A friend of mine recently told me about a profit he made while trading penny shares in a British Oil Company. His thinking behind the purchase was “They’ve fallen substantially so they have to recover, right?” This proved to be a good decision as eventually the share prices rose and he ended up making a profit. The reality is that, although this was a shrewd investment, he was lucky to make a profit and could have quite easily had his fingers burnt...
Temptation
So OK, occasionally you may be tempted to play around with a small percentage of your savings in penny shares. They offer an element of excitement and it can be rewarding to see how well your investment has performed. However it’s unlikely that you would gamble your entire investment portfolio in this way. The risk of loss far outweighs the potential return and an investment portfolio of £100,000 is completely different to a few hundred pounds in penny shares.
Inside Knowledge
Although there appears to be a significant amount of information and knowledge to be gleaned in order to continually be successful at trading on the stock market, remember what you read about in the ‘high street media’ is old news, every adviser, fund and portfolio manager will have already known about this information before or at the time it was happening.
Leave it to The Pro's
In order to successfully invest our savings for long term consistent returns, without leaving returns to luck it is always best left to a professional. As financial advisers we have access to a vast array of data and information that we use to analyse portfolios to match clients required outcomes. Along with over 30 years of experience and presence in the industry we can help you ensure your money is invested in an investment portfolio tailored to your needs.
Make Your Savings Work
We all want our savings to work as hard as possible, especially given the low rates of interest offered by the banks and building societies at present. If you would like to speak with us about how we could help yours to work harder without risking it all, please call us on 01246 296060 or connect with us via our website.
Article by Daniel Johnson, Investment Co-ordinator for Charles James Financial Planning Ltd which is authorised and regulated by the Financial Conduct Authority