Shares

killah

Hi

I am looking into buying some shares not a big amount just something to start me off in the trading world as I am only 19 so I was wondering if it worth it cause I would only really make small investments and any suggestions on which to buy and benefits for buying.



Thanks

dancingfairy

Hi. I too was in your position. I tried buying Tesco's bought too high, and paid too much commision, pizzaexpress,Abbey- fell and fell and fell and got taken over and other's I can't remember now, I think I had SCS upholstery at one time, and the company behind Iceland etc. You really need to invest at least £500 in an individual company, also have a stop loss and get out if you start losing money. I had a great time with my shares but in the end I lost money on all of them. I now believe that I will do better with unit trusts and in an ISA as well. I also thought I would make money with the shares- big mistake. You really do need to leave them for at least 5 years. Even if you are convnced they are great shares it doesn't always work out. I think it is very hard to make money in shares and you need a sound strategy- rather than following reccomendations, pot luck, etc. This is why I am thinking of unit trusts as I can spread my risk around and not have all my eggs in one basket. I think you can invest from around £50 a month as well. I know I won't get massive gains but hopefully it will take some of the risk out of it and if some do badly they should cancel out with the good ones if that makes sense. I am not a financial adviser or expert in anyway I just love finance and have heard like everyone else that shares are nearly always best over the long term- it's just how to get the exposure without losing too much. Anyway I hope this gives you a few pointers, but don't take my advice do some research and see what other people think as well. Would love to know how you get on.

killah

dancingfairy wrote: »

Hi. I too was in your position. I tried buying Tesco's bought too high, and paid too much commision, pizzaexpress,Abbey- fell and fell and fell and got taken over and other's I can't remember now, I think I had SCS upholstery at one time, and the company behind Iceland etc. You really need to invest at least £500 in an individual company, also have a stop loss and get out if you start losing money. I had a great time with my shares but in the end I lost money on all of them. I now believe that I will do better with unit trusts and in an ISA as well. I also thought I would make money with the shares- big mistake. You really do need to leave them for at least 5 years. Even if you are convnced they are great shares it doesn't always work out. I think it is very hard to make money in shares and you need a sound strategy- rather than following reccomendations, pot luck, etc. This is why I am thinking of unit trusts as I can spread my risk around and not have all my eggs in one basket. I think you can invest from around £50 a month as well. I know I won't get massive gains but hopefully it will take some of the risk out of it and if some do badly they should cancel out with the good ones if that makes sense. I am not a financial adviser or expert in anyway I just love finance and have heard like everyone else that shares are nearly always best over the long term- it's just how to get the exposure without losing too much. Anyway I hope this gives you a few pointers, but don't take my advice do some research and see what other people think as well. Would love to know how you get on.

Thanks for replying to my question and really get what you’re saying as I really don’t know much about shares and how they work so I don’t think it would be wise. So say I put £50.00 a month into something that I want to make a profit from whatever it is either buying something or just saving what’s the best option for a teenager.

DireEmblem

Hi, I would reccomend investing in a Mini Stocks and shares ISA. That way you have an experienced fund manager choosing your investments for you, and you collectively share the gains/losses.

If you have a look on sites such as Fidelity or MoneyExtra, you can put in your take on risk, and it can help guide you into which kind of Unit Trusts etc etc.

Some trusts even give you a set monthly/SemiAnnual/Annual Income return on your investments.

Please note that past performance on any fund, is no guarantee or reflection of future profits, as noone can accurately predict the future, although as history has shown if you are investing in this type of instrument, if you make a loss, it is generally recovered in a few years.

thewayitis_2

Firstly take a look at the money you are investing, and ask yourself if you can afford to lose it?

Next, take a look at that same money, and ask yourself if you are happy having it tied up in stocks that may not turn a profit for several years?

If both of these are true, then you are part of the way to making money.

Most people go into share dealing thinking of short term big profits, but when the shares go down end up becoming longterm investors! Its rare to make profit in share dealing in the shortterm, unless you are very lucky or you do it for a living. Day trading (that is buying and selling on small daily price fluctuations) should be avoided at all costs.

You can pick your own shares or you can let a fund manager do it for you. Managed funds are a lot safer as the managers are supposed to be experts at this, but there are good funds and bad funds. Make sure you research the funds very carefully - there are many online fund comparison sites - and pick ones with a good history that generally beat their own market. The fund charges are generally a little more expensive, but the gains will be a lot more with any luck. You can pay in a monthly amount to spread risk, or you can drop in a lump sum then forget about it.

