Share Investing - Warning

Jonbvn

As pointed out by dunstonh, S&S are not a one size fits all risk. The key to investing is managing the risks. Diversification, long term holding, and research are key. There is certainly no basis for making sweeping statements that no one but "experts" should consider investing.

cinderfella

Jonbvn wrote: »

As pointed out by dunstonh, S&S are not a one size fits all risk. The key to investing is managing the risks. Diversification, long term holding, and research are key. There is certainly no basis for making sweeping statements that no one but "experts" should consider investing.

To become an 'expert' does take a fair bit of time & effort together with acquiring a 'learning curve'.
So better to become an 'expert' (someone with knowledge) than sticking a pin in the financial press or investing on 'a tip'.
In other words you are master of your own destiny (freewill). DYOR as usual.

TheMatrix_2

I have to say I disagree, you should really have a mx of safety and risk, short, medium and long term investment and savings. Your safe savings and investments would be your cash isa's and your bonds e.g. NS&I certificates, then once you have a safety net put some into shares either through a stocks and shares isa or through a sharesave at work. Then there are your more riskier speculative forms of investing such as spreadbetting shares and foreign exchange markets.

Just don't put all your eggs in one basket, is what I say - have the right mix.

cinderfella

TheMatrix wrote: »

I have to say I disagree, you should really have a mx of safety and risk, short, medium and long term investment and savings. Your safe savings and investments would be your cash isa's and your bonds e.g. NS&I certificates, then once you have a safety net put some into shares either through a stocks and shares isa or through a sharesave at work. Then there are your more riskier speculative forms of investing such as spreadbetting shares and foreign exchange markets.

Just don't put all your eggs in one basket, is what I say - have the right mix.

There is nothing wrong with what you are saying. Spread the risks and choose the risk level that you feel comfortable with.
The last person that I heard say 'don't put all your eggs in one basket' was a Turkish solicitor who had just nicked £1200 out of my account, but that's another story.
As for spreadbetting & FX speculation. I have to plead ignorance as it sounds very risky. Someone said it was very easy to get 'wiped out' in those markets - especially for the novice even if you do research the markets etc.

TheMatrix_2

cinderfella wrote: »

As for spreadbetting & FX speculation. I have to plead ignorance as it sounds very risky. Someone said it was very easy to get 'wiped out' in those markets - especially for the novice even if you do research the markets etc.

Yes it is very risky, that's why it is speculative and you can lose the lot, that's why no one should put all their eggs in this basket.