Interim Report on my Fantasy Share Portfolio

Written by Demetrius Vouyiouklis

Well, I’ve had my fantasy share portfolio  now for a couple of weeks and with one broker, they show a small profit today (16 September 2011). This profit has ranged from £245.2 (4.88%) to -£16.98 (-0.33%) excluding buying and selling fees.

fantasy portfolio

I have also learned several lessons so far. These include:

– Buy as cheaply as possible, meaning look carefully to purchase quality shares when their price is at a low, look for a broker that provides tight spreads and ensure you pay low commission. Otherwise most of your high-risk profit goes to the broker, meaning it can actually become a loss. In my case I’m currently making a paper profit of £140.47, 2.79% excluding buying and selling fees with ii and a paper loss of £652.87, 11.15% excluding buying and selling fees with TDWaterhouse.

– Buying a mix of shares gives you more of a cushion than holding one or two types of share only, if things go pear shaped. Conversely, if things go well, your profit may not be as high as with fewer types of shares.

– Determine your own attitude to risk and act accordingly. Mine was lower risk, so I chose a basket of blue chip company shares.

I’ve decided to hold my shares for now and not to make any changes to the share types. This would have been different if I was making gains or losses above 10% either overall, or with individual shares. Then I’d either take profits or stop my losses by selling.

So far it’s difficult to decide whether share trading is for me. I will give another report when the situation changes.