How would I invest money on the stock exchange?

Answer 1

If you're inexperienced, the most sensible thing would be to start off investing in a fund rather than a specific share. That way, your money is spread over many different companies, so it's less likely that a problem in one firm will wipe a significant chunk off its value.

Funds have different names - OEICs, Investment Trusts, Unit Trusts etc - but they are all ways to pool together money from lots of small individuals to create a big enough pile of money to have somebody manage it professionally (which you probably have neither the time nor the resources to do).

Be careful - when you buy funds, the person you buy it through will want a commission. Normal suppliers (including your high street bank) will often take up to 5% out of the pot you're investing. Buy a copy of an investing magazine (Shares, Investor's Chronicle) to find out the names of reputable "fund supermarkets" which will often reduce that to 0.5-2%.

If you can, get plenty of information on the funds you're looking at, including their past performance. It's not a reliable guide to what they'll do in future (as they're legally bound to tell us), but it's the best clue you'll get. Some companies seem a bit better run than others - Fidelity, AXA Framlington, Jupiter and JP Morgan Fleming have all been kind to me - but other people will have other experiences, and it can vary from one fund to another within a given company.

Avoid multi-manager funds, because their profits get eaten up in administration costs you can't even see.

Start off small, you'll learn as you go along. However, be aware that most of these investments are likely to need to be of at least £1,000 (in a lump) or £50-£100 per month by Direct Debit.

And finally, make sure that you use your ISA allowance - no point letting the taxman take a cut of your profits if you don't have to!

Good luck with your investments!

Answer 2

My credit union told me about FOLIOFN. It's an affordable way for anyone who is interested in the stock market to start with very little money. You can learn as you go -- which probably makes alot of Money Managers cringe -- who cares!

Anyhoo...Make 4 trades per quarter they will waive the $20/quarterly inactivity fee. Trades are $3.50 each or if you setup an automatic investment schedule trades are only $1.95.

Best wishes,

pup

Answer 3

Ask around from people you know and trust, and pick a broker from a well known brokerage - no small ones that are borderline crooks (known as boiler rooms or broker dealers). If you only have a few thousand dollars to start, a bank that deals in large established mutual funds with long track records would be a good way to go.

Answer 4

Well, first of all, BE FAMILIAR with the it..

Then, find a "place" to host the trading and all the transactions, if it's individual trading, I recommend www.scottrade.com because it offers low trading rates ($7.00 per trade). Of course, you can always use a broker, but be ready to pay commission fees.

The stock market is known for its volatility, but its returns can be very profitable in a very short time. All type of investment has its risks...and remember, higher risk = higher returns.

My favorite quotes are: "Diversified Portfolio" and "Whatever goes up, goes back down; and viceversa"

http://beginnersinvest.about.com/

Answer 5

It is important to "diversify" your investments --- that is, don't just buy shares in one company. Ask your local bank for reputable brokers, then consider mutual funds or annunuities. With a CD, you pay income tax on your interest each year. With annuities, your tax is delayed until you sell them (and your interest is re-invested to earn even more money). That way, an annuity with a 5% return is equal to a CD with 8% return for income tax brackets under about $75,000..

Answer 6

Hi, i suggest a great site with plenty of Issues related to your Investing and everything around it. it also provide clear and accurate answer to many common questions.

I am sure that you can get your answers in this website.

http://investing.sitesled.com/

Good Luck and Best Wishes!

Answer 7

start a share account. get recommendations on a decent broker. decided how much to invest (make sure the money is truly not needed for anything else). choose your risk type:
high : equity
medium: equity + bonds
low: bonds

Answer 8

Find yourself a reliable broker and only invest in blue chip companies.

Answer 9

Set up an account with Ameritrade that's what I did. My mutual funds are not doing well at all. I believe the website is www.ameritrade.com or you can just goggle it.

Answer 10

Send it all to me i'l make sure it's invested properly , there's so many bad people out there !