Help understanding ( shares etc)

BrockStoker

Biil wrote: »

Can someone explain to me are trade and shares different ? Else am misunderstanding it.

A trader makes money by trading shares every day. Investors buy and hold for long periods. Trading is very risky. With shares, traders are not just restricted to buying and selling. They can also do things like "shorting" shares, and making "put options" for example, which are basically bets that the share value will move in a certain direction. Very dangerous if you don't know what you are doing, but potentially lucrative if you get it right.

Biil wrote: »

So even if I did research one company alot, am guessing placing my chances on that one is not sensible? Am assuming more broad I am better to kinda minimize risk ? Kinda

If you know that company well, it may not be a huge gamble, but it still would be a gamble. It's fair enough if you want to take a punt, and realize that you might not get all your money back, but it's not what most here would call investing. Better to start off by investing in a diverse fund, and later move on to shares once you have that part taken care of.

AnotherJoe

Biil wrote: »

I greatful for everyones answers, This has given me more to think about and provide a stepping stone for more research.

Just so I don't over rocket myself lol

Can someone explain to me are trade and shares different ? Else am misunderstanding it.

I wasn't expecting so many variables in such investment. I been reading links givrn.

So even if I did research one company alot, am guessing placing my chances on that one is not sensible? Am assuming more broad I am better to kinda minimize risk ? Kinda

OP, the issue with your questions is that you are so far from an understanding of whats happening that you need to do much more research before you even get into asking questions. There are books and websites, Monevator and the escape artist would be a couple of websites I'd recommend, also look at the video series by lars kroger. http://www.kroijer.com/


At the moment answering your Q's and letting you go off spending is as if you asked "is a straight or a flush a better hand" and "whats the difference between a raise and a straight", before you went off to play 5 card stud with your money.

LobsterMemory

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If you actually want to invest in stocks rather than trade then don't go in with the expectation that there'll be daily swings in thousands. Even with a six-figure sum, it'll be just a few hundred in the normal scheme of things
Originally posted by LobsterMemory

Thrugelmir wrote: »

Holding individual shares can be more volatile than people imagine. Easy to see swings of a few K in a day on a portfolio that runs into six figures.

Sorry, remind me which one of us has a 6-figure portfolio - 2/3 blue-chip for those interested - and checks their performance on a daily basis?

Cue Meltdown Tuesday...

LightKnow

Thanks to all the responses, I took a small leap and it was abit wild at start, I can't say am 100% confidant I understood all aspects but I have learned are fair amount from my error and test.

All information and links given were beneficial and will keep them for future reference aswll ^_^