Where do I start with the stock market?

DKacha

I am a student with a decent amount of savings. My income is greater than my expenditure, so my savings grow regularly. I use ISAs and regular savers to earn interest because I prefer my cash to accessible instantly, but I am considering putting a small amount into not-so-liquid investment, like the stock market. How much of my savings would be a good amount to start with? And what’s the best way to get started investing in stocks?

eskbanker

As well as other newbie investor threads on here, there are plenty of sites suited to inexperienced investors wanting to research, such as:

https://www.moneyadviceservice.org.uk/en/articles/investing-beginners-guide

https://www.hl.co.uk/beginners-guides/investing

http://www.monevator.com

http://kroijer.com/

http://diyinvestoruk.blogspot.com/

https://www.ifa.com/indexfundsthemovie/

as well as bearing in mind a number of key points of principle:

1. Only consider investing once you have adequate accessible cash reserves.
   
2. Only invest if you're happy to commit for at least 5-7 years and preferably 10-15 or more.
   
3. Diversify - ignore individual shares, etc, and concentrate on collective investments that spread your eggs over many baskets. Global multi-asset funds are a good place to start, available from the likes of HSBC Global Strategy, Vanguard LifeStrategy, Blackrock Consensus and L&G Multi-Index.
   
4. Choose what you want to invest in before considering which platform to hold it/them on.
   
5. Keep an eye on ongoing costs for funds and platforms - they shouldn't be the primary consideration but can make a noticeable difference over the long term.
   
6. Use a Stocks & Shares ISA as a tax-efficient wrapper to avoid liability for income and capital gains tax.

Malone2020

If you are going to invest in individual stocks - and IMHO there's nothing wrong with that if you can diversify your portfolio enough over time - make sure you do the background research on it. Don't be tempted to wade into taken a position on a particular stock because you read a recommendation on the Internet. Also, be careful not to get carried away with the hyle over the 'next big thing' - just ask anyone who got burnt buying Canadian cannabis stocks! I also find that the understanding the company and what it does is also an important first step in identifying possible changes in context that might impact on the valuation and profitability of a company in the future. I mean, you likely go grocery shopping so you'll have some basic understanding of what Tesco, Sainsburys, Walmart, Morrisons etc do, and you'll likely have at least some grasp of factors that impact on their performance. Can you say the same about cyclical mining or oil stocks? Would you know the gist of what pharmaceuticals or every bio-tech stock does. Lastly, a sound bit of wisdom from Warren Buffet I've really come to value is that there are two rules to investing; Rule 1 don't lose money and Rule 2 never forget Rule 1....

grumiofoundation

DKacha said:

I am a student with a decent amount of savings. My income is greater than my expenditure, so my savings grow regularly. I use ISAs and regular savers to earn interest because I prefer my cash to accessible instantly, but I am considering putting a small amount into not-so-liquid investment, like the stock market. How much of my savings would be a good amount to start with? And what’s the best way to get started investing in stocks?

What are you saving for? And as discussed above what timescale?

If a house purchase have a look at a lifetime ISA - 25% government bonus will beat stock market gains over quite a few years if you are using for a house.

https://www.moneysavingexpert.com/savings/lifetime-isas/

stud26

Further to what the others have suggested, you have the option to pick what to trade in using something like freetrade and trading 212, or let apps like tickr, moneybox and wealthsimple do that for you. You can select your risk level, add funds and they'll do the rest.

You can be as involved as you like but managed accounts usually come with a fee. Make sure to research everything and pick something that suits your circumstances and savings goals.

Good luck.

Apodemus

DKacha, as a student, you should be well-versed in researching new topics and I would suggest you should approach learning about investment in the same way.  Although, I had a couple of stock-market investments from an early age, it was while at university that I had the time, partly as light relief during library study, to read a lot of old texts about stock market investment and access to a huge catalogue of financial press, past and present.  Although the investment world has changed hugely since I was a student, there is now a lot more information readily available, particularly to students with easy access to literature.   Enjoy!

Albermarle

Whatever you do , do not get sucked into day trading, or trading in CFD's etc .which is just pure gambling .
Successful investors tend to think long term .
Freetrade and trading 212, or let apps like tickr, moneybox and wealthsimple do that for you. 
Also have a look at the larger more established investment platforms like HL, Fidelity, AJ Bell etc 

pip895

I know it goes against your requirement of instant accessibility but if there is a likelihood of wanting to buy a property in a few years then consider a lifetime isa - the up to £1000/year on offer from the government takes a lot of beating!