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Shares

How can you study the stockmarket and decide what are good shares to buy at the present time in the hope they will go up. just came across someone who has nfu share worth £10 each and she has 10000 of them. imagine that.

Comments

  • That is what I'm wondering too :-)

    I'm completely new to Investing, and want to have a dabble with buying shares in small numbers every month. I have quite a large disposable income at the moment and figured I would try and do something with it.

    I've opened a Halifax ShareBuilder account, which I believe will allow me to trade in small numbers fairly cheaply. Probably looking at investing between £200 - £300 a month.

    But the question is - what to buy.

    As I've said, I have absolutely no experience in Share Dealing, I don't even fully understand how it works. I've read the guides on here and am just going to have a dabble. Anyone got any recommendations?
  • The first thing you need to learn will be to read the financial statement of the company. Also view the webcast of their annual meeting presentation.

    You need to know the company inside out and feel convinced before you put your money in.

    There are some website where you can create a virtual portfolio. Try to 'buy' and 'sell' a couple of rounds before putting in real money.

    Remember: Don't try to look for short term gain. Go for a longer term (5 year or more). You pay more in admin charges than you really earn in the long run.

    I think fools.co.uk has quite a few articles on share dealing. There are also dummy guide around. Just beware that some sites might be a scam (e.g. promising 70% return etc). Share dealing will never get such high return generally. It is not a gambling den but a real market where people buy into a real business.

    Hope it helps a little.
  • In over twenty years of share trading I've made and lost a fortune on shares, common problems I suffered from were over trading, buying 'bargains', selling winners far too soon and not selling losers soon enough.

    I read a book by John-Chatfeild Roberts 'Fundology' and it changed my life. I decided that single company share trading is best left to the professionals and now use Unit Trusts from fund managers such as Artemis, Jupiter, AXA, Standard Life etc
    If it takes a man a week to walk to walk a fortnight how long does it take a fly with tackity boots on to walk through a barrel of treacle?
  • Aegis
    Aegis Posts: 5,695 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I'd also add that in my view, collective investments (i.e. Unit Trusts and their ilk) are a lot easier to use and make money from than trying to pick out good buys in the world of shares. Sure, the ability to invest in a penny share and watch the price triple in a week is a great dream, but the risk is usually at least proportional to the reward, if not higher.

    With a collective investment, you usually invest in at least 30 companies no matter how much you put in. That sort of diversification would be hideously expensive for small-capital share investors without this sort of thing.

    So, the question to ask is this: are you really interested in share dealing, or in making money with generally much lower risk?
    I am a Chartered Financial Planner
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
  • ariba10
    ariba10 Posts: 5,432 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    As much as I did not like the woman I will always raise a glass to Maggie Thacher.

    It was she that introduced me to share dealing.
    I used to be indecisive but now I am not sure.
  • Browntrout wrote: »
    In over twenty years of share trading I've made and lost a fortune on shares, common problems I suffered from were over trading, buying 'bargains', selling winners far too soon and not selling losers soon enough.

    I read a book by John-Chatfeild Roberts 'Fundology' and it changed my life. I decided that single company share trading is best left to the professionals and now use Unit Trusts from fund managers such as Artemis, Jupiter, AXA, Standard Life etc

    I agree, funds are best for people that are wanting to invest but dont no the ins and outs.

    https://www.h-l.co.uk they also do guides to funds.
  • thanks for all the replies guys. appreciated.
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