£1000 to spend on shares

welsh-dragon_3

Am thinking of investing £1000 on some shares
ive got £1000 stashed away and need to turn it into £2500, is shares the way forward,
if so whats to best way to go about it, as ive never bought and sold shares before,
but i remember a friend of mine years ago use to make about £500 aweek from buying and selling shares,
ive lost touch with him now to ask him for advice.
would be grateful if someone could help me out.
many thanks

Chadsman

to make £500 a week from share dealing you need a lot of money, a lot of luck, to be a professional trader or some combination thereof (preferably all three). To expect to turn £1000 into £2500 with any degree of certainty is IMHO unrealistic.

turbobob

Could you afford to see that £1000 turn into £500 or even lose it all?

welsh-dragon_3

I said that to my friend before when he was trading (this was about 9 years ago) and he showed me the inputs into his bank account and he was making a good living from it,(he now lives in spain)
dont get me wrong he did lose money but made more then lost,
and he was no trader just doing it from home...maybe times have changed.
maybe £1000 worth of scratch cards it is haha..(joking)

JoeCrystal

Well, if you want to turn £1000 into £2500 certainly, then put it in bank account paying 4% interest and wait for next twenty five years. At that point, the value of £2500 would be very eroded.

Beside, the value of shares can fall as well up. High Potential Return does in hand with High Risk.

welsh-dragon_3

turbobob wrote: »

Could you afford to see that £1000 turn into £500 or even lose it all?

ive been sitting on this £1000 for about 2 and half years, so i could live with out it , if it all went pear shaped..

JoeCrystal

Get the Financial Times with stock lists and four darts. Throw each one at the list and choose the company that beneath the dart.

Likewise, you can do the same with letters so you can choose company through their ticker code.

Or do the research on lot of different companies and decide after research.

No one got crystal ball sadly.

Asprilla

Hey Welsh-Dragon. I've been dabbling in shares for the last 2 years and have experienced the good and bad. I once was £24k in profit (on a £2k investment), then lost it all, plus £5k more, because I used dealer credit. I'm not an expert (I'm sure there are many more knowledgeable people on here), but I have a few tips on how to decide your dealing type:

Firstly, you have your day traders - those who pump an amount into a share that's on the rise, then take little profit - which isn't bad, as you could easily make £50 a day and post a pretty profit over time. The downside is the costs (time & money). You need to be able to watch them all day, invest in live trading platforms, and will pay per trade (although some offer less fees the more you trade). Also, the type of stocks that usually attract day traders are those who have very high share prices (e.g. GlaxoSmithKline @ 1206.50p a share, move sharply either way almost every day).

Then you have Mid-Term Traders. They buy in at a time when a company is about to release news (good or bad), or show signs of future movement, and affect the share price either way. The profits on these type of trades is usually good, as you'd buy in at a decent low/mid price, and hopefully it goes up on the good news. Of course, if it's bad news, expect the price to bomb, as everyone will get out and no-one will be buying the shares. Everyday companies like RBS Group (45.42p) & DSG International (24.87p) who rely on news for a rise are ones to look at.

Finally, you have Long-Term Traders (like myself). You find a newly entered company to the stock exchange who have a price in the region of 1p or less. They usually post losses in their first year (as they haven't got anything to make a profit on yet), but post regular news on how they're doing and what resources they have (which should make them money eventually). The upside of this type of trading is the profits. £1k will buy you loads of shares, and if that 1p share price hits 10p, well, I don't need to explain. The downside is the time it takes. Some companies take YEARS to post profitable results, but at least the SP should remain balanced, and if you wanted to get out you'd only lose your costs. Oil, Gold & Carbon Emissions are the fields for this type of trading.

Always put effort into researching the shares you want to buy. Some have very bad pasts which are trying to be hidden, and will basically take your money.

If you don't need the money, the do it, you've got nothing to lose! Share dealing is quite exciting to me, and I'd rather do it than gambling any day!

welsh-dragon_3

thanks, i work in a big company, and know of some bad news that will be round the corner, and i know of another big contract they are going for, so i was hoping to buy some shares when the bad news is out
then take a risk that they land the new contract and the shares shoot up, they land most contracts as they really push to under cut for the contact then lay people off to cut costs..
thanks again for the explanation.
cheers

chris_m

Ooh - potential insider dealing, Be careful about that.

Coeus

Asprilla wrote: »

Hey Welsh-Dragon. I've been dabbling in shares for the last 2 years and have experienced the good and bad. I once was £24k in profit (on a £2k investment), then lost it all, plus £5k more, because I used dealer credit. I'm not an expert (I'm sure there are many more knowledgeable people on here), but I have a few tips on how to decide your dealing type:

Firstly, you have your day traders - those who pump an amount into a share that's on the rise, then take little profit - which isn't bad, as you could easily make £50 a day and post a pretty profit over time. The downside is the costs (time & money). You need to be able to watch them all day, invest in live trading platforms, and will pay per trade (although some offer less fees the more you trade). Also, the type of stocks that usually attract day traders are those who have very high share prices (e.g. GlaxoSmithKline @ 1206.50p a share, move sharply either way almost every day).

Then you have Mid-Term Traders. They buy in at a time when a company is about to release news (good or bad), or show signs of future movement, and affect the share price either way. The profits on these type of trades is usually good, as you'd buy in at a decent low/mid price, and hopefully it goes up on the good news. Of course, if it's bad news, expect the price to bomb, as everyone will get out and no-one will be buying the shares. Everyday companies like RBS Group (45.42p) & DSG International (24.87p) who rely on news for a rise are ones to look at.

Finally, you have Long-Term Traders (like myself). You find a newly entered company to the stock exchange who have a price in the region of 1p or less. They usually post losses in their first year (as they haven't got anything to make a profit on yet), but post regular news on how they're doing and what resources they have (which should make them money eventually). The upside of this type of trading is the profits. £1k will buy you loads of shares, and if that 1p share price hits 10p, well, I don't need to explain. The downside is the time it takes. Some companies take YEARS to post profitable results, but at least the SP should remain balanced, and if you wanted to get out you'd only lose your costs. Oil, Gold & Carbon Emissions are the fields for this type of trading.

Always put effort into researching the shares you want to buy. Some have very bad pasts which are trying to be hidden, and will basically take your money.

If you don't need the money, the do it, you've got nothing to lose! Share dealing is quite exciting to me, and I'd rather do it than gambling any day!

VERY informative! However I'm curious as to what processes you use to identify your long-term holds and what platform you use to identify potential IPOs if your willing to divulge?