Share Investment Opportunities and Free Shares

Share Investment Opportunities and Free Shares

Stock Investing Opportunities

Share or stock investments contribute significantly to my financial lifestyle in retirement. So share investment opportunities need to be safe and secure – despite Covid19 issues! I have a SIPP with Hargreaves Lansdown, ISA portfolio with iWeb, and now a new ISA portfolio with Trading212 (free share – more later!). The HL Sipp is used to withdraw monthly income, iWeb is primarily stocks and Trusts with good dividends, and Trading212 for investing in foreign stocks. They all offer good value, especially iWeb at £5 per share deal, and NO commission on Trading212 deals (no stamp duty too on US stocks).

Trading212 Review and Free Share

Trading212 is a relatively new platform (app and website) but its popularity is rising sharply. In addition to the NO commission charges, it allows fractional quantities for expensive stock prices. So for example, you could buy a 0.1 share in Amazon or Facebook! You can invest in shares, ETFs, etc in many markets including LSE, Nasdaq, Dow and European markets. With over 1700 stocks currently available and in May 2020 they are adding 200 additional stocks per week so the portfolio will be quite comprehensive. Charting is reasonable with the ability to add indicators, change timeframes, etc. For investors who like to study the fundamentals, the app yields: Company Details, Key ratios, Financial summary, Income statement for a number of years (with graphs), Balance sheet, and Cash Flow. So far I am very impressed with the service. They must make money on the buy and sell spread – but it seems reasonable. To encourage adoption, you can gain a free share – just use this link. (Declaration: I will receive a share too!)

Share Investment Opportunities
Trading212 Company Finances extract

Choosing Investments

To my mind investing implies a long term time frame. Trading or day trading is short term, and requires a totally different mindset. During the pandemic, I have sold very little in iWeb or HL portfolios as I do not want to accept losses. Fortunately, I held about 30% in cash before the pandemic as I thought the market was overheating. So have been buying shares in solid companies which have attractive dividends partly due to rock bottom share prices in some sectors. For example, the oil sector seems oversold and in the post-pandemic timeframe, the oil price will recover. Hence purchases of BP and Shell – although the dividend slash for Shell was disappointing. Others include Aviva, WPP, Legal & General and Diageo – all have significant upside according to analyst predictions on TipRanks.com – namely, BP 39%, WPP 23%, and Webull.com: Shell 38%, Aviva 45%, LGEN 17%, DGE 2%  (still love this one!).  So hopefully not too much downside risk. On the more risky side, I was tempted by Carnival – just a small stake though. These are not short term trades but dividend investments for the future! Prices could easily drop further.

What has been apparent in the pandemic is the prominence of technology disruptors: the FANGs plus Microsoft and others such as Zoom, Ocado, Shopify, Peloton, eBay, Netflix, biotechnology sector and many others. Such stocks are primarily on the US markets such as S&P, Nasdaq, etc. This is where Trading212 is so useful for trading international stocks. So one of my strategies is to invest in these disruptors during Covid19. Of course, post-pandemic, when normal conditions return then traditional companies may recover and these disruptors may see their market decline so caution is needed as always.

Stock Investment Advice

There is an enormous range of investment advice online from financial websites such as Yahoo Finance (useful for company fundamentals), Hargreaves Lansdown, ii.co.uk, Morningstar.co.uk (and may more!) through to Youtube channels with “gurus” offering advice and strategies (try ZipTrader, Financial Freedom and Education. Adam Khoo). Apps for Android and Apple are rife – WeBull and Trading212 have already been mentioned above. Unfortunately, Webull prices for LSE shares have been withdrawn but the extensive financial information is extremely useful).

There is a growing number of companies providing a “robot” service. Effectively, they work out your risk profile, and recommend a theme or fund. They make the decision where to invest. One service I use is Tickr. Tickr describes itself : “Our aim is not only to make investing easy for everyone, regardless of wealth or financial knowledge, but to have a positive social impact too….We are an impact investment app…To us, impact investing is about investing in companies that have the potential to change the world – in a positive way.” I especially like the way you can use roundup from your bank account to drip feed into Tickr. Find tickr on Google Play store (my reference code is howardf8577 – thanks).

DIY Investing

For the brave-hearted in today’s Covid environment! Investing in my mind is for the long term. So you are looking for solid companies that are likely to survive the pandemic and the recession. Warning: DIY investing can be rewarding but you can lose your capital too. One of the tools I currently use is Chartmill.com to find potential investments, and also use TipRanks.com for Analyst reviews (particularly on US stocks). Then finally check Financial reports on Trading212. I like companies that are cash rich (with increasing revenues), and little debt. Another tick if they are market leaders or offer a unique service or product.

So what is the best share for investment? If that was easy then we’d be rich! So any tool that helps you to time an investment would be helpful. This is where Chartmill.com is a boon. (Currently, they have a free trial, and then ongoing limited use. There are 3 subscription offers.) There are many ways you can use this – for example to pick companies on financial performance or using technical indicators and strategies. However, I head to the Stock Screen option. I narrow it down choosing London Stock Exchange Only (or Nasdaq only) on the General Tab, and then switch to the Indicator tab and change ChartMill Technical Rating to 9 – 10,  ChartMill Setup Rating to 8 – 10 and then Trend Intensity to 100 – 130. As you change the settings the results will update below.

Chartmill screener results
Chartmill Screener Results

 

In this example, IShares is a possibility so click on the IShares for more analysis and contemplation! Next, check the Technical analysis page – currently the Trade setup is only 8. A value of 10 is preferred! However, Chartmill does suggest a possible trade setup:

chartmill trade setup
Chartmill Trade Setup

 

To discover more about Chartmill.comclick here.

Risk Management

It is important that you have an effective Risk Management strategy in place. The Chartwell tool suggests a suitable Entry price and a Stop Loss level to minimise any losses. In the wildly fluctuating markets found int the pandemic this may be important to you. There are many more tools on Chartmill, documentation and training videos to aid use.

Other Investment Resources

Here are some other financial investment resources not mentioned above that would be useful in tracking down share investment opportunities:
Daily Telegraph Financial Hub – live updates on share prices, bonds, commodities and currencies from UK and global markets and find the latest financial news.
Freetrade – simple, beautiful and free (alternative to Trading212) – free share too
Stocktwits – free stock discussions, prices, and market sentiment with millions of investors and traders. Stocktwits is the largest social network for finance. Geared to US markets though.

Some Share Screeners:
StockFetcher is a powerful and easy-to-use stock screener.
Finwiz – Stock screener for investors and traders, financial visualizations.

Charting:
TradingView.com – Live quotes, stock charts and expert trading ideas. TradingView is a social network for traders and investors on Stock, Futures and Forex markets!
Teletrader.com – quotes of indices/stocks for performance-, chart and quoteboard view.
Barchart.com – provider of real-time or delayed intraday stock and commodities charts and quotes with extensive charting.

News and Views:
Proactive Investors – Run by investors (for investors) with in-depth comment, analysis, financial news, press releases and share price data
Armchair Trader – latest stock picks on UK and international shares, currencies, commodities and other alternative investment ideas

Caution:

The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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Editor

Retired from 1st for French Property - now enjoying my Senior Gap years!

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