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Hello Crazy Gang,
Like a lot of careful Crazies I have the bulk of my serious dough invested in blue chips. Of course, Footsie giants like these are not guaranteed. Think of Northern Rock (NRK), Abbey National, Energis, British Energy (BGY) and British Aerospace (BA.), for example. All have been in a spot of bother at one time or another.
And even the Royal Bank of Scotland (RBS) and Barclays (BARC) are navigating through heavy waters at the moment.
But we usually feel safer with blue chip shares, don't we.
Now one of the best strategies I can think of for blue chips share is one I never carry out. Why? Cos I'm rather scared, that's why.
This strategy is to sell my entire holding in a share which has done very well over the last week or so. Say, BG (BG.) for instance. Then the idea is to put all this released money into a share which has not done so well recently, say RBS or Barclays.
This is because profit-taking is due for BG. And a recovery of some degree or other might well happen for RBS and Barclays. If I had carried out this 'sell-all, buy all' strategy at the beginning of this week, I would have been quids in. But I did not - and I'm not.
I did not carry out this seemingly sensible ploy because it would have been a very dramatic action. A mistake and I would have been in trouble. The spread on BG shares is usually now't at all. But there is a nasty little tax on big purchases - and that's stamp duty.
If I sold all my BG, got it wrong and had to buy 'em all back, it would have cost me a lot in tax, if not in the spread or the low ShareCrazy commission. So I didn't. And I wish I had now. But then Crazyland is full of regrets - and it's best not to let 'em bother you. Rockin' on!
To find out more about Malcolm CLICK HERE
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