Practicing share investing.....

Blah99

willing2learn wrote: »

so far i have picked Premier Foods.....for no other reason than that i know someone who works for the company, so i have heard of them. The others i've heard of are Tate & Lyle....no other reasons to pick.

You've fallen into classic trap #43 of new share investors - you don't know what companies are decent, or what companies own what brands, so you've gone for the companies you know. The easiest and quickest way to expand your knowledge of companies is to buy the Investor's Chronicle magazine. For £4 it will immediately introduce you to loads of potential opportunities you can then research.

That said, what you're doing is good learning anyway. Pick some companies you've heard of, do your research and then come back and tell us whether you'd buy them or not. Give us your reasons and I'm sure people here will be happy to discuss. Some will probably argue and complain. Just ignore them, they're wrong and I'm always right

Blah99

willing2learn wrote: »

wondering what all the indicators are for! I know about stochastic indicators because i've read about them......would anyone recommend from the list on digital look which indicators to go for ........for a complete novice....lol

It depends. I generally use EMA (Exponential Moving Average) set at 7, 14 and 21 days on the chart itself. I use 14 and 21 day Relative Strength Indicators to give me an indication over oversold/overbought.

I then use MACD and 14 day slow stochastics for an indication of buy/sell points. For short term trades (mainly spread bets) I also look at ADX.

That said, all of these are utterly useless if you don't know how to interpret them, so I thoroughly recommend you read "Charting" by Alastair Blair.

willing2learn_3

okay i've now found the help page which explains all these indicators......so i will shut up and read

willing2learn_3

Blah99

THANKS SO MUCH for interacting with me! LOL! I really appreciate it. I will get the investor's chronicle now, as i see why you recommended it.

willing2learn_3

Blah99 wrote: »

That said, all of these are utterly useless if you don't know how to interpret them, so I thoroughly recommend you read "Charting" by Alastair Blair.

Okay i'm onto it. As i'm a money saver i will probably see if the library will supply it and then it will take weeks for me to get it! LOL. Perhaps i will buy it.

Meanwhile i have a focus for the next week or so - so thanks again!

Blah99

willing2learn wrote: »

Okay i'm onto it. As i'm a money saver i will probably see if the library will supply it and then it will take weeks for me to get it! LOL. Perhaps i will buy it.

Meanwhile i have a focus for the next week or so - so thanks again!

No problem. Remember, money spent on investment books is money well invested in your financial education. Especially with a book like "Charting" you'll find yourself going back to it repeatedly to check things etc, so I thoroughly recommend owning a copy instead of renting one.

willing2learn_3

Thanks Blah! I will definitely be checking out the book. I got a copy of the Investor's Chronicle the other day - so getting some good habits in place.

Quick question. Does anyone know of a good free site where i can practice trade using the various indicators? Investopaedia seems too simplistic with it's charts unless i am missing a function somewhere....

Otherwise i guess Digital Look is good....seem to get a number of indicators there.

Blah99

What do you mean by practicing using various indicators? Are you looking for some system that will automatically (example) trade for you based on indicators, or...?

If you just want to paper/virtual trade pretty much every investment site provides an option to manage a portfolio. For example Interactive Investor can link a portfolio to your share dealing account, or you can create your own portfolio and enter your fictional trades as you make the decisions. Same is true for ADVFN etc. Some ask you to add your own fees etc in so just remember to subtract £12 and 0.5% of every buy for fees and stamp, and subtract £12 of every sell for fees.

willing2learn_3

Hi Blah99

i mean't indicators like the stochastic indicators, RSI, MACD......as what i have learned so far is that these help with decisions whether to go in or out...

I guess Digital Look is pretty good though. It's the most detailed i've come across. As i say Investopaedia seems to just show a simple line chart with some volume underneath, not a lot of information....(unless i am missing something).

I'll take a look at the other two sites you've mentioned....thanks!

willing2learn_3

Blah99 wrote: »

Are you looking for some system that will automatically (example) trade for you based on indicators, or...?

No, i didn't know that could happen......LOL I know nothing!

Incidentally, I am now also wondering if there are any systems to help people pick stocks, ie if you feed in certain criteria would they bring up stocks for you.....?

By the way thanks for any responses :-)