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Beginning to Invest - All questions go here please

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Comments

  • Registered Users Posts: 2 Zulare


    Hi,

    Does anyone know of a trading platform that provides Realtime order book data for the Irish Stock Exchange (Euronext Dublin)? I've searched everywhere but can't find anything.

    Thanks.
    Z


  • Registered Users Posts: 447 ✭✭iAcesHigh


    How do I pay CGT online through myAccount? I requested ROS to enable me the option, but although they said it is ready on my account now I don't seem to be able to find it ...


  • Registered Users Posts: 2,994 ✭✭✭Taylor365


    iAcesHigh wrote: »
    How do I pay CGT online through myAccount? I requested ROS to enable me the option, but although they said it is ready on my account now I don't seem to be able to find it ...
    Payments/Repayment section >> Make a Payment >> Tax >> Capital Gains Tax >> Select year and amount.


  • Registered Users Posts: 580 ✭✭✭ddarcy


    I have an odd one that I can’t quite figure out in relation to CGT.

    My company has a programme where you put part of your salary away for 6 months. At the end of the 6 month period they sold shares at the lower price of the start of the period or the end of the period.

    For example: the stock was trading at €3 at the start and €6 at the end. I save €3000, so I was given 1000 shares. Obviously I had to pay the taxes on the differential, so the €3 by 1000, which I did.

    My question is with CGT do I use the 3 out the 6? I’ve technically got them all at 6 as I was taxed on that amount or would it be the 3, which they were bought at?

    Thanks


  • Registered Users Posts: 1,564 ✭✭✭RugbyLover123


    If I am looking to buy and hold long term on an ETF on DeGiro which one would be best to start with?

    I’ve seen the Vanguard Total Stock Market recommend. Does being in Ireland using DeGiro have any impact on investing in that?


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  • Registered Users Posts: 467 ✭✭Dave1711


    If I am looking to buy and hold long term on an ETF on DeGiro which one would be best to start with?

    I’ve seen the Vanguard Total Stock Market recommend. Does being in Ireland using DeGiro have any impact on investing in that?

    Started investing myself lately and Irelands tax laws around ETFs slash their value really you pay tax on them every 8 years regardless of if you have sold shares or not and then have high taxes again when selling or on dividends so the general consensus is to avoid them with how the current tax laws are


  • Registered Users Posts: 10,905 ✭✭✭✭Bob24


    Dave1711 wrote: »
    Started investing myself lately and Irelands tax laws around ETFs slash their value really you pay tax on them every 8 years regardless of if you have sold shares or not and then have high taxes again when selling or on dividends so the general consensus is to avoid them with how the current tax laws are

    Stupid law either drafted by people who didn't understand what they were doing or by people who were OK with wealth confiscation.

    Forcing someone to pay a tax on capital gains on an asset they are not even selling is pure confiscation as far as I am concern (I have no problem with taxation and with the government setting whichever rate they want as long as it is done in a transparent and honest way, but charging a tax on gains when in reality there isn't any realised gain is pure dishonesty).

    But yeah this is a reason why I avoid ETFs. While they are actively managed and hence not the same thing, British Investment Trusts can be an interesting alternative as they are publicly listed companies rather than investment funds, hence not subject to that 8 years rule.


  • Registered Users Posts: 17,577 ✭✭✭✭Mantis Toboggan


    Who brought in the 8 year rule?

    Free Palestine 🇵🇸



  • Registered Users Posts: 3,462 ✭✭✭Bob Harris


    Who brought in the 8 year rule?

    Was introduced in the Finance Act 2006 so that was Bertie and Brian Cowen was his finance minister.


  • Registered Users Posts: 26 salmagoo


    ddarcy wrote: »
    I have an odd one that I can’t quite figure out in relation to CGT.

    My company has a programme where you put part of your salary away for 6 months. At the end of the 6 month period they sold shares at the lower price of the start of the period or the end of the period.

