Northern Rock - Shares [Merged Threads]

Aegis

student200777 wrote: »

what is the basic rule of buying shares? it is buy low sell high which i am doing.

That's not so much the rule of buying shares as a rule about day- or short-term-trading. The usual advice for investing is instead "buy and hold". This means that your basic investing should be a case of buying shares in a company that's going to do well over the medium/long term and watching as your capital grows and either reinvesting or otherwise cashing in your dividends.

Buying low and selling high requires you to know that there is a high coming at some point in the future. Someone with a lot of industry knowledge might be able to more accurately predict the state of NRK in a few weeks/months/years than me, but even a short-term trader would diversify to the point that all his eggs weren't in one basket. He'd also probably have stop-loss orders on his trading account to ensure that a sudden drop didn't wipe him out.

You probably don't know enough about the company to do anything more than hope it will still be in business this time next month, let alone trading at a higher price than now.

i just want peoples opinion on if they will buy their shares or not. its unlikely nrk will go bust. takeover is likely but who knows. if a takeover happens i won't lose my money. dont u lot think this is risk free as the share price is quite low?

Have you not been listening at all? buying shares right now is about as risky as it gets in investing, hence my comment that this is much more like speculation. There is a very good chance that investors now will lose nearly everything, as the public trust in NRK as a company has been shattered, whether it was deserved or not. It will take some seriously good management to recover from this blow, and it's certainly not going to happen overnight. I don't know enough about their executive board to decide if I think it's likely that they can recover from this disaster, and I strongly suspect that you don't either.

And if a takeover happens, you might well lose a lot of your money if the takeover is at, say, £1 per share.

oh btw ive been hearing ppl making lots of money from nrk recently.
http://uk.answers.yahoo.com/question/index?qid=20070914134214AAPIoSN

People have been making money. By selling short and/or spread betting. If you know what that means, then you'll realise that people have not been making money by buying shares and holding on to them for a while.

In fact, did you even read the link you just posted? those people posted 6 days ago. In 6 days the price of shares has worse than halved, meaning those people giving great advice of "buy now" have lost half of their investment if they practiced what they preached. Do you really want to listen to people who have just lost that much because of their blind following of a poorly-understood mantra?

student200777

roswell thanks for the info. ill wait. ur right about companies not willing to takeover now. if a company takes over northern rock do i still have a chance of buying nrk shares which will kind of be at a low price and will that be a good time?

napoleon

you'll never know whether its a good or bad time. Avoid northern Rock shares completely , buy some proper shares instead.

LOST

by the time you find out a company is willing to bid for NRK - the shares will be too expensive - markets adjust to news very quickly!

buying NRK is pure speculation - you should buy very low and sell at a higher price to make a quick buck (assuming they don't fold or shares don't drop further)

too volatile and high risk for me...

student200777

napoleon like what? im a beginner so give me advice. i wanna start buying shares.

student200777

napoleon like what? im a beginner so give me advice. i wanna start buying shares. my aim is to become a millionaire from buying

Aegis

student200777 wrote: »

napoleon like what? im a beginner so give me advice. i wanna start buying shares. my aim is to become a millionaire from buying

If that's your aim, then learn everything you can about companies, markets, trading, economic cycles and market psychology. After that, with a little luck, you might be able to get some guaranteed returns every year.

Investing isn't something you can just dive in to and make a quick fortune out of. I'm personally a long-term investor hoping to make about 10-20% returns on my investments every year where possible, which is possible without a huge deal of research and with surprisingly little maintenance. I'll probably have great years and awful years as time goes on, but in the long run I'll do nicely.

Of course, not having to spend all my time on markets means I have time for a job, which will earn me somewhere in the region of 20 times what I will make on the stockmarket in a good year, and this is my second year of work after university.

If you want to become a trader, consider how much effort it will be, then go for it full on if you wish, but LEARN FIRST. Just diving in will lose you a lot of money and put you off for life.

napoleon

student200777 wrote: »

napoleon like what? im a beginner so give me advice. i wanna start buying shares. my aim is to become a millionaire from buying

I think you're on a wind-up. My considered and professional advice would be to put the money back in your piggy bank and forget all about this share-dealing nonsense

student200777

thanks every1 for the advice. if u dont mind but how old is every1.
aegis u sound like my mom i just dont know why but have have that tone.

Ivan_Konstantinov

napoleon wrote: »

I think you're on a wind-up.

yep,sounds like a troll