As I wrote last week in “Cleaning up the Amateur Investor Portfolio“, I’ve decided to tidy up the Amateur Investor portfolio.
While I said that this was because the A.I. portfolio of over 200 holdings was proving to be too difficult to keep a close eye on, another consideration is that the 12 month anniversary of subscribing to The Share Centre’s unlimited share dealing option is approaching (The deed is done. I’m now a “Premium Trader”!)
This trading option costs £3000 per annum (£2500 + VAT) and allows frequent traders to trade as often as they like without additional trading fees. So anyone trading at least once a day will probably be better off on the Premium Trading option.
I’m pretty sure I’ve traded enough to make the Premium Trading option pay for itself since 1st August 2011, but having built an extensive portfolio since then I ask myself will I be renewing this option again in a little over 6 weeks time at a cost of another £3000?
That’s a big chunk of money to find, or a lot of shares to sell.
So my current thinking is to sell the majority of my “small” holdings with The Share Centre and move the cash into the Amateur Investor funds ISA with Fidelity.
I would then have a much smaller portfolio of core holdings with The Share Centre (mainly “income stocks”) which would be held for their dividend yield. The result being that I would not be trading anywhere near as much as I have been of late.
This would also mean that I would not have to sell £3000 worth of shares to pay for the 2012/13 Premium Trading option, or find the £3000 from elsewhere.
So with all of this in mind, I have today sold my holdings in iShares FTSE 100 ETF (ISF) and Cranswick (CWK) – held within the general shares portfolio.
iShares FTSE 100 ETF
These were bought at an average price of 531.35p and sold today for 547.03p, a profit of 9.25%
Just one block of Cranswick shares were bought for 645p. These were sold today for 792p – a profit of 22.8%