Bank share investing

cpeters

Can you advise on the best way to invest in bank shares. They are very low rate at the moment, so I am wondering if it's a good time to invest in buying some?? I believe RBOS would be the best?? Please advise on how I go about doing this and if you think it's the right time.

hopefulfooluk

Firstly, if you've not got experience in trading before, think VERY carefully before investing and only invest money which you can afford to lose. These RBS shares look tempting, but remember they are that price for a reason and at a level where there is a very real risk that the bank would be nationalised, in which case they would become worthless.

If you are still happy taking a gamble, sign up for an online execution account with a broker, - I use Hoodless Brennan. That will allow you to actually start trading.

But do not think this is a time where an investment like this cannot fail. There's just as much likelihood of it to crash catastropically - look at Lloyds - peaked at £1.05 yesterday, at one point today they were worth 33p.

marvin

I am not an advisor just a mug punter so take the below with that in mind.
If anyone here can predict the right time I'd like to know what they think will be the six numbers out of the machine tonight too.

Shares in large financials are in normal times seen as a bit of a safe bet but these are not normal times.

I am currently stake building in Lloyds as I believe personally it holds the best growth potential and the least risk out the 4 big banks left in the uk (HSBC, Barclays, RBS and Lloyds).

Although relatively cheap at the moment RBS is the greatest risk based on the likelihood that it will be nationalised by the back door and the shareholders lose all value.

Another deciding factor for me in buying Lloyds is that the Halifax share dealing account I use is offering no charges for shares in Lloyds Banking Group bought between yesterday and the 31st of Jan so I can buy small amounts over several days so as to iron out a bit of the volatility in price and then build the best platform for growth in these shares. (all you pay is the cost of the shares and stamp duty in a free to operate account.)

Without the offer above I would maybe have waited a bit longer, still investing what I intend to invest at some point just trying to pick a point that I thought offered me the best odds on the gamble. Very much like studying the form and picking a horse to win the national sometimes it pays sometimes not you just have to hope you stay ahead.

But what ever you do at the moment its very much a gamble and in financials its a very big gamble so don't use anything you can't afford to lose.

turbobob

Personally I wouldn't buy RBS shares. Is any more bad news is going to come out of this mess? Whether you want to take a gamble is up to you. As long as you are happy knowing you could lose all of your investment if they are suddenly nationalised. Alternatively you could make big gains on the upside if it goes your way...

DARYALS

it may be worthwhile looking at the most stable of the banks and buying shares in them and then maybe doing some day trading, there are plenty of on-line brokers which offer execution only accounts. Alternatively you could invest in banks and hold some of the stock long and then sell for profit, or you could simply hold the stock and hope that it climbs. I use a mixture of day trading and partial long holding of shares. The main thing is only invest what you think you can loose, any if you make a profit, get out whilst the going is good!