Shares how do you pick shares and how long do you have to wait for them to pay out?

Answer 1

Buy low and sell high. From a tax point of view in Australia, it would be best to sell your shares at a higher price somewhere after 1 year, to avoid paying tax from the profit of your shares.

Answer 2

In general you look for Companies you think are going the thrive in the future ... needless to say everyone else is trying to do the same .. and as others have said, you will never know enough to spot the next Microsoft.

However you CAN make steady money by sticking to the major players - the FTSE100 (top 100 UK Companies) consistently outperforms Building Society Interest rates etc.

But right now ? With the FTSE and DowJones in free fall ????

Some Companies are relatively immune to market panic - obvious ones such as Food (Tesco etc) and Utilities (Water, Power etc).

However a lot of Companies are vulnerable - for example Banks and Insurance Companies have a lot of money invested in OTHER Companies - so they are very sensitive to market panic.

Having said that, plainly the best time to buy Banks etc. is after everyone else has sold out ... and the best time to sell Supermarkets etc. is when those who sold their Bank shares have piled into Supermarkets & Utilities and pushed the price up ...

At this specific time my view would be to track large Companies with good dividend streams .... if the Companby is paying a decent dividend (and looks like it will continue to do so) then there is a limit to how far it will fall in the sort term.... and when that point is reached, buy some.


How long do you hold on ?

Well if a Company is paying a decent dividend, then the answer is 'for ever'. If not, then you sell when a better opportunity comes along - or perhaps when you become convinced it's never going to increase in value or start paying a dividend ..

You should expect a return of between 3% and 6% over Inflation per year.....

NB. If you go chasing after the mythical '10 baggers' (shares that have gone up by 10 times and returned 1000%) you are likely to do a lot WORSE than the rate of Inflation :-) )

Answer 3

Join a telephone share trading company. You can find one in any share magazine like Investors Chronicle or Shares magazine, then you can make the deposit (say £3000), and when you see a share you want to buy you only need to pick up the phone.
That's the easy part, you then have to familiarise yourself with the share market .. what's up .. what's down .. what's worth buying and what's not. you can learn this from the daily papers Business section, especially the Times & Telegraph. The market report discusses what happens each day and in a month or so you might feel you know enough about it to take a chance.

Answer 4

I pick shares from based on a TA System. I don't really care about the fundamentals of the companies. I look for certain chart patterns and price action and make buy and sell decisions from the chart.

If you are looking at investing longer term I would suggest researching the company. However, if you are looking at speculating on short term positions charts are the way forward.

I could show off and attach my myspace trading page, where I picked 10 Shares. Two Longs, Eight Shorts. Fully leveraged on a spread bet account would have seen gains in excess of £1million in a month.

When dealing in Shares I am more of a trader/speculator than investor. Personally I couldn't care if the company goes bust or it goes to the moon, just as long as I am on the short side if it goes to the wall or on the long side if it goes to the moon.

You can get software that you can setup to trawl through stocks looking for certain technical situations, and it will pull these for you to look at.

One tip I would give from a TA point of view is to adjust your RSI setting to a monitoring period of 2 and look for a reading of 2 or under to execute a long position or a reading of 98 or more for you to go short. This is a simple rule I look at, it showa quite clearly overbought and oversold situations. You should take profit on a 48 hour position looking just at these numbers.

There is more to it of course, but I am not going to be stupid enough to give everything away on Yahoo Answers.

Just remember it can be done, by applying logic, discipline and having a set of balls to make a decision without procrastinating.

Personally I trade Oil Futures and Dax Futures but one cap fits all.

Answer 5

go to motley fool.com and sign up. It's free. Look under the My Caps page and there you will find others and their picks. You'll get a good idea as to what is a good buy.

Wait them out a year and cash in. Here's a penny stock I like. It's trippled in the last month.
I bought 10000 shares at a penny and it's now worth over $300. PBLS.PK

it's like playing the horses. Read about the stock before you buy.

good luck

Answer 6

Leave them alone they are manipulated by big players and inside information and the small investor doesn't have a chance.I have been reasonably successful in most things but in shares have been hopeless losing years of money hard earned in search of the quick buck