Shares/Stock Market

[Cozwin]

Ok so ive been thinking about doing this for a while and having a dabble in the stock market, but havent really got a full idea on how to do it.

So looking for advice of anyone that is doing it at the moment, on what company to use for buying shares, how it works etc.

Thanks.

[streetster]

buy low, sell high

a few of the guys at work, myself included, use interactive investor , £10 commission per trade which seems to be fairly good... there must be some traders on the boards who can give you some advice here though

[Lucio]

The question is are you investing because your a) curious, b) trying a new form of gambling or c) aiming to make some long term investments to boost your retirement fund.

If it's a or b, I wouldn't worry too much, just use whatever disposable income you have, make some choices and go for it. If you want, make a dry run or two, pick a few stocks to follow, see whether they go up or down over say a month and see how things would have worked out.

If it's c), I'd strongly suggest getting a decent stock broker on board, and working out how much you can afford to loose, versus how much you'd want to gain.

[oolon]

a few of the guys at work, myself included, use interactive investor , £10 commission per trade which seems to be fairly good... there must be some traders on the boards who can give you some advice here though

I also use interactive investor, both the forums and the share dealing service. Its one of the cheapest services available, with no monthly fees, 10 quid trade price, and no charge for rights issues.

The share dealing service is branded iii however is run but HBOS/LLoyds so your money is in good hands. Have a read of the forum there is a lot of information there, Particularly DIAGEO one as a new person has had a lot of questions answered recently. As to which companies to by... The iii site has some advice, read the boards and this is something you have to make your own mind about which to buy, this is one thing investors generally don't give, the two active phrases are DYOR (Do you own research) and Loose your own money. Its not people don't want to help you, they believe only you are responsible for your share deals and don't want people to say ... well you said buy and it went down. Nobody is holding a gun to your head then you buy a shares.

Here is what I do to select shares... shamelessly copied from my post to that site.

• Prejudice: Generally I like companies with an international footprint, not sure UK plc is doing so well.

• Being paid: I generally favour companies that pay to hold on to my money like Diageo. Even better if its more than a bank would pay.

• Watch the cleaver money: Find someone who you respect, like LKH, then go to their profile and look at what message boards they post on.

• Ignore brokers: If you pick a stock every broker is recommending they only way they can change that recommendation is down!

• Back it all the way: I am not a trader, can't seem to do short term, its "Do or Die" for me.

• A profit is a profit: If your sitting on a good capital gain take the money and run, it may not be there tomorrow. I like to compare how long it would take to get that gain via dividends, as this tells you the amount of time you can wait to get back in the same level you originally bought at.

• Gut: Break your rules, when you think you spot something. I said previously I was do or die however I did dump HBOS, and PUB before they died. I am still holding BT which for me is up 70%.

The most important thing is to do your own research. Its your money, do what you want with it not what some idiot on a board on the interweb says.

I will not list the shares I have here as I have bought them at a much lower level, so they may not be the bargin they once were. If you really want to know, PM me and I will tell you.

[kalniel]

Simplest thing is simply to take out a stocks and shares ISA in an index tracker. Low fees, no tax paid on profits/dividends. Win.

But rather boring compared to trying to beat the market by investing in individual companies, sure.

[oolon]

Simplest thing is simply to take out a stocks and shares ISA in an index tracker. Low fees, no tax paid on profits/dividends. Win.

But rather boring compared to trying to beat the market by investing in individual companies, sure.

Except one thing... the index has been dropping, all your profits would have been wiped one back to 2005! An index tracker is not risk free and to really gain you need to know when to dump it. Yes now it could be a good time to buy in, however you have to remember when to sell, its not a buy and forget kind of thing. My portfolio has been beating the FTSE, also my loses from the stock market drop have been canceled out and I am now in a reasonable profit, something most people with a tracker will not be.