Buying Shares for the first time, advice appriciated.

Options
ps3home
ps3home Posts: 107 Forumite
in Savings & investments
Hi,
I've decided that I want to explore the stock market and try to build a portfolio of shares. I'm starting out with £400. I've already purchased £120 worth of Ladbrokes shares. I'm thinking to spend the rest on LLOYDs shares? Not sure if there's any advice for me here with my budget.

Im using Halifax which has a trading fee of £12.50 when buying or selling.

Thanks

Comments

  • Drp8713
    Drp8713 Posts: 902 Forumite
    First Anniversary First Post
    Options
    Whilst I wouldn't want to put you off picking your own shares, you might want to invest in funds (Unit Trusts or OEICS) until such time as you have £500-1000 to spend per share.


    At the moment, you have paid a 10% charge to buy your Ladbrokes shares. If you are buying shares as a hobby, then that's fine, but if you intend to make money then either funds which are free to buy from most places or regular share purchases from £1.50 a month might work for you.
  • jimjames
    jimjames Posts: 17,668 Forumite
    Photogenic Name Dropper First Anniversary First Post
    Options
    ps3home wrote: »
    Hi,
    I've decided that I want to explore the stock market and try to build a portfolio of shares. I'm starting out with £400. I've already purchased £120 worth of Ladbrokes shares. I'm thinking to spend the rest on LLOYDs shares? Not sure if there's any advice for me here with my budget.

    Im using Halifax which has a trading fee of £12.50 when buying or selling.

    Thanks

    Advice?

    Don't do it. The numbers you are looking at are far too small to make it viable to buy and sell shares. For those sorts of amounts then funds are a far more suitable option.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • ps3home
    ps3home Posts: 107 Forumite
    Options
    Thanks for you replies. So you think I should put £500-1000 in Lloyds if I decide to buy them?
    What type of funds do you think would be best within my budget, I guess around £50 per month?

    Thanks
  • doe808
    doe808 Posts: 452 Forumite
    Photogenic Name Dropper First Post First Anniversary
    Options
    Use Halifax Sharebuilder - UK Shares for £2 per trade. Can only invest on certain days though. Echo though what is said about - minimum I work with is £1000. Anything below that it too small.
    Total - £340.00

    wins : £7.50 Virgin Vouchers, Nikon Coolpixs S550 x 2, I-Tunes Vouchers, £5 Esprit Voucher, Big Snap 2 (x2), Alaska Seafood book
  • ps3home
    ps3home Posts: 107 Forumite
    edited 17 May 2015 at 11:32PM
    Options
    I might save up and put £800-1000 in to LLoyds when the goverment offer them soon. Think this is a good plan? I think I'm using share builder, maybe I was mistaken about the fee. I ordered the Ladbrokes ones yesturday so Im guessing they'll process it tomorrow? I guess it's £2 to buy and £12.50 to sell?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Name Dropper Photogenic First Anniversary First Post
    Options
    Initially gain exposure through a general investment trust. Once your portfolio is of a reasonable size then build a portfolio of individual stocks.
  • DrSyn
    DrSyn Posts: 889 Forumite
    First Anniversary First Post
    Options
    Want advice read articals on monevator.com

    Remembers all charges and taxes matter!

    For such small amounts suggest as you are just starting use a simple FTSE 100 ETF such as those run by iShares or or Vanguard. Put the money inside a Stocks & Shares ISA.
  • C_Mababejive
    C_Mababejive Posts: 11,657 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    My advice is that the sums you are talking about are too low. Most small investors trade at least a couple of thousand on each deal and considering the charges against your investment, you are likely to loose money. Best to get out whilst you can and put the money in a low cost tracker or similar.

    Dont believe the "wolf of wall st/Gordon gekko" hype.
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.7K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 449.9K Spending & Discounts
  • 235.8K Work, Benefits & Business
  • 608.8K Mortgages, Homes & Bills
  • 173.3K Life & Family
  • 248.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards