Why overtrading can kill your returns

Investing has changed radically over the last few years. Electronic trading and instant communication mean shares can be bought and sold in a matter of seconds. But rather than being a good thing, all this could make a serious dent in your profits, says Tom Bulford.

The world of the private investor has changed radically over the last few years. All sorts of things have become possible.

These days I often meet people who have live stock market indices and prices displayed on their iPhone or BlackBerry. With breathless pride they show me some share that was last seen at 10p is now trading at 12p! Maybe at this sudden stroke of good fortune they are tempted to sell, and thanks to more wonders of digital communication they can do so instantly.

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Tom worked as a fund manager in the City of London and in Hong Kong for over 20 years. As a director with Schroder Investment Management International he was responsible for £2 billion of foreign clients' money, and launched what became Argentina's largest mutual fund. Now working from his home in Oxfordshire, Tom Bulford helps private investors with his premium tipping newsletter, Red Hot Biotech Alert.