    For example: the stock was trading at €3 at the start and €6 at the end. I save €3000, so I was given 1000 shares. Obviously I had to pay the taxes on the differential, so the €3 by 1000, which I did.

    My question is with CGT do I use the 3 out the 6? I’ve technically got them all at 6 as I was taxed on that amount or would it be the 3, which they were bought at?

    Thanks


    You use the value of 6 which is the value you acquired them at when calculating any CGT liability.


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  • Registered Users Posts: 377 ✭✭Saudades


    The ETF tax manual on the Revenue website has been withdrawn due to it 'being updated'.

    Fourth option down - https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-27/index.aspx


  • Registered Users Posts: 690 ✭✭✭danoriordan1402


    Who would be the best broker/method in terms of commissions etc at the moment for doing some day/swing trading and get around PDT. I have been running demo accounts from ICmarkets & others on MT4/5 for a few months with different and no leverages .However I have a small sum aside (5k) that I would like to play around with as a cash account. Any info appreciated, thanks


  • Registered Users Posts: 50 ✭✭LC134


    Hello - Newbie investor here.

    How do you determine a good entry point? I see posters in the share picks thread referring to certain stocks and others occasionally comment that if it goes down to X.XX price they will buy some.

    How is it calculated ? I have a few buy limit orders on stocks but I was wondering how do I select a price with some meaning etc. or know whether market is acceptable trade price?

    Thanks in advance


  • Registered Users Posts: 467 ✭✭Dave1711


    LC134 wrote: »
    Hello - Newbie investor here.

    How do you determine a good entry point? I see posters in the share picks thread referring to certain stocks and others occasionally comment that if it goes down to X.XX price they will buy some.

    How is it calculated ? I have a few buy limit orders on stocks but I was wondering how do I select a price with some meaning etc. or know whether market is acceptable trade price?

    Thanks in advance

    Spend a few days just watching the market its what i did you will see a lot of dips and spikes no matter the stock may get you more familar with hoe much they fluctuate with like liks of apple etc their dips arent going to be anything massive really, most will say if it is a good company and a long term investment(5-10 years) the entry point doesn't matter nearly as much as over that timespan chances are you will be up money

    Pin pointing a good entry point is more important for doing short term investing which is generally called trading or day trading


  • Moderators, Business & Finance Moderators Posts: 9,922 Mod ✭✭✭✭Jim2007


    Dave1711 wrote: »
    most will say if it is a good company and a long term investment(5-10 years) the entry point doesn't matter nearly as much as over that timespan chances are you will be up money

    The entry point always matters, people have no problem identifying good companies but loose out because they are unable to Identify the appropriate price. Read the research rather than listen to the talking heads.


  • Registered Users Posts: 50 ✭✭LC134


    Thanks Dave1711 and Jim 2007.

    I’ve been watching some prices since the pandemic hit in March (I didn’t fund my account til April as it took a while for KYC to clear).

    It’s hard to be confident in pricing when many are so volatile - and I guess as a newbie I don’t want to be emotionally influenced so was hoping there’d be some other way (app or typical traditional calculation method) to support a particular range which you could then consider alongside other factors etc. rather than me plucking a number which is invariably below current price...

    I must check the research materials on the brokerage site and see what tools there are. I was reading up about one on TD Ameritrade.


  • Registered Users Posts: 3,462 ✭✭✭Bob Harris


    Bear the following in mind when deciding on an entry point. Assuming you're going long the price you want is lower than it is now so to get there it has to fall..but once it does will it stop there or continue falling? It might get to where you want it but is it in a downward trend?
    The longer you watch a stock and more you know the better feel you'll get, and that could be months.


  • Registered Users Posts: 23 sorollo


    Bob Harris wrote: »
    Bear the following in mind when deciding on an entry point. Assuming you're going long the price you want is lower than it is now so to get there it has to fall..but once it does will it stop there or continue falling? It might get to where you want it but is it in a downward trend?
    The longer you watch a stock and more you know the better feel you'll get, and that could be months.

