How much to get started in Share dealing?

Handsome_Homer

Hello all. I have a simple question with a complex (maybe) answer...

(I've posted it on the Share Dealing Discussion, but that thread doesn't get many hits. Please excuse me for reposting here...)

If I'm starting out investing in shares, how much should I start with?
Looking at the share prices, they seem to be mainly in the £100+ PER share. That seems beyond the reach of most people. So how about some advice?

Are there cheaper shares I should be looking at?

And,

How much would be a rough minimum to start off with: £1000? £2000?
Or is it better to allocate a min a month; £100, £200

Would be great to hear ideas.... thanks!

Aegis

The prices on the FTSE are quoted in pence per share... Most of them are in the 10p to £10 per share range from what I've personally seen, with the more expensive ones around £20.

Because of trading fees I would suggest that you might want to consider a minimum of £500 per company, preferably more. The more you trade, the lower your gains have to be in order to offset the transaction costs.

Handsome_Homer

<coughs> i think the phrase you're looking for is DUH!

how could i have missed its pence not pounds......
please let's not mention this ever again....

now given that i've made such a basic error, i think it's better if i start with a 'trial' account, rather than risk any money. on the other thread they suggested yahoo finance. other ideas?

thanks

tradetime

now given that i've made such a basic error, i think it's better if i start with a 'trial' account, rather than risk any money. on the other thread they suggested yahoo finance. other ideas?

Probably a very good idea to start with a simulated experience than risk money until you see how things work. I think the motley fool may have a portfilio you can use online, leastways they used to, also Interactive investor used to have one.

catz1ct

If you do buy them privately, please keep an eye on them and don't forget you have them.

cheerfulcat

Handsome_Homer wrote: »

now given that i've made such a basic error, i think it's better if i start with a 'trial' account, rather than risk any money. on the other thread they suggested yahoo finance. other ideas?

Yes - that basic error suggests that you are nowhere near ready to invest - even with a paper portfolio! I suggest that you do a lot of reading first.

As to the pretend portfolio, there are a few points to consider before going down that route. The most important one is that you won't be losing real money - the pretend loss will never teach you the lessons that a real loss would.

The second is that you might be tempted to trade a lot - a very bad habit IMO. Most people are not equipped to outsmart the market.

Finally, if you must use paper trading, make sure that you are scrupulous about recording charges and tax, and honest about the buy and sell prices.

I'd suggest also that you have a good read of this board on TMF - read it from the first post all the way through. This will give you a very good start.