£1000 to spend on shares

alesupper

Hi Asprilla (or anyone else)

Can you tell me how to find "a newly entered company to the stock exchange" please?

Plus - I've been thinking about buying some RBS shares whilst they are so low and wondered what people thought of that as an investment/gamble?

Cheers

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!