    Catching the correct entry point is next to impossible - waiting on the sidelines for the best entry point could lead to the situation that you never enter the market - I think one of the legend experts once said that investors lose more opportunities by trying to time the market (by standing on the sidelines waiting)

    If you are 100% sure you do not need the cash for the next 15 years

    If you are 100% sure the company you wish to invest in has a good business model and cash flow is good and the future outlook is good

    Then invest as soon as the cash is available

    If, however, you are not confident then I would suggest to invest in a broadly diversified all world ETF - here the risk is distributed over many companies and sectors

    Always think long term - at least 15 years

    I hope this helps


  • Registered Users Posts: 23 sorollo


    A lot of investors use arbitrary limits which make no sense

    If Nestle is trading at 101,45 EURO and I believe they are a long term safe investment why should I set a limit order for 100 €

    Does it really matter long term ?

    Why do we invest?

    Because we are 100% convinced that share price will rise over time


  • Registered Users Posts: 23 sorollo


    Say for example I have €50k invested

    I am convinced share prices will rise long term and I plan to stay invested for at least 15 years


    Say I win €100k in the Lotto

    What should I do with the windfall (I do not need this cash and can afford to invest long term)

    I should invest it immediately because I believe long term share prices rise (which is the reason I have already invested €50k)

    If my €50k investment is currently performing negatively I am afraid to invest the €100k windfall and decide to wait on the sidelines

    This attitude doesn’t make sense

    If I am prepared to leave the original €50k invested but am afraid to invest the new €100k because the original €50k is falling in value

    Always invest when cash is available

    Think long term

    Don’t look at your portfolio every day

    Buy and hold

    Stay the course


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  • Registered Users Posts: 9,342 ✭✭✭Shedite27


    I agree with Dave and sorollo, if you're an "investor", the short term entry point doesn't really matter. The best companies provide returns that are so big, missing the absolute lowest entry point by 1%, 2%, or 5% are insignificant.

    If a share costs $50, and grows to $150, are you realy gonna be kicking yourself becuase it was $47 a few days after you bought it?
    Of course not, you've just made $100.
    But if you didn't buy it at $50 because you thought it would fall to $45, well you've just missed out on $100 profit.

    That said, while I think it's imposible to call the "good entry point", I do try to check for "bad entry points" before I buy. For this, have a look at a chart that allows you to see the 21 day moving average (you can add this to charts in Yahoo Finance). That will show you if the company is at a short time surge. I try to avoid companies that have had explosive days, as I've likely missed the big gain. In this case, there's typically a day in the next week or two, where the price will reduce by 5-10%


  • Registered Users Posts: 3,462 ✭✭✭Bob Harris


    Agree with the above 'if youre not in you cant win' approach, Buffett himself preached this.

    I'm not saying wait for months before entering but for stocks, particularly those you trade rather than LT holds, it can take quite a while observing the price behaviour, catalysts, general sector outlook etc to get a good idea of timing.

    I traded Telefonica recently, held for a few weeks. It's a stock I've watched closely for the last 4/5 years in a long term downtrend.
    I got in around 4 , out at close to 5...it's at 3.60 or so now....based on what I knew of the company I felt around 4 was a good entry at that time but not LT as the trend is downward and has been for long time so I felt any reversal would be short lived and so it proved. When it dropped back to 4 I didnt get in again and still wouldn't now as I don't think it's hit bottom and see little reason for any reversal in the short term as a trade and would have little confidence of a LT turnaround either.


