share tips

shazkhan111

I have recently started working and for the first time have some cash i can play with on the stock market.

I was thinking about subscribing to a share tipping newsletter like
https://www.t1ps.com.

does anyone have any experience of any of these newsletters or is it better to read the sunday papers etc?

F_T_Buyer

Checkout https://www.moneyweek.com

They have a free money morning (every workday) email.

creoj

Vodafone and BP look good buys at the minute. RBS could be a good buy for the long term although they are perhaps a bit pricy.

cheerfulcat

shazkhan, there are various reasons why share-tipping newsletters are not a good idea. Here are a few - 1. You are only one of many receiving the same tip; if the company tipped is a smallish one, the actions of those who received the tip will affect the share price. 2. Buying blind on tips means that you will never learn to value companies for yourself. 3. You can never know the motives of the tipster - they have been known to tip shares for reasons of their own ( not, I hasten to add, t1ps.com which is a perfectly sound and legitimate outfit ). 4. If the tipster is such a hotshot investor, why does he not spend his time investing? Why does he sell tips?

shazkhan111

cheerfulcat wrote:

shazkhan, there are various reasons why share-tipping newsletters are not a good idea. Here are a few - 1. You are only one of many receiving the same tip; if the company tipped is a smallish one, the actions of those who received the tip will affect the share price. 2. Buying blind on tips means that you will never learn to value companies for yourself. 3. You can never know the motives of the tipster - they have been known to tip shares for reasons of their own ( not, I hasten to add, t1ps.com which is a perfectly sound and legitimate outfit ). 4. If the tipster is such a hotshot investor, why does he not spend his time investing? Why does he sell tips?

just a thought..... the site promises average returns of 26%, if this is true then why do we need to worry why they are tipping ..... i just want to know whether these claims are true...(not meaning to sound rude).

cheerfulcat

the site promises average returns of 26%, if this is true then why do we need to worry why they are tipping

You have no way of knowing whether it's true or not. I would say that chances are it's unlikely that someone following their tips had an average return of 26%.

In any case by clever use of prices it is possible for a tipster to claim great successes even though those who got the tips could never have got those returns, due to the movement in share prices resulting from the tip. I have actually seen this happen on quite a few occasions; a popular tipster can cause fairly large swings in illiquid shares. And this is why you have to be aware that a tipster's motive may not be benign; he may own shares in the company he is tipping, and may be attempting to raise the price so that he can sell at a nice profit. Remember the City Slickers affair? It's not at all uncommon.

shazkhan111

ok what does a novice like me use as an info source to dabble in the stock market, without using the normal blue chip stuff

DocProc

Have a read at this stuff first:-

http://en.wikipedia.org/wiki/Pump_and_dump

And remember the caveat, "If it looks too good to be true then it most probably is!"

shazkhan111

F_T_Buyer wrote:

Checkout https://www.moneyweek.com

They have a free money morning (every workday) email.

what is the content of this email....last thing i want is rubbish in my inbox....how reliable is the info?

EdInvestor

Basic principle for someone starting out buying shares: Size matters.

Tipsheets almost always concentrate on small and even micro-cap shares which are much more likely to go t1ps up than Lloyds Bank, say, or BT.

Start with the biggies and observe what the share price does so you can learn how Mr Market behaves, and accumulate money ( such as dividends) all the while.

Later on, when you get a bit more experience you can try the hairier stuff with a reasonable chance of success.

CopperPlate_2

Get some decent professional financial advice before investing in the stock market. Penny shares and tips are okay, IMO, if you are willing to spend a fixed amount and risk losing it - a bit of fun you might say?

If it's long term investments or planning you are looking at, then get proper advice. Unless you are an expert yourself, then I wouldn't want to risk it all going pear shaped in ten or fifteen years time (not that professionals are crystal ball gazers either I hasten to add).

I think the tendency is to concentrate on companies you like for one reason or another and perhaps exclude those you don't like, again for one reason or another, when the actual stock picking should be completely emotion free and based on sound financial performance and future profitability/performance. Just my opinion.

With regard to the tips - tips get published in the press (how long before printing were these tips selected? How many people in the publishing organisation has seen these tips before they're published? ) and the readership which might amount to millions or hundreds of thousands, read them. A stampede to buy could push the share price up and artificially inflate it when the fundamentals and the actual business itself doesn't warrant it: a bubble, which eventually bursts. Pessimist? Oh, yes!

Good luck!