Buying shares directly is much much riskier, but the opportunities for high return are there. Dont ever listen to anyones advice on WHAT to buy, especially on bulletin boards. My advice to a beginner on picking shares is to start with what you know - what products do you buy or services do you use that you are pleased with? What companies have really impressed you with their service and to whom you feel some brand loyalty? Then you need to research those companies - learn how to interpret a financial report, where to find trading news etc. Only then will you form a clear picture of where you think the company is going and whether you want to risk investing your money. Once you've formed you OWN opinions, you can take a look at bulletin boards to get alternate views on the stock. Beware rampers (people who own the share and talk the price up to dump it and make a fast profit), shorters (people who have promised to provide the shares to someone else at a future date, and are talking the price down to get it cheaper and make a bigger cut) and take everyone else's opinions with a huge pinch of salt.

ISAs are tax-free wrappers. Basically you can buy through them (managed funds, shares, save cash in high interest accounts etc) to a certain limit each year, and whatever profit is made within that wrapper is tax free. Without the wrapper any savings account interest is taxed under normal income tax rates, and any proceeds from share ownership and sale are caught under Capital Gains Tax. Basically - if you haven't used your ISA allowance for the year, then use it first before you invest/save outside the ISA.

Hope this helps!

wlfc1

killah wrote: »

Hi

I am looking into buying some shares not a big amount just something to start me off in the trading world as I am only 19 so I was wondering if it worth it cause I would only really make small investments and any suggestions on which to buy and benefits for buying.



Thanks

I am not a qualified Financial Advisor and therefore not qualified to give advice on this matter, I can tell you that I have bought Lloyds share and happy to do so, the compant is a very secure ftse 100 company, well established and pays a very good dividend.

debbie42

thewayitis wrote: »

Most people go into share dealing thinking of short term big profits, but when the shares go down end up becoming longterm investors!

If a share drops short term, then some panic, sell and make a loss, too.

sambessey

1. Unit trusts are usually a poorer performer than an index tracker- personally I would avoid unit trusts. I personally hold about 25% of my wealth in various index trackers and the rest in self picked shares.

2. Shares are not as bad and risky as everyone thinks- there are lots of hot prospects out there but you need to invest a lot of time in finding them! I have made double digit percentage profit in less than a year of share dealing on my portfolio- I hold mainly AIM stocks, and a few FTSE- listed stock in an ISA wrapper.
Shares are not risky- uneducated people throwing money at poorly researched stock is.

By all means do it, but do a LOT of research first, read a few books, and play around with a fantasy portfolio first.

CLAPTON

As you are 19 and have only modest amount of money i would strongly suggest you just get into a saving habit and simply put it into a high interest savings a/c.
you could look at a regular saving a/c like Yorkshire that pays 7% before tax.

Then once you have saved a bit you can consider what to do with the money but using it to avoid debt in the future (say if you need to buy a car) or to put towards a mortgage deposit make good sense.

If you want to learn about stock and shares etc the sign up to the numerous sites that allow you to set up a fantasy portfolio and see how you get on. with these you can track the performance online. also starting reading some of the financial sites e.g. www.fool.co.uk have quite a lot of investing forums.

Moorepart

killah wrote: »

Hi

I am looking into buying some shares not a big amount just something to start me off in the trading world as I am only 19 so I was wondering if it worth it cause I would only really make small investments and any suggestions on which to buy and benefits for buying.



Thanks

You should first consider what level of risk you are looking to take. The higher the risk, the higher the potential returns. It's worth bearing in mind that the current economic climate is looking uncertain according to some analysts.

You could perhaps look at fundsnetwork.co.uk; click on the planning tab and click on portfolio planner. I think you will need to register, but this doesn't cost anything. It will then ask you what your objectives are and help you assess your attitude to risk. It may take a bit of time, but it's worth a look.

Gook Luck:rolleyes:

thewayitis_2

Sembessy.

I have to disagree with your 'Shares are not risky' statement!

You only have to look at the dot com crash and the recent online gambling massacre to see that it takes a hell of a lot more than thoroughly reading round stocks to understand what drives the market.

Well done if you havent been burnt yet, especially if you are dabbling on the AIM - wish I could say the same. All investors get a little singed at some point though.

Good suggestion on the fantasy portfolio thing.