Share Dealing Discussion Area

dioratelier

I have £5000 to invest, I am thinking in Shares, does anyone know the best shares to buy and how?

Buddy195

dioratelier wrote: »

I have £5000 to invest, I am thinking in Shares, does anyone know the best shares to buy and how?

Best shares? If we knew that everyone would be putting money into them. Research sectors you'd like to go into and look at performances of the shares what dividends and how the company is doing etc. Shares are a risk, especially with the current situation with banks etc. Big gains to be made,, but could also lose the lot.
Best way to buy set up an on line dealing account. Loads of em about look on moneysupermarket they do a comparision of a lot of them.

tradetime

adambro wrote: »

I would strongly discourage anyone not even familiar with buying shares long to consider the likes of spread betting. When buying shares long it is at least straightforward to work out how much you could loose. With spread betting, CFDs etc. this isn't the case. You can loose a lot more than you originally invest. For simplicity, and as a student investor/trader myself, I'd suggest sticking to long positions only for a substantial period of time to build up a real understanding of sharedealing.

Yeah, in one respect I understand your point and agree with you, but the poster stated he was just looking to "have a punt", why waste your time opening a brokerage account, just to "have a punt" he can use guaranteed stops, have his punt and be done with it.

sabretoothtigger

The whole margined thing does tend to screw up peoples risk management.
Most people are better off buying and forgetting all about it for a while which means no margin calls and fairly low profits

IG index does guaranteed stops but most of the others dont. I think they charge 3%


Having a punt would require correct timing so alot of the time it'll be money down the drain really, expensive habit tbh

Probably works best as a hedge, you have a ftse tracker but want to bet the market will fall for a couple days. If theres a strong trend in either direction you get a result

tradetime

sabretoothtigger wrote: »

The whole margined thing does tend to screw up peoples risk management.
Most people are better off buying and forgetting all about it for a while which means no margin calls and fairly low profits

IG index does guaranteed stops but most of the others dont. I think they charge 3%


Having a punt would require correct timing so alot of the time it'll be money down the drain really, expensive habit tbh

Probably works best as a hedge, you have a ftse tracker but want to bet the market will fall for a couple days. If theres a strong trend in either direction you get a result

I'd agree with that too, imho the most important element of short term trading, or gambling, or both if you consider them to be the same, is risk management. Without effective risk management you will go broke sooner or later, so if using leverage distorts your ability to effectively assess and manage risk then it's best left alone. Shame or financial system lost sight of that.

jools2001_2

I,_Brian wrote: »

Income from investing in shares are subject to Capital Gains Tax under normal conditions - income from trading in shares is subject to Income Tax under normal conditions.

Income from investing/trading in shares within an ISA is not subject to any tax liability - ie, the income is tax free.

Hope that helps.

I was previously advised here that no tax (ie) Income tax , is payable if within the capital gains yearly allowance.
Are you saying that any money i make from selling my shares,that i should declare or keep back 20% of my profit to pay back to the tax man?

Thanks in advance...........

tradetime

jools2001 wrote: »

I was previously advised here that no tax (ie) Income tax , is payable if within the capital gains yearly allowance.
Are you saying that any money i make from selling my shares,that i should declare or keep back 20% of my profit to pay back to the tax man?

Thanks in advance...........

No, there is no tax to pay on profit from share sales unles it exceeds the currently £9,600 CGT threshold, unless you are deemed to be doing it for a living / source of income.

jools2001_2

tradetime wrote: »

No, there is no tax to pay on profit from share sales unles it exceeds the currently £9,600 CGT threshold, unless you are deemed to be doing it for a living / source of income.

Cheers Tradetime,

Unfortunately as previously predicted,today i am starting a 30 day consultation at work,and to be honest,things dont look all that good. would in your opinion buying and selling about 3 times a week be classed in the eyes of the taxman as being a professional dealer,as im obviously looking to do just that in light of my job going in a few weeks time? but dont want to be hit with a tax bill,as this hopeful gain from share dealing is going to be my only way of getting an income in the near future at least

cheers again

Jools

sabretoothtigger

If you earn more from dealing shares then what you are paying income tax on then they might judge it that way I guess

tradetime

jools2001 wrote: »

Cheers Tradetime,

Unfortunately as previously predicted,today i am starting a 30 day consultation at work,and to be honest,things dont look all that good. would in your opinion buying and selling about 3 times a week be classed in the eyes of the taxman as being a professional dealer,as im obviously looking to do just that in light of my job going in a few weeks time? but dont want to be hit with a tax bill,as this hopeful gain from share dealing is going to be my only way of getting an income in the near future at least

cheers again

Jools

You are getting into the area of tax advice here mate, and remember, I'm just a bloke on a bb, definitely not a tax expert, so here's my 2p fwiw. I'd say on one level it depends a lot on your turnover, and possibly your circumstances with regards to normal income. Buying and selling 3 times a week would potentially give you a high turnover.
My advice, (others please feel free to disagree for some alternate perspective) it's nearly the end of the tax year now, so you will have a full year to 18 months stretching ahead of you, consider it GGT on a hobby and see how you go. If your turnover exceeds (I think) 4 x the CGT allowance then you will have to declare to IR, and at that point I'd seek the advice of a chartered accountant.
I suggest it that way, because to be blunt better than 80% of people who fancy the idea of doing this lose money, so by the time it comes round to tax reporting you'll most likely have gotten yourself another job, sorry to be negative here, but no point in spending money on tax advice at this stage.