Picking Shares in isolation is usually a big, and expensive, mistake. ‘Buy and hold’ will only work IF – 1. you are lucky and choose the right growth stocks in the first place and 2. you are lucky to get in at the start of a long ‘bull’ stock market run.
So you are immediately faced with two problems when thinking how best to invest your SIPP contributions – is the stock market going to continue upwards from here and how can good growth stocks be identified?
Using a pin, the newspapers, financial magazines, a stock broker or a ‘hot tip’ from a friend can be a waste of time and of your money: Royal Bank of Scotland (RBS) used to be a SIPP favourite and is a classic example of all that is wrong with the ‘buy and hold’ approach.
There wouldn’t be much left of your pension pot if 2 years ago you had selected a portfolio of shares based on leading British companies in the FTSE 100 index which included say, Royal Bank of Scotland (or any Bank shares for that matter) – down from 700p to 60p, British Airways (down from 580p to 240p), British Land (down from 1730p to 530p) BT Group (down from 330p to 130p), Xstrata (down from 4400p to 1000p), Sainsburys (down from 600p to 300p) and so on; there are just so many of them!
That is no way to invest for the future. Investing in unit trusts or insurance funds can be even more dangerous and costly to your fund; even worse, they can put a moratorium on withdrawals – leaving you to try living off no income!
So, how can you identify good growth stocks and how can you avoid being caught in the next stock market crash?
The answer lies with ShareHunter. The technical analysis techniques used by ShareHunter identifies potentially profitable share trades – both for the short term and for the long term (depending how investment-active you want to be). They are based on sound economic ‘supply and demand’ principles and on proven trend-stage identification.
The result is that your SIPP can be kept populated with super growth shares (top FTSE 350 shares – no ‘penny shares’) and structured so that you should not ever have to suffer the sort of disastrous collapse in share prices as suffered by so many over the last two years.
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