Beginner to investing

Ojb

Hi
I am new to investing but get the idea that I need a platform to invest in shares or funds.
I would prefer to choose companies I invest in and start small maybe 100-500 a month to drip feed and hopefully grow my balance.
I like the idea of the basic platform x-o but not sure if it's too basic for a beginner?
I plan to use my 20k ISA allowance as a wrapper.
I have a few companies in mind to get me started and see how it goes.
I did think about P2P lending as it's more straightforward but it also has risks.
Any advice?

ColdIron

Any advice? Yes, don't do it, it's a classic novice investor mistake. Company shares are very high risk and always uneconomic with tiny amounts like these

In an earlier thread you wrote

Ojb wrote: »

I have a few ideas of companies / sectors I would like to invest in, but after some research a lot of advice tells me that low cost global index funds are the best choice and buying individual shares rarely beats the index funds. Is this correct?

It was, and remains, correct. Most investors will never buy company shares and of those few that do, most don't do it for long

Alexland

For that amount you would likely do better buying a fund on Vanguard Investor. Trading individual shares rarely outperforms the market over the long term.

cloud_dog

Ojb wrote: »

Hi
I am new to investing but get the idea that I need a platform to invest in shares or funds.
I would prefer to choose companies I invest in and start small maybe 100-500 a month to drip feed and hopefully grow my balance.
I like the idea of the basic platform x-o but not sure if it's too basic for a beginner?

Jarvis X-O doesn't offer a drip feed facility. You would need to make investments manually each month (£5.95).

iWeb are a good basic platform or Halifax.

ColdIron

AFAIK iWeb doesn't have an automatic monthly purchase facility either

DrSyn

I agree with what ColdIron wrote in post 2.

Don't do it.

The investment costs alone, for the size of investment you mention will be a disadvantage for you to overcome to begin with. Believe me costs do matter.

Holding a few shares is very risky and also you will not have any diversification either.

Do you know or understand about "re-balancing a portfolio" to control risk?

You all ready know from your research the advice about "low cost global index funds".
Just so that you get what you will be up against I suggest you watch this:-

http://www.kroijer.com/

As you seem to crave excitement in your investing, I suggest the following approach:-

1. Place most of the funds into the low cost global index tracker.

2. Learn more about investing.

3. Then take a small amount (say 5%) and try your luck with different investing techniques. I suggest the following to start you off with.

(a) Select the company you are thinking of now.

(b) Buy the second highest dividend yielding share of the"Dogs of the FTSE" . Sell after one year then repeat the process.

(c) Learn about charting and pick one share that way.

If you win consistently for say 10 years, you can tell everyone how easy it is to succeed at investing. If you lose, keep quite and thank god you chose the low cost global index tracker for most of you investment.

Ojb

Would I better off doing a virtual portfolio to see how my choices get on over 6 months or so?

Thrugelmir

Ojb wrote: »

Would I better off doing a virtual portfolio to see how my choices get on over 6 months or so?

Following a number of individual shares would be educational. Firstly though build your core portfolio. Diversification can be added in the future. When your portfolio is of a greater size.

LobsterMemory

Blimey, the negative hyperbole on here about direct share ownership!

People have been investing in shares for 250 years and it's not the road to penury that everyone's making it out to be.

Ojb

Thanks for the advice !