How should i go about investing in shares? People with experience?

Question

I know that you can lose money as well as gain when dealing in stocks and shares. My bank offers a a service for trading. What is the best way for me to get into buying/selling stocks and shares? Would I be better off using a broker who will take care of everything for me?

If i'm prepared to take the risk would it be better for me to invest money this way rather than sitting in a savings account?

Thanks

Answer 1

First decide why you want to buy shares - For the dividends, for capital growth, for an overseas holiday, a safe retirement? This is the most important part of your journey. Be patient. Do this part properly. If you don't know where you are going, how will you know when you have arrived? Worse, how will you know not to stop three feet from the goal line?

Then start studying - fundamental investing, and technical investing. Be patient. You should study both, regardless of which way you think you will end up investing. Prepare your exit strategy - i.e. know when and how you will terminate your investment, including the necessary stop-losses. Then you should simulate trading/ investing, until you make profit reasonably regularly. Be patient.

When you actually commit money, be prepared for completely different emotions to when you were simulating. Therefor only use about 1/10th of what you are willing to invest, in any one particular deal. Be patient. Stick to your exit strategies. Be patient. Do not be greedy, i.e. know that you will not time your entry and exit perfectly. Otherwise you will kill yourself with recriminations. Be patient.

And enjoy, it should be fun. And it will be fun if you don't over-commit, learn before you jump, and be patient.

BTW, over the long term, the surest way for your money to lose value is in a savings account.

Answer 2

First rule is to only invest money you can afford to lose.The money you are saving,there are many regular savings accounts which offer good rates eg.LloydsTSB offer 8% for regular savers shop around there are others.
As to dealing in shares you need a good broker.There are many and prices differ.one i use is T.D.Waterhouse for telephone trades they charge £17.50 plus stamp duty,online trades are £12.50.this is for a Nominee account so offer no advise.Advise will cost you money and the other golden rule is trust only yourself.
I suggest you buy a Magazine called The Shares Mag(W.H.Smiths)this will give you a lot of info on brokers &their prices.Online there is a vast amount of info.
Yahoo finance is good place to start,plus Reuters .Research is the key to making a profit ,it can be fun but also a bummerYou can also get free company reports from W.I Link or FT web site.
Good luck &tread carefully to begin with and do the research first.

Answer 3

Brokers are OK if you use a well established one like Whitechurch Investments in Bristol. They will interview you if required and recommend what they think is best for you. You could also consider one of the investment houses with a good track record like M&G Investments in Chelmsford. This is not really suited to short term investment. Each fund is run by a team of specialists and the risk well spread over the market sector. Your chances of doing well alone are slim. You need expertise and in depth knowledge continually updated to stand a chance and most of us have insufficient funds to spread the risk enough. I am not in the industry and nothing to do with either of them except that they have both done ok with my savings over the years.

Answer 4

1. Spend some time reading financial pages.
2. Decide on the market which would be best for you eg oil, retailing, telecoms etc.
3. Become familiar with your chosen market
4. Buy when you, or your preferred analyst, suggests that now is a good time to move.
There are plenty of good deals for share purchase. Banks can be expensive.

Answer 5

Savings acct guranteed to lose purchasing power vs taxes & inflation so never an option. Schwab.com has many mutual funds from different companies without fee + stock trading so better option than bank. ADX-large cap us PEO-energy EFA-global EWA-Australia. all solid 1st steps. If have no IRA setting 1 up to buy stocks in is the 1st step.

Answer 6

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