new to stocks

kv11x

Hi guys i'm knew at this is there any info i should know before i start? best way to buy shares,the companies to deal with and shouldn't or tips for a newbie? also is there a ideal amount to spend or quantity to buy each time? i know it depends how much cash i have. this time i have around £500 which isn't loads i know but could get a grand to add but don't wanna touch that as only been in premium bonds 2 and half years but so far had back £225 which i think is pretty dam good! tho i do wish the £25 cheque i get did have a few 000's after them but i cant complain as more than id get in interest. on low money i know i will not make hundreds in dividends but every little helps.

cheers

RickyC_IFSWP

If you want to start investing with £500, I would consider simply investing in a Stocks and Shares ISA (tax-free). Pick an index/tracker fund to reduce costs initially and save regularly into it. Basically this would give you better diversification (spread of investments) than your £500 could buy you if you had invested directly. It is also easier to understand and monitor.

Once it builds up to a decent amount, consider bringing in more funds and dipping your toes into direct share investments if you want. Probably a lot of info on these forums for you to digest at a later date.

lozzy1965

You've been lucky with premium bonds. They are ok if you want to give yourself a chance of winning a million, but they are not a good investment.
I would say that £500 is not enough money to start investing in the stock market. your start up costs and dealing costs will be too high a percentage. I wouldn't start with less than £2K pesonally.

lennyaitken

There are many things you should consider when investing. I would like to point out few important points.

1. Never ever lose big money in the stock market.
2. Use daily prices in your stock market investment strategy
3. Have a lot and a lot of patience
4. Don’t invest all your money in this at once

jimjames

lozzy1965 wrote: »

You've been lucky with premium bonds. They are ok if you want to give yourself a chance of winning a million, but they are not a good investment.
I would say that £500 is not enough money to start investing in the stock market. your start up costs and dealing costs will be too high a percentage. I wouldn't start with less than £2K pesonally.

I'm afraid I disagree. £500 is fine to be investing in funds and charges are percent so amount doesn't matter if £50 or £50000 so dealing costs are not an issue.

I agree £500 is too small for individual shares but I think £2000 is as well. For a decently diversified portfolio I think you really need £20,000.

hksoftware

Stocks and shares are practically gambling.
Some people may disagree with that, but unless you've got a LOT of experience investing in stocks and shares, you may as well put your money on the horses.

RickyC_IFSWP

hksoftware wrote: »

Stocks and shares are practically gambling.
Some people may disagree with that, but unless you've got a LOT of experience investing in stocks and shares, you may as well put your money on the horses.

You're entitled to your own opinion, but I feel that that statement is wrong on so many levels.

brendon

hksoftware wrote: »

unless you've got a LOT of experience investing in stocks and shares

How do expect people to gain experience of investing without actually doing it?

jimjames

hksoftware wrote: »

Stocks and shares are practically gambling.
Some people may disagree with that, but unless you've got a LOT of experience investing in stocks and shares, you may as well put your money on the horses.

Totally disagree.

I guess you have no understanding of shares, gambling is unlikely to get your stake back. Pick the right funds or mix of shares and it is extremely unlikely that would be the case.

For someone with small amounts of money funds make more sense and are well diversified so nothing like gambling.

ChopperST

hksoftware wrote: »

Stocks and shares are practically gambling.
Some people may disagree with that, but unless you've got a LOT of experience investing in stocks and shares, you may as well put your money on the horses.

Yep its just like gambling. Look at those historical charts illustrating that exact point over the last 100 years.

Oh...

dealer_wins

lennyaitken wrote: »

There are many things you should consider when investing. I would like to point out few important points.

1. Never ever lose big money in the stock market. Shares can go down as well as up, so this is impossible to achieve and even a diverse fund/tracker can lose 50%+ as seen during the credit crunch crash

2. Use daily prices in your stock market investment strategy Makes no sense as investing in shares is for 3-5 years+

3. Have a lot and a lot of patience Patience for what?

4. Don’t invest all your money in this at once With £500 to invest this is the only option. Or do you suggest investing 10 lots of £50 so that charges wipe out 20% of the capital

With all respect this "advise" is useless.