  • Moderators, Business & Finance Moderators Posts: 9,922 Mod ✭✭✭✭Jim2007


    sorollo wrote: »
    Say for example I have €50k invested

    I am convinced share prices will rise long term and I plan to stay invested for at least 15 years


    Say I win €100k in the Lotto

    What should I do with the windfall (I do not need this cash and can afford to invest long term)

    I should invest it immediately because I believe long term share prices rise (which is the reason I have already invested €50k)

    If my €50k investment is currently performing negatively I am afraid to invest the €100k windfall and decide to wait on the sidelines

    This attitude doesn’t make sense

    If I am prepared to leave the original €50k invested but am afraid to invest the new €100k because the original €50k is falling in value

    Always invest when cash is available

    Think long term

    Don’t look at your portfolio every day

    Buy and hold

    Stay the course

    You can never be sure that stock is going to rise in value over the long haul. Which is precisely why you should NEVER follow this kind of logic.
    Bob Harris wrote: »
    Agree with the above 'if youre not in you cant win' approach, Buffett himself preached this.

    That is most certainly not what Buffett advocates.


  • Registered Users Posts: 3,462 ✭✭✭Bob Harris


    Jim2007 wrote: »
    You can never be sure that stock is going to rise in value over the long haul. Which is precisely why you should NEVER follow this kind of logic.



    That is most certainly not what Buffett advocates.

    Read the below Jim from a book about Buffett "The Making of an American Capitalist" There a numerous other references from Buffett about this.


    Buffett.jpg


  • Registered Users Posts: 9,342 ✭✭✭Shedite27


    Jim2007 wrote: »
    You can never be sure that stock is going to rise in value over the long haul. Which is precisely why you should NEVER follow this kind of logic.
    Jim, is there any 15 year period of any major index that the red line doesn't go from bottom left to top right?


  • Moderators, Business & Finance Moderators Posts: 9,922 Mod ✭✭✭✭Jim2007


    Shedite27 wrote: »
    Jim, is there any 15 year period of any major index that the red line doesn't go from bottom left to top right?

    When you are investing in an individual company, is of little relevance beyond being a general economic indicator. And when it comes to choose between individual companies it about choosing the one that is most likely to deliver the best return at the lowest risk.

    And very often it’s the unknown, unloved stock that is going to do that for you. But of course that actually requires hours of hard work every week. Unlike say just picking a stock at any price, hoping it will follow the general trend and of course hoping it will not be an Enron, Worldcom, GE etc...


  • Moderators, Business & Finance Moderators Posts: 9,922 Mod ✭✭✭✭Jim2007


    Bob Harris wrote: »
    Read the below Jim from a book about Buffett "The Making of an American Capitalist" There a numerous other references from Buffett about this.

    Start by reading what he and Munger said and did and know that the comments you are relying on are out of context! They relate to an opinion of Ben Graham’s approach. Buy anything that is cheap versus by quality when it is on sale.


  • Registered Users Posts: 9,342 ✭✭✭Shedite27


    Jim2007 wrote: »
    When you are investing in an individual company, is of little relevance beyond being a general economic indicator. And when it comes to choose between individual companies it about choosing the one that is most likely to deliver the best return at the lowest risk.

    And very often it’s the unknown, unloved stock that is going to do that for you. But of course that actually requires hours of hard work every week. Unlike say just picking a stock at any price, hoping it will follow the general trend and of course hoping it will not be an Enron, Worldcom, GE etc...

    Yeah, sorry I read his comment as plural, that he was looking to buy an index for 15 years....
    "I am convinced share prices will rise long term and I plan to stay invested for at least 15 years"


  • Registered Users Posts: 11,394 ✭✭✭✭Timmaay


    If you invested in the ftse at the turn of the century you'd be no real better off now. This is because the ftse is made up of alot more energy and traditional stocks, against the Nasdaq or S&P which have alot more tech giants who have rocketed across the same time.


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  • Registered Users Posts: 1,185 ✭✭✭patsat


    I have been reading up with the idea of investing some money. I'd like to put away maybe €100-200 a fortnight as a long term thing.

    ETFs seems to be a no brainer but the tax implications mean buying shares every couple of weeks will be a nightmare down the line.

    What other strategy should I look into for this type of money/frequency? I have alot more reading to do before I put my money in but would like to be steered on the right direction!


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