[pcabc]

Dear group,

I hope this has not been covered before. How do you actually buy shares? The book covers setting buy-stop orders on a good until cancelled basis to automatically buy shares on a breakout. However, the online service I use does not offer this (I'm in the UK). I'm not sure if this an often offered facility for mainstream services.

Even if it were offered I can see some issues - as you don't know exactly when and if a breakout will occur you will be wanting to set up multiple buy stops in place. However, multiple buy stops add some danger - you may end up with more commitments than you have been expecting.

Personally I'm watching stocks like a hawk and buying within a day or two of a breakout. However, it seems that a lot of stocks jump suddenly and I've found myself buying on a peak before a pullback. I'm sure in time that the majority of cases this issue will be moot in the long-term but it can be somewhat alarming to find myself buying a share only to make a loss at least for the short term.

I suppose one way around the buy-stop issue would be to set up a CFD account as they seem to offer more stop features. I presume that if you are careful with the stops then that does limit the risks - and I note that at least one provider limits liability to just the value of the account by closing the position so you can never owe them money. However, I a bit wary of the CFD route at present - not for widows & orphans etc. It also seems to me that CFD accounts are aimed at day traders - not what we are doing here. I suspect another strategy would be to keep a bit of cash in the standard share account - buy on the CFD and then if is a keeper simultaneously sell on the CFD and buy on the standard account - having the same effect as transferring the shares.

Any thoughts?

Pete