to the commission revolut charge can that be included as a cost?

Yeah, commission is part of the acquisition of your capital asset. Stuff like real-time trading info or charting add-ons for an online exchange can't if you're PAYE, no more than a 2nd monitor for trading can.

So if you had to pay a sub per month for Revolut's service, that can't be deducted, but any cost inherent in the trade itself can (routing fee/commission - i.e. the €7.50 per trade DeGiro takes on Frankfurt exchange).

Finical

Nimil wrote: »

Yes. Calculation is based on net profit, which is (net proceeds) - (cost of acquisition). So you can subtract fees from the sale and add them to the purchase.

Example: buy 1 share for €100 & €5 purchase fee, sell it 6 months later for €150 and €10 fee, net profit is (150-10) - (100+5) = 140 - 105 = €35

Note that this is only for transaction fees. If your broker charges a monthly or yearly maintenance or connectivity fee, then that can't be included as a cost for cgt calculations.

pioneerpro wrote: »

Yeah, commission is part of the acquisition of your capital asset. Stuff like real-time trading info or charting add-ons for an online exchange can't if you're PAYE, no more than a 2nd monitor for trading can.

So if you had to pay a sub per month for Revolut's service, that can't be deducted, but any cost inherent in the trade itself can (routing fee/commission - i.e. the €7.50 per trade DeGiro takes on Frankfurt exchange).

Thank you both so much. This forum is an absolute blessing.

As someone with a very limited knowledge of the stocks and shares what are the benefits to investing in Ireland.

Tax on ETF’s seem fairly harsh so possibly not a great investment.
Any articles you read tell us to diversify so if ETF’s are not the way to go are people buying loads of separate stocks? Is that not really difficult to manage time wise?

I’m sure I’m missing something very obvious but more of an observation.

endainoz

[Deleted User] wrote: »

As someone with a very limited knowledge of the stocks and shares what are the benefits to investing in Ireland.

Tax on ETF’s seem fairly harsh so possibly not a great investment.
Any articles you read tell us to diversify so if ETF’s are not the way to go are people buying loads of separate stocks? Is that not really difficult to manage time wise?

I’m sure I’m missing something very obvious but more of an observation.

Isnt buying into an etf the literal definition of diversification?

Are the tax and charges really that high to put people off the idea? I might start paying into one once revolut start offering the option.

Shedite27

Deleted User wrote: »

As someone with a very limited knowledge of the stocks and shares what are the benefits to investing in Ireland.

Well first off, savings interest rates are zero, so the benefit of investing is making more money from your extra funds. Yes you need to pay tax on the gain, but keeping 67% of gains is better than keeping 100% of no gain.

Deleted User wrote: »

Tax on ETF’s seem fairly harsh so possibly not a great investment.
Any articles you read tell us to diversify so if ETF’s are not the way to go are people buying loads of separate stocks? Is that not really difficult to manage time wise?

I’m sure I’m missing something very obvious but more of an observation.

If you buy an ETF, you get taxed 41% on the gain, and get charged the gain every 8 years.

If you buy a basket of 20/30 stocks, you only get charged 33% on the gain, and get charged the gain when you sell (so in theory could hold and let it grow for 30 years).

A lot of people think they can outperform the ETF's by going it alone, so your gain can be bigger than ETF's too. Yes, it is more time consuming so I guess it's how much work you're willing to put in for the extra €'s

endainoz

endainoz wrote: »

Isnt buying into an etf the literal definition of diversification?

Are the tax and charges really that high to put people off the idea? I might start paying into one once revolut start offering the option.

Yes the ETF would be for sure, it just seems the tax is fairly harsh and then there is the 8 year rule from what I can tell, if you wish to invest for 15-20 years it seems fairly difficult for your average Joe (possibly I’m over complicating it in my head)

Shedite27

Shedite27 wrote: »

Well first off, savings interest rates are zero, so the benefit of investing is making more money from your extra funds. Yes you need to pay tax on the gain, but keeping 67% of gains is better than keeping 100% of no gain.


If you buy an ETF, you get taxed 41% on the gain, and get charged the gain every 8 years.

If you buy a basket of 20/30 stocks, you only get charged 33% on the gain, and get charged the gain when you sell (so in theory could hold and let it grow for 30 years).

A lot of people think they can outperform the ETF's by going it alone, so your gain can be bigger than ETF's too. Yes, it is more time consuming so I guess it's how much work you're willing to put in for the extra €'s

Appreciate the response, makes sense and like I say I’m certainly no expert.

True about the savings interest rates here, next to useless. I’m certainly interested in investing in the future but I would like to have a thorough understanding before investing anywhere

Jim2007

Deleted User wrote: »

As someone with a very limited knowledge of the stocks and shares what are the benefits to investing in Ireland.
.

None if you take the cold, calculating approach, in fact holding a large block of Irish stocks over the long haul can have a serious impact on performance.

The majority of Irish stocks fall into the category of penny stocks and micro caps, in other words the precise stocks the literature on portfolio construction warns you against loading up on. At best they should make up a low single digit in any Euro Group portfolio.

Jim2007

Jim2007 wrote: »

None if you take the cold, calculating approach, in fact holding a large block of Irish stocks over the long haul can have a serious impact on performance.

The majority of Irish stocks fall into the category of penny stocks and micro caps, in other words the precise stocks the literature on portfolio construction warns you against loading up on. At best they should make up a low single digit in any Euro Group portfolio.

Food for thought certainly, it’s all a bit of a minefield to me but will absolutely take advice of those more knowledge than myself.

Jim2007

Deleted User wrote: »

Food for thought certainly, it’s all a bit of a minefield to me but will absolutely take advice of those more knowledge than myself.

Read, read, read, there are plenty of good reading